Arbitrage Betting Guide

Written on March 16, 2009 by Laymybet.co.uk

Arbitrage Betting, also referred to as Arbitrage, Arbitrage Trading, Betting Arbitrage, Matched Betting, Scalping or Sure bets is a betting strategy where the aim is to cover every possible outcome of a sporting event with the intent on leveraging a guaranteed profit.

Arbitrage betting is similar to the concepts of buying and selling shares on a stock market. Presuming you bought shares at a lower price than what you sold them for then you’re guaranteed to achieve a profit. Conversely, when you Back a sporting event outcome you’re selling your position / shares and when you Lay a sporting event outcome you’re actually buying a shares / a position in the market.

Bookmakers, for example, take a favourable position in the market by laying odds on sporting event outcomes in their favour. The bookmaker will attempt to achieve an over-round (profit percentage) on the volume of bets they accept with the aim of making a profit from the punting / gambling community.

An over-round set by a bookmaker greater than 100% means that it is impossible for a punter to back all sporting event outcomes and achieve a profit. If the over-round is 115% then the bookmaker will make 15% profit on all bets they accept. For instance, if a bookmaker were to accept £100,000 on a sporting event then the bookmaker would end up earning £15,000 in profit. This was achieved because the bookmaker has the ability to set odds in their favour.

However, an over-round of less than 100% means that it is possible for a punter to back all sporting event outcomes and achieve a profit.

Over-rounds of less than 100% are often achieved when bookmakers compete for punters money by increasing the odds on offer. Odds will always fluctuate on a sporting event and when the over-round drops below 100% – using the combined odds of various bookmakers – there is potential to begin arbitrage betting.

Arbitrage Betting Example

Below is a typical arbitrage betting example. You’ll see different odds being offered by separate bookmakers on the same sporting event:

Ladbrokes

Outcome A: Evens (1/1)
Outcome B: 1.90 (9/10)
Over round: 102%

Paddy Power

Outcome A: 1.80 (4/5)
Outcome B: 2.20 (6/5)
Over round: 101%

Both Ladbrokes and Paddy Power have priced up the particular sporting event in their favour but are divided as to who is the favourite. If you were to back the best prices on offer (Evens on Outcome A and 6/5 on Outcome B) then you’ll guarantee a profit as the over-round only adds up to 95.45%. That’s equivalent to a potential profit of £46 per £1000 wagered – all in the punters favour.

Ladbrokes
Outcome A: Back £500 @ Evens (1/1) = £1,000 Return

Paddy Power
Outcome B: Back £454 @ 2.20 (6/5) = £1,000 Return

Total Outlay: -£954
Total Return: £1,000
Total Profit: £46

Wouldn’t it be great if every bet you placed returned a arbitrage profit like this? Simply compare odds of the leading bookmakers and back the appropriate amount to guarantee arbitrage. Arbitrage betting involves the comparison of odds between bookmakers (and/or betting exchanges) to find the best odds available that will guarantee a sure bet profit.

Arbitrage betting services such as UCantLose offer email updates of potential arbitrage betting opportunities but it can be best to try arbitrage betting out on a betting exchange yourself first.

Betting exchanges allow you to back and lay a sporting event outcome where the odds often fluctuate – similar to bookmakers. Attempt a small Back and Lay (using stakes as low as £0.50 if desired) to see if you can Back at higher odds than you can Lay. Consider joining Betfair, Betdaq or WBX as these as the most popular betting exchanges.

Arbitrage betting on a betting exchange is also referred to as ‘greening up’ or to ‘green up’.