What Is ‘Arbitrage’ (Betting)?
An arbitrage bet (also known as ‘arbing‘) is when a punter bets on both sides of a sporting event in order to guarantee a profit regardless of the outcome. It is not as widely used as it used to be due to increased competition in the betting markets.
Also, it requires a lot of research and knowledge of the betting markets, which can be difficult and time-consuming. The margins on arbitrage bets are also getting narrower, making it less profitable.
Lastly, arbitrage betting is often considered to be unethical by many, as it involves taking advantage of the mispricing of odds.
- A bettor notices that one bookmaker is offering odds of 1.50 on a team to win, while another bookmaker is offering odds of 1.60 on the same team to win.
- The bettor then places a €100 bet on the team to win at the bookmaker offering the higher odds of 1.60.
- The bettor then places a €50 bet on the same team to lose at the bookmaker offering the lower odds of 1.50.
- If the team wins, the bettor can collect €160 from the first bet and the €50 stake from the second bet, giving them a €110 guaranteed profit regardless of the outcome.
Did You Know
Sportsbooks allow arbitrage betting because it is an efficient way for them to balance their books. By allowing punters to bet on both sides of a game, the sportsbook can ensure that they are not stuck with too much money on one side or the other.