| As the Internet opens up the bookmaking world, and | | | | That is arbitrage in a nutshell and, although unlikely to |
| bookmakers face fiercer competition from the likes of | | | | happen at Wimbledon, it does occur in quieter markets |
| betting exchanges, more and more "sure bet" | | | | and events some way in the future. The screenshot |
| opportunities are starting to appear for followers of | | | | below relates to a first round match in this summer's |
| sports betting arbitrage - the practice of taking | | | | World Cup. Three bookmakers have priced up the |
| advantage of a price differential of two or more | | | | game in such a way that you could feasibly bet three |
| markets. | | | | different amounts on the three different outcomes and |
| Here is an example of what this means. Every | | | | be sure of winning. |
| bookmaker prices up a market "over-round" - that is to | | | | Example:- |
| say that he will always form his book (tissue) to | | | | Bet £21 on New Zealand with Pinnacle Sports (return |
| ensure that he makes a profit whatever the outcome. | | | | £201.18) |
| As bets come in for certain selections, he will adjust | | | | Bet £47 on The Draw with Canbet (return |
| the prices on his book to ensure that he remains | | | | £206.80) |
| over-round. So, some prices will come in and others will | | | | Bet £132 on Slovakia with MyBet (return £204.60) |
| go out to attract the money he needs to balance his | | | | The total amount staked is £200.00 with a |
| books. This happens in all sports. | | | | guaranteed profit no matter the result, and the stakes |
| Bookmakers may also form different opinions on the | | | | can be further refined to create an equal gain. |
| outcomes of closely matched contests or, in the event | | | | Sports Betting Arbitrage opportunities become |
| of a championship, have large liabilities on one particular | | | | available every day on every type of event, and there |
| competitor. | | | | are a number of online web sites who offer this |
| Taking Wimbledon as an example, bookmaker A may | | | | information free or by subscription. The subscription |
| consider that Roger Federer is the most likely victor, | | | | service is excellent, as many of these opportunities are |
| so puts him into the market short, so as not to attract | | | | snapped up within moments of becoming available, and |
| too much money on him and has longer odds on the | | | | a subscription service will text or email you with the |
| other competitors. Bookmaker B however, considers | | | | opportunities as they arise. |
| that Andy Murray will attract the money, and puts | | | | There are a few pieces of advice to share with you |
| Murray in shorter and inches Federer out. The | | | | regarding sports arbitrage betting. Watch out for |
| conclusion is that Bookmaker A would take all the bets | | | | withdrawal fees from bookmakers. Several may |
| on Murray, and Bookmaker B on Federer. | | | | appear generous with their sign-up bonuses, but have |
| When the final arrives, and it is Federer v Murray, both | | | | clauses attached obstructing you from moving your |
| bookmakers have got large liabilities on different | | | | money as quickly as you would like. |
| players, Therefore, Bookmaker A has taken a lot on | | | | In order to facilitate the fast transfer of funds, it is |
| bets on Andy Murray, and will therefore push out | | | | recommended to use an eWallet account such as |
| Roger Federer in the betting to attract the bets that | | | | Neteller in which fund transfers are practically instant. It |
| will balance his books, and the reverse will happen for | | | | can take up to three days for a withdrawal to appear |
| Bookmaker B. In theory, you could see the scenario | | | | in a credit card or bank account. |
| where both players are available at 11/10, and a bet of | | | | Finally, always check bookmakers procedures if you |
| £100 on each player (total £200 staked) would | | | | are betting in a foreign currency. Some bookmakers |
| return £210 irrespective on who won, and a profit of | | | | will convert your bet into local currency at one rate |
| 5% return on investment (ROI). | | | | and pay out winnings at another rate. |