In 2021, the sports betting industry accounted for $194.63 billion in the gambling market worldwide. And it is expected to increase to as much as $10 billion by 2028. With these figures, it is unsurprising that many gamblers will devise ways to get an advantage in the SG pool odds.
One of the methods used to get an edge in online sport betting Singapore is arbitrage betting. It occurs when a player bets on all possible outcomes and makes a profit regardless of the winner. By using the arbitrage betting formula, gamblers can determine and maximize their potential betting profit.
Some sports betting strategies are risky, while others have been mathematically proven to win in the long run. Arbitrage betting falls under the latter category. If you’re seeking assured profits, continue reading.
What is Arbitrage Betting?
The term “arbitrage” refers to the simultaneous purchase and sale of assets. It applies to the real estate sector, stock market industry, and, most significantly, the gambling industry. Arbitrage betting, also known as “sure bets,” makes money by covering all possible event outcomes. Arbitrage bettors compute the optimal combination of odds and wagers to ensure a profit. These combinations are called arbitrage betting opportunities.
How can you Identify Arbitrage Betting Opportunities?
Sports betting arbitrage has been an effective way to minimize losses and make profits. Different bettors aim to expand their betting experiences to find arbitrage opportunities. Here are the basic steps for identifying these.
Step 1: Look for an odds comparison site such as Oddschecker and find an event that offers two outcomes.
Step 2: Identify the highest odds for each outcome.
Step 3: Determine whether the odds allow arbitrage betting.
Step 4: If yes, calculate the individual stakes required for each bookmaker. Then, place each of your bets.
How to Get Your Arbitrage Betting Profit?
As an arber, you need to find the highest odds offered by different bookmakers. It is necessary for spotting arbitrage opportunities and ensuring that you are making the right bets. Unlike typical sports betting, arbitrage betting requires basic math to guarantee that your stakes are risk-free and profitable. Here are the process and examples of calculating sure bets.
1. Similar to identifying arbitrage betting opportunities, you need to find an event that provides two outcomes.
Example: Bookie A – 5.1 for the team to win
Bookie B – 9.3 for the team not to win
2. Choose an amount that corresponds to your preferred final winnings.
3. Using basic math, divide the amount by each odd. Then, the answers will be your basis for determining how much to bet on each result.
Example: Bookie A – $70/5.1 = $13.73
Bookie B – $70/9.3 = $7.53
4. Get the sum of each result.
Example: (Bookie A) $13.73 + (Bookie B) $7.53 = $21.26
Therefore, your investment or outlay is $21.26.
5. As long as the profit target is bigger than the investment, this qualifies as arbitrage. In the example above, $70 exceeds $21.26, so it can work as an arbitrage bet.
6. If the calculations are accurate, the profit will remain constant regardless of the outcome. It means no matter the result, you will still win $70.
What size of bankroll should you start arbing with?
You can practice sports arbitrage at no expense. If you wish to start ‘real money’ arbing, you can deposit money with bookmakers at a level that suits you and get started. With a net worth of less than $5,000, real money arbing can yield thousands of dollars in profits. But you might run into additional obstacles, including:
- You must not exceed your betting limits
- No-arb day when funds are being moved from winning to lost bookmakers
- A good arb-finding alarm service can cost you more than $200 per month. Your profits from free alerts are much lower.
- Low visible profits per arc can dampen your enthusiasm.
Is Arbitrage Betting Illegal?
Arbitrage betting is not prohibited by law. However, bookmakers discourage this strategy as people take this as an advantage to make a consecutive profit. While it is technically impossible for operators to confiscate your gains, they will attempt to enact penalties, which include:
- Limiting your stakes
- Cancelling the wager
- Shutting down the betting account
Because arbers threaten bookmakers’ earnings, encountering them is a significant concern for betting operators.
Threats Behind Arbitrage Betting
1. Human Error
Bookmakers sometimes make unexpected errors, which can negatively affect your betting habits. They can cancel the wager and return the stake if they discover it early. However, others can allege fraud and confiscate the stake.
2. Unaccepted bets
Before you place a wager, the bookies may disable the bet slip if they detect a disparity in the odds value. In such situations, you miss out on the marginal expectation and could be banned. It is a regular occurrence on betting websites that prohibit arbitrage wagering.
3. Rules Variations
As arbitrage sports betting grows in popularity, bookmakers establish gaming guidelines to regulate its use. Each bookmaker has strategies that deviate from the standard concept of arbitrage betting. Any other method from the established rules constitutes a violation.
4. Bets are voided
The bookmaker can cancel a wager if they observe any irregular behaviour. It applies primarily to sportsbooks that have not adopted arbing. If you show misconduct, they can suspend, blacklist, or deregister your account for violating the terms of service.
5. Change in Odds
The odds are updated in real-time. If you delay putting your wager, the bookmaker may alter the odds, disrupting the arbing anticipation. Additionally, bet only when you are confident in the odds margin.
Betting is a game that employs probability to narrow down the possible outcomes. As technology advances and bookmakers expand their gambling options, bettors can utilize arbitrage betting to confirm their wagers. Sure bet enables online gamblers to recover their wages regardless of the outcome. Players also continue to use this strategy even if most sportsbooks and online casinos do not permit arbitrage betting.
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Read more: Top 3 Advanced Sports Betting Strategies to Make a Profit