| There are different names for sports arbitrage | | | | system? Let's create a theoretical bet: |
| opportunities; all of which refer to the same style of | | | | On Agassi - $267.64 with bookie A |
| betting. The most popular is 'arbs', while other names | | | | On Rafter - $232.36 with bookie B |
| are overbrokes, surebets, underrounds, all carrying | | | | Total Investment is $500 |
| exactly the same meaning. Arbitrage sports bettors | | | | Let's suppose now Agassi wins. You bet on $267.64 |
| are able to get near guaranteed profits by locating the | | | | on Agassi with bookie A |
| highest odds on each participant and placing their bets | | | | Agassi with odds of 1.91 with bookie A works out as |
| with different bookmakers accordingly. | | | | 267.64 x 1.91= 511.19 |
| "Arbitrage sports betting" is a system of betting on the | | | | Remember that your total investment between both |
| outcome of events to net a profit regardless of the | | | | bets was $500. Take that away and your net profit |
| results. It involves exploiting the differences in the odds | | | | works out to be $11.19. |
| that bookmakers offer on different participants. | | | | Now let's suppose Rafter wins. You bet $232.36 on |
| Arbitrage bettors, sometimes known as 'arbitageurs', | | | | Rafter with bookie B. |
| place their bets on every selection of a sporting event | | | | Rafter with odds of 2.20 with bookie B works out as |
| in a manner that ensures them a profit no matter who | | | | 232.36 x 2.20= 511.19 |
| the winner is. It is a way of gambling for assured | | | | Once again, your total investment between both bets |
| returns and is termed as no risk gambling. | | | | was $500. Take that away and your net profit works |
| The toughest part is finding at least two different | | | | out to be $11.19 once again. You can't lose! The profit is |
| bookies whose prices differ, and the difference is high | | | | assured. |
| enough to create an arbitrage opportunity that can | | | | Arbitrage sports betting is often portrayed as risk free, |
| provide a profit. To state it simply, you bet on one | | | | however, it is not entirely free of risks. For one, the |
| participant with one bookie and bet on the other with | | | | bookmakers have their odds balanced and if you back |
| another bookie. The odds offered by each of the | | | | both sides with the same bookmaker you are sure to |
| bookies should be substantially different and will be the | | | | lose. Arbitrage will only work when you place your |
| basis to determine the amounts that need to be | | | | bets with two different bookmakers who, for their |
| wagered on each participant to create a | | | | own reasons, offer different odds for the same event. |
| money-making arbitrage bet. | | | | They may also shorten their odds after a certain |
| For example, in tennis, let's suppose Andre Agassi is | | | | amount has been received against the bets and this |
| playing against Patrick Rafter. Bookmaker A offers 1.91 | | | | will kill your chance of making a profit. Bookmakers |
| for Agassi and 2.39 for Rafter. Bookmaker B offers | | | | also restrict the amount they accept from one person |
| odds 2.2 for Agassi and 1.72 for Rafter. This presents | | | | against a selection and even if you would like to put in |
| an opportunity to use an arbitrage bet to provide | | | | a bigger amount against your bet, you may not be able |
| guaranteed profits no matter who wins. Suppose you | | | | to do so. |
| are prepared to invest $500, what can be a good | | | | |