What is Sports Arbitrage?

Sports betting started as a simple leisure time activitythere is zero risk and guaranteed profit. The only short
for the rich and the moneyed class who bet on horsefalls are the lower profit and the higher sum of money
races. It started in England (now part of UK) and then itthat is needed to make a decent enough profit.
spread over to the colonies and stayed back as theHowever, it has been a popular method of placing
freedom was won for the United States. Since then,safe bets or sure bets since a long time back.
betting has become more than just a leisure timeHere's a simple example from just a few years back.
activity. It has become a passion and addictions forWhen Bush and Gore were competing, each had
many and some take it as a profession almost.odds of about 6/4. So by betting $1000 on each one,
For the serious bettor, there are several factorsyou could rest assure of a 25% return on the bets no
constantly playing at each game and that makes itmatter who won. So when Bush won, you would've
difficult to begin as a bettor whenever you want to.gotten $2500 and that would've given you a nice $500
There are a lot of things your need to learn first. Butprofit. So you have to invest higher but you will get an
once you are in full knowledge of what makes a bet aassured profit on it. This is a no-risk betting scenario
bet and all the different odds and how they areand hence everybody wins.
expressed and estimated, you are well on your wayHowever, you need to understand the odds for each
to becoming a pro.outcome before you can decide to trade arbitrage,
One thing professionals always do is keeping a lookbecause not all situations are fit for it. You have to be
out for new ways to make money. One of thoseon the look out for them and luckily many such
ways is through sports arbitrage. This practice hasopportunities arise each month in various places;
been around since the first bookies startedespecially in the financial market. So you have to keep
bookmaking. It has a fairly simple core concept and it isa sharp eye out and do your calculations quickly to
meant to make the betting situation absolutely safe forspot a possible arbitrage situation.
the bettor. It involves betting at multiple bettors withSo even though a lot money can be made and is
such widely varying odds in such a calculated mannermade from arbitrage trades every month, you have to
that no matter what the outcome is, you stand tobe very careful about the bets you place. You have to
make a nice profit.know exactly how much to stake and have to sure
This is really a perfect situation for bettors wherethat an arbitrage trade is favorable.