Arbitrage betting is when punters guarantee a win by placing multiple bets on a match at two or more bookmakers. Bookmakers have their own unique odds that may vary from one to another that enables punters to secure wins by placing opposing bets on the same match.
The advantage of arbitrage betting is that it provides the opportunity to place bets that result in guaranteed wins. Although the winnings would be small, over time they may generate significant profit. On the other hand bookmakers are always on the lookout for punters that are leveraging arbitrage betting therefore it is important to use multiple bookmakers and to be aware about there stake limitations.
Example of an Arbitrage Bet
Let’s take as an example placing bets on a football match, Norwich vs Arsenal.
Bookmaker 1 has odds of 7.00 on Norwich to win whilst Bookmaker 2 has odds of 17.00 on a draw and Bookmaker 3 has odds of 1.30 on an Arsenal win. By placing the below bets the punter is assured a guaranteed win whatever the result of the match. The total outlay is that of €970 with the win in all outcomes being greater. The most profitable outcome would be a draw as it would secure a €50 profit. A Norwich win would secure a €10 profit whilst an Arsenal win would secure a €31 euro profit.
7.00 x €140 = €980
17.00 x €60 = €1020
1.30 x €770 = €1001