Arbitrage betting has emerged as a popular strategy for gamblers seeking guaranteed profits. However, many remain unfamiliar with this betting system despite its potential benefits. This raises the question: what exactly is arbitrage betting, and how does it work?
If you want to learn about this betting system, you have come to the right place. Our comprehensive guide will help you understand arbitrage and how it works. We will also reveal how to calculate percentages, profits, and stakes.
What is Arbitrage Betting?
Often known as Arbitrage betting, this betting system is also called arbs betting, miracle bets, and sure bets. It involves betting on all possible outcomes of a single event with different bookmakers. Bettors who use this system try to exploit the discrepancies in the odds offered by different bookies.
When done correctly, arbitrage bets guarantee profit.
An arbitrage betting opportunity arises when sportsbooks can not agree on an event's outcomes. Usually, when this occurs, you will notice significant differences in odds value across different bookies.
You must identify the most contrasting odds across different platforms and place your bets.
For arbitrage betting to work, you must spread your bets across different sportsbooks. Betting on opposite outcomes with a single bookmaker won't guarantee a profit. In fact, it's the opposite. Sportsbooks set odds to ensure they make money regardless of the event's outcome.
So, they'd be happy to take your bets on both sides.
How to Calculate Arbitrage Betting
Calculating arbitrage percentages for event outcomes for one bookmaker often results in a percentage greater than 100%. However, the same outcomes from different sportsbooks should be lower than 100%.
The formula for calculating arbitrage bet percentage is:
((1 / decimal odds for outcome A) x 100) + ((1 / decimal odds for outcome B) x 100)
Let's look at the boxing match between Francis Ngannou and Anthony Joshua and see if there is a potential arbitrage opportunity:
Anthony Joshua to win: (1/1.21) * 100 = 82.64%
Francis Ngannou to win: (1/7.04) * 100 = 14.20%
Arbitrage % = 82.64 + 14.20 = 96.84%.
The 96.84% signifies that these outcomes are sure bet options.
How does Arbitrage Betting Work?
For arbitrage betting to work, you need at least two bookmakers offering different odds on the same outcome of an event. This allows you to place bets that guarantee a profit regardless of the result.
Take the table below as an example: It shows the win-outcome odds shared between Anthony Joshua (to win – 1.21) and Francis Ngannou (to win – 7.04) for an upcoming boxing match.
| Outcome 1 | Outcome 2 |
| 1.1 | 11 |
| 1.2 | 6.1 |
| 1.3 | 4.9 |
| 1.4 | 4.23 |
| 1.5 | 3.8 |
| 1.6 | 3.45 |
| 1.7 | 3.0 |
| 1.8 | 2.66 |
| 1.9 | 2.35 |
The presence of 1.2 and 6.1 odds on the table confirms 1.21 and 7.04 odds to be an arbitrage betting option. After confirming the opportunity to arbitrage, calculate if it is a sure bet option. Use the formula from the previous section to confirm.
You can also use arbitrage calculators to accomplish this objective.
How Much Can You Make Arbitrage Betting?
By now, you should be able to identify arbitrage opportunities and calculate the associated percentages with ease. The next step is to acquire the skill of accurately calculating your potential profits from staking on these identified outcomes.
The formula below is for profit calculation:
Profit = (Investment / Arbitrage %) – Investment
You can estimate your potential profit if your bankroll is N1000 and you want to explore the Francis vs. Anthony arbitrage bets. You must have calculated the arbitrage percentage beforehand.
Profit = (N1000/96.84%) – N1000 = N32.63
By placing a total wager of N1000, you will have a profit of N32.63.
You should know that all arbitrage bets result in 1% to 10% profits. So, to win big, you must stake big.
Beyond choosing your bets, you must also determine how much to wager on each outcome. To calculate the suitable stake amounts for each outcome, the formula to use is:
Individual bets = (Investment x Individual Arbitrage %) / Total Arbitrage %.
Francis to win = (N1000 * 82.64%) / 96.84% = N853.37
Anthony to win = (N1000 * 14.20%) /96.84% = N146.63
If you bet N853.37 on Francis Ngannou's winning, you will gain N32.63. You will realise the same profit when you stake N146.63 on Anthony Joshua's winning.
How to Find Sports Betting Arbitrage
Let's practice finding sports betting arbitrage by using a Horse Racing example. We are considering two bookmakers who have provided contrasting odds for a race with just two horses. The outcomes are Horse A to win or Horse B to win.
Horse A to win
In bookmaker 1 – 1.46 odds (67.6% win probability)
In bookmaker 2 – 1.38 odds (73.5% win probability)
Horse B to win
In bookmaker 1 – 2.75 odds (37.4% win probability)
In bookmaker 2 – 3.45 odds (30.8% win probability)
If arbitrage bets exist, the best options would be backing Horse A to win via bookmaker 1 and Horse B to win via bookmaker 2. Calculate the right stakes and stick with it. A massive bet is crucial to winning big from arbitrage bets since profits range between 1% – 10% of investments.
You can make arbitrage bets easier and faster by using bots, odds comparison websites, and arbitrage calculators.
What is Arbitrage Betting in Football?
Arbitrage betting opportunities also exist in football, following the principles outlined earlier in this guide. It simply involves exploiting the differences in odds offered by various bookmakers to earn sure profits on a football match.
Like other sports, you must identify arbitrage betting options for football games to take advantage of them. For instance, consider the betting odds for an upcoming football match between Chelsea and Arsenal.
First, check different bookmakers for a shift in odds value for selected outcomes. Once you identify a gap, proceed with the following steps:
- Calculate the arbitrage bet percentage from different sportsbooks (it should be lower than 100%)
- Calculate your potential profits from staking on these identified outcomes
- Calculate the suitable stake for each outcome
- Place your bets
Our website, EaglePredict, is famous for providing the best soccer bet predictions. With our forecasts, you can pick out the surest odds or events and see if there is an opportunity for arbitrage betting.
Conclusion
Arbitrage betting is a common strategy for racking up wins on sportsbooks. We have all the information you need to use this strategy and win bets in this review. We advise that you remain patient with your stakes.
However, ensure you wager huge amounts to enjoy Arbitrage betting fully. You can get daily surebet odds predictions on our website at EaglePredict.
