Arbitrage betting may sound complicated but it actually isn’t and it offers the best way of making money. So, what is arbitrage betting? In the business world, an arbitrageur would buy a commodity or currency at one price and immediately sell it at a higher price to a buyer elsewhere. When it comes to betting, arbitrage offers minimum risk and the chance to make profits long-term.
Arbitrage has been around since the very beginning. The rise of multiple bookmakers, of course, has made it even more popular. New arbitrage betting software now also makes it easier to apply.
Before we confuse you any more, let’s try to explain what arbitrage betting is, how it works and the best bookmakers for arbitrage betting in Australia.
Important facts to know about arbitrage bets:
Arbitrage or arbing is where a bettor takes advantages of the different odds offered by bookies to make a profit, regardless of how the game goes.
Also known as matched betting, a wager will need to be made on the outcome whilst also making sure that the combined bets are not going to lose money. The key is to use different bookies with different odds and an odds comparison website. It is profitable but you need to know what you are doing and to be prepared to wager large stakes to make profits.
The return on investment will add up. However, you also need to make the bets simultaneously so that the prices don’t change between making the first wager and the second.
Analysing the math:
If you were betting on a cricket match for a simple win or lose. You see that one bookie has the home team at 1/2 (or 1.5) and a second has the away team at 9/4 (3.25). By backing both bets, you will make a profit. First you need to work out how much to place on each. Firstly, decide how much money you want to get back and then divide that figure by the odds. If you want $500, you need to put $333.33 (£500 divided by 1.5) and $153.84 on the away side ($500 divided by 3.25). Your total stake is
487.17 and you are guaranteed to get $500 returned, so your profit is $12.83. Now that’s arbitrage betting explained, so where are the best places to bet?
Best arbitrage betting site in Australia:
Betfair is probably the leading arbitrage betting website in Australia, and one you will want to have if you are to start arb betting. It has an interesting article explaining arbitrage and, as the world’s largest betting exchange, it claims to have many features which are advantageous for arbing. It serves as an odds comparison service, which is handy for arbitrage, and you can see how much you are allowed to bet before placing the wager.
Pinnacle is also a great website for those looking to arb against other sites.
Arbitrage betting tips:
- Keep a detailed account of all bets, wagers and wins. You’re betting a lot of money for a small profit so you need to keep your books in order.
- Searching through several bookies to find the best odds can be time-consuming so arbitrage betting software can save money and increase profits. You can join an arbitrage betting forum to keep abreast of which bookies are the best for you. To decide who to join, see our Bookmaker comparison articles.
- If you don’t want to invest in software, you’ll need to use an odds comparison website to look at the market – and then react quickly before the odds move.
- You will need to open several accounts so you can make sure you have access to the best odds. Also, look for signing-up promotions at our Bonus comparison review.
- Download an arbitrage betting calculator app as your arbitrage bet finder to determine various strategies and reduce the risk of making mistakes by manually working out the stakes you need to win. It’s quicker too and time is of the essence in arbitrage wagers.
Now it should be clearer what is arbitrage betting and whether it is your thing. You’ll need to be serious about making money from gambling to be a successful arber. It’s time-consuming and you need to keep a cool head to decide where to wager and to make simultaneous bets.
The upside is that, if you play your cards right, you are guaranteed a win even if it is not much. If you need arbitrage betting explained to you in greater detail, we encourage you to do some research of your own.
Betting regularly with fairly large sums will mean you can accumulate a fair amount of money and have the satisfaction of beating the bookies. The way to simplify this form of gambling is by using software to with live feeds from many bookies so you can see which ones are the best to place your opposing bets plus an arbitrage betting calculator to see what you need to trade to make a profit. Good luck!