Sports arbitrage betting trading is where someone regularly trades price inconsistencies between bookmakers on the same sporting event. After all bookmakers are only human and they make mistakes. These mistakes can be exploited by someone who can spot them.
In truth a lot of betting bookmakers don’t want you to know this information…. but sports arbitrage betting is legal and doesn’t harm the bookmakers business in any case. The returns you can expect from sports arbitrage betting trading are dependent on various factors which will be visited in these pages. The main investment needed with a ‘sport arb’ is the betting stake. Investing in a sports arbitrage trade is almost risk free. To increase the returns and profitability of sports arbitrage betting the trader may wish to invest in additional services and technology to help performance. Well, this is your decision and depends on the level of experience. You can increase your budget with your level of confidence and success.
If the trader starts with a small budget the focus should be on adding profits to the betting bank. As the betting bank increases the stake level can also increase. With a small budget of less than say 2500 Euros or currency equivalent the arbitrage trader should only trade part time until the betting bank is sufficient to sustain a proper income.
Each time you stake money you need to decide what proportion of your betting bank you will use. A typical sports betting professional making money some betting strategy may only risk 4% of the betting bank on each bet.
Sports arbitrage betting is slightly different. Sports arbitrage carries much less risk than traditional betting. As such, a typical sports arbitrage bet will use a larger proportion of the betting bank. The reason being that, if you set up a sport arb correctly, there is no risk of losing any money.
How do bookmakers lose their money?
Sports arbitrage trading is all about spotting inconsistencies between different bookmakers’ prices. Pricing inconsistencies occur regularly and are produced by differences in bookmakers odds. What happens is that an under round occurs on the sporting event.
The under round forms the basis of a sports arbitrage bet. Simply the under round is when the total number of probabilities priced by the odds on that event are below 100%. A typical under round is where you would have to invest 96EUR to get the bookmakers to pay you 100EUR. Using this example a sports arbitrage bet would return 4EUR. The typical return for each sports arbitrate bet is between 3 and 5%, but if you are a pro at arbing you can spot arbs with return rate even over 10%!
A sports arbitrage betting involves placing bets in order to win whatever the outcome. That could mean betting for both players in a tennis match to win or both sides of a football game. This is one of the reasons sports arbitrage betting has a popular following.
There are two types of sports arbitrage bets. Sports arbitrage bets come as back / back bets or back / lay bets. We will examine how sports arbitrage bets might look in the next article!