Arbitrage betting is the term used to describe what happens when a bettor uses a system that exploits differentials in odds for a specific market with two or more bookmakers. This strategy guarantees the bettor a profit as the combined odds produce a negative margin, which is a margin that works in the bettor’s favor. This strategy reinforces the idea that it makes sense to sign up with multiple sportsbooks in order to keep an eye on lines and make sure you are constantly finding the best values that are available. Here is a look at the basics of the Arbitrage betting strategy and how to use it to your advantage.
The best way to describe how the Arbitrage betting system works is to use an example. If Sportsbook A has the Tennessee Titans listed at +120 to beat the Indianapolis Colts at home because it’s a close matchup and they are getting more action on the Colts but Sportsbook B actually has the Colts listed at +120 because they are getting more action on the Titans then you have the perfect opportunity to make some money. If you risk $200 on Tennessee with Sportsbook A and you risk $200 on Indianapolis with Sportsbook B then you have created a situation where you are guaranteed to win $40 regardless of the outcome. The $40 profit comes from the fact that the winning wager amount cancels out the losing wager amount regardless of which side wins with the extra $40 left over since both teams were listed at +120 with one of the sportsbooks. This principle can apply to any betting market where you find a difference in the betting odds that can be exploited to your advantage.
It’s important to understand the potential negatives when it comes to Arbitage betting including the fact that some sportsbooks will notice situations where they made mistakes on given lines and cancel them right before the actual games are made. In order to fully take advantage of the potential for Arbitrage betting systems you also have to constantly follow lines at multiple sportsbooks in order to find out where the best value is. Bookmakers are constantly changing their odds in order to avoid these types of situations and they monitor other books as well to make sure this sort of thing doesn’t happen very often.
While the positives of Arbitrage betting remain very obvious it isn’t always easy to find the best possible situations to win. It can take up a ton of time following the different sportsbooks looking for potential loopholes but by staying on top of the numbers you can find situations that could be beneficial to you. It might not make sense to be constantly searching for the opportunity to use an Arbitrage but it’s definitely something to keep in mind when looking for the best odds for any given wager that you have in mind.