Posts Tagged ‘lay bet’

Arbitrage Betting

The aim of sports betting online is to make money however nowadays with the advent of hundreds of bookies offering odds in the same market it’s now possible to do something called arbitrary betting.

Arbitrary betting involves taking advantage of different markets and placing bets for the outcome of all events to guarantee you a profit on the outcome of a race. To place an arbitrary bet, all you need to do is place a straight forward bet, and then find a bookie that will give you laying odds shorter than that bet.

For example, let’s say that I’m betting on a horse race. If I place £10 on horse A to win at 4.0, and then find a bookie that allows me to lay horse A (i.e. bet against him to win) at 3.5 for £11, then I’ll make a profit regardless of the outcome.

If horse A wins, then I’ll make £1.50 profit (£40 – 38.5), where as if horse A loses, I’ll still make £1 profit (£11 – £10).

The beauty of arbitrage betting like this, which is also known as “trading” is that it’s impossible to lose money. The trick to arbitrary betting is to find a bookie that has overpriced the odds of something happening, and then laying that bet with shorter odds.

Arbitrage Betting Tips

In order to place an arb bet and make serious profit, you need to be placing much higher wagers than conventional bets. This is because the margins for profit are obviously a lot lower. Most arb bets tend to be worth over $200 to make any real money from it.

Another essential part of arb betting is that you need to be able to place a lay bet. Not all sports books and bookies allow you to do this. Bet365 and Bodog for example don’t provide lay betting as an option. You can however sign up to a sports betting exchange such as Betfair, which not only allows you to lay and cover individual events but also lets you set your own laying odds in the Fan Vs. Fan betting markets.

This inevitably leads to you receiving shorter odds and higher profit than most betting exchanges. In fact, betfair also released a new iPhone betting application which enables you do bet across all of their sports betting and trading markets from your mobile.

A tip for placing laying odds is that you don’t want to place any bets where the odds are too high as this will increase your liability and risk exposure. I generally like to keep my laying odds in between 1 and 3.0. If you decide to place a laying bet of £10 with laying odds of 13.0 for example, then for every £10 you can win you’ll have to risk £130. This blatantly isn’t worth the risk in terms of the payoffs.