All about Arbitrage

Online sports betting as we all know too well is about placing bets online, and winning.  Sadly for some of us success doesn’t come too easily nor do we interpret our system correctly to give us the success we deserve.

Today we’re going to take a look at a way of betting called Arbitrage.  Arbitrage is all about looking for guaranteed wins but we must admit it is not as easy as it sounds.  Arbitrage may sound like sure-win after we’ve explained it, but it dies carry a significant risk if you don’t take care as you are relying on the bookies not to make mistakes.

So? What is arbitrage?
An arbitrage bet is all about using multiple bookmakers to back the same team.  This gives us a guaranteed profit providing the bet doesn’t get cancelled and the bookmaker doesn’t make a mistake.

What are the drawbacks of online sports arbitrage?

A typical arbitrager will make maybe 4% or 5% at most when they use the arbitrage system, thus to make decent return, one has to invest significant amount of cash to ensure that he is in the winning.  This means you also need a significant start-up capital to learn the ropes and figure everything out.

Let’s look at an arbitrage example bet
we want $100 profit
Football Team1 = 1/5 (1.20)
Football Team 2 = 7/1 (8.00)

($100 / 1.20) + ($100 / 8.00)
    $83.33        +     $12.50        =      $95.83

So in turn – we now know we need to wager $95.83 to make $100 profit as you can see the return on investment is quite low.  But it does allow you guaranteed winnings if you’re lucky!

What do you think about arbitrage?