Arbitrage Betting for profit?
Imagine a scenario where you can profit from a sports event no matter the result. It sounds like a perfect situation, doesn’t it? Well, that apparently is the concept behind Arbitrage Betting.
Is Arbitrage Betting Really the Magic Formula for Profit?
This topic is highly discussed in sports gambling circles and seems to be gaining popularity by the day. It essentially involves betting on all the possible results of a selected event in such a way that profits are assured regardless of the outcome. It is considered an advantageous gambling technique and is frowned upon (or even banned) by some bookies. However, others ignore its practice or even encourage it. You will need this information when you make a choice on which top Asian and European bookmakers to use for your betting activities.
What Arbitrage Betting Means and Its Forms
Arbitrage betting, also called arbing, is the action where the same bettor places 2 opposite wagers in an attempt to take advantage of the difference in the odds offered. You can find a more detailed definition in our post on the various betting terminologies. It is not a new practice. It actually has been around for almost the same time as the betting industry itself.
However, in the past, it required a keen and experienced eye, capable of realizing that the odds of two or more bookies were so different that there was an opportunity for profit. With the advent of online betting, checking multiple offers and finding a chance for arbing is not only a possibility. It is just a click away from reality.
Finding Differing Odds
This is the traditional way, and it requires looking for odds offered by the various bookies that differ enough to generate profit even when wagering on opposite results. Arbers can also make use of third parties in order to avoid possible restrictions and punishments.
Software Assisted Arbing
Like almost any other human activity nowadays, arbers can use specialized software to assist them in finding chances for their practice. However, this kind of computer tool can also be used by bookmakers. In fact, some of them are constantly monitoring the market in order to avoid being exploited. They change their odds as soon as they notice, which means that opportunities for arbing have smaller windows than before.
Sharbing
This slang word comes from the combination of shop and arbing and is related to the practice of taking advantage of the fact that physical shops take longer to update their odds as they have to print their tickets.
Facts and Advantages of Arbing
The main benefit of arbitrage betting lies in the prospect of guaranteed profits. This seems almost too good to be true, as one may think that the gambling establishments wouldn’t allow their odds to be that different from each other. However, the reality is that the online betting industry is so competitive that resorting to offering better odds is the go-to strategy. It’s their own marketing policies that are used to practice arbitrage.
The important issue to consider is that arbing is not illegal. The industry doesn’t like it because the premise of their existence is to use the money from the bets that are lost to pay the profits of the bets that won. Therefore, the practice actually reduces their profitabilities.
Their response is to limit the stakes, ban those that place such bets, or close accounts. Which makes it important for those that want to engage in such betting action to find a welcoming environment. That is provided by the best betting software in the market.
Shortcomings and Risks
In sports, there is no such thing as a guaranteed victory. The same stands true for sports bets. Even if the concept behind arbing suggests so, the winnings are not completely assured. As we said before, this strategy requires placing wagers on multiple sites. That entails very small windows of opportunity that have to be handled at levels of alertness and precision.
Also, as the profit margins are rather small (they go between 1% and 5% at the very best), the amount of money to be risked needs to be considerably high. Consequently, large accumulated capital is required, which is constantly at risk should any mistake be made.
The Answer to the Initial Question
Magic formulas are but a myth. Gambling is by default risk. While the practice can work every single time and assure no losses of the initial bankroll, it does not provide the profits of a normal betting process while it requires more money on the initial capital. There’s also another issue to consider. Betting is supposed to be fun. Where is it when a player has to spend every single waking hour planning meticulous strategies and looking for the slightest of opportunities?
It is a fact that there are plenty of good opportunities in the market involving bets of real value where you can make a far greater profit. If you are in doubt, you can always consult the experts of our Tipster Team and simply enjoy yourselves!