Arbitrage betting, or “arbing” as it is often referred to, is a type of betting strategy where a bettor prices a gap between the possible outcomes of an event at different sportsbooks in order to assure a profit. This happens when different sportsbooks start offering different odds on the same event. It creates a pricing gap that bettors can take advantage of.
The concept seems simple; however, the reality is more complex than it initially appears.
How Arbitrage Betting Works
Arbitrage betting is based on the odds of various sportsbooks. The result of the collision is that when the odds taken together yield a situation in which everything is an outsider and still comes back with more than the sum of the odds, then an arbitrage play can be made.
For example, if one sportsbook is going to reserve higher odds for Team A in a game, but they will have higher odds on Team B, a bettor can place a wager on both sides. In both cases, whoever wins, the payout is greater than the amount that was won.
These kinds of opportunities come up often for very short periods of time, in particular before the odds are correct.
Why Arbitrage is Attractive to Bettors
The biggest draw of arbitrage betting is the promise of low-risk profit. Unlike conventional betting, success is not based upon predicting the winner, or rather, not. Instead, it has to do with maths, managing time, and having access to several sportsbooks.
Many bettors are fond of arbitrage as this removes any kind of emotional decision-making and is based on numbers rather than opinion or prediction.
The Real Dangers That Come With Betting On Arbitrage
While it’s commonly known as “risk-free,” arbitrage betting is not without its own share of practical risks that may affect profitability.
Odds can change very quickly, and before everyone has placed their bets, the guaranteed profit can disappear. Sportsbooks may also restrict/restrict your account if it is seen that you use arbitrage strategies regularly, and especially if they notice patterns.
Another difficulty is the restrictions on the stake. There are some sportsbooks that put a limit on the amount you can gamble when playing on certain markets, so it will be more difficult to scale profits. Withdrawals and verification waits can also be a source of binding of funds, decreasing flexibility.
Is Betting for Arbitrage Profitable in the Long Run?
Arbitrage betting usually makes tiny profits with each bet. For such bettors to make meaningful returns, they must require huge bankrolls, quick execution, and constant interest in odds.
With time, the effort involved may exceed the rewards for bettors who are not serious. It may also result in betting being a high-maintenance exercise rather than having an enjoyable experience.
Who Should Consider Arbitrage Betting
Arbitrage betting is more for experienced bettors with the patience to cope with multiple accounts. It’s also for bettors who are comfortable working with high-paced odds tracking and small odds margins. It is not as good for beginners, who have to learn the workings of the sportsbooks more.
Conclusion
Arbitrage betting can work, but it is not an easy way. Also, it requires proper bankroll management, which the majority of bettors ignore. For most of the player base, it can be argued that value betting, as well as proper bankroll management, are more sustainable avenues than betting on arbitrage opportunities.