Arbitrage betting is a safe betting strategy that guarantees you to win, regardless of the outcome of a sporting event. People talk about winning less but consistently winning because, with sure bets, the winning percentage is always low, hopefully around 5% of the invested bankroll.
To make successful arbitrage bets, it is necessary to do extensive research. It is necessary to analyze the odds offered by different sportsbooks to locate differences in odds that can use to favor a betting arbitrage.
Based on mathematical analysis, this betting system is similar to investors in the exchange or traders. Arbitrage betting is not for everyone, although there are more and more automated systems that apply precise formulas so that more people can place safe bets.
But are arbitrage bets $100 safe? Actually, like any bet, this strategy also has many risks that you should consider. Below, we list the most common risks:
Calculating the odds for a successful arbitrage bet is not for novices. Besides evaluating hundreds of bookmakers to find the best odds, and verify if there is a chance for an arbitrage bet, you have to apply mathematical rigor.
You must calculate the Return on Investment (ROI), usually below 5%. If it is much higher than that, it would be a sign of risk of your arbitrage bet.
You need to apply the formula to calculate the Individual Percentage Arbitrage (IPA): (1 ÷ odds) X 100= IPA (for each final result).
Then calculate the Total Arbitrage Percentage (TAP), the sum of the two IPAs of each bookmaker involved in the arbitrage bet.
When any of these calculations fail due to human error, even if it is by a minimal value, your arbitrage bet is at risk because you can lose a lot of money on the spreads or even the total bet. Click to learn about NHL Sports Betting Arbitrage.
Changes in Odds
Since we cannot make arbitrage bets at the last minute, there is a risk factor of changing the odds. The analysis is made with anticipation, and if any last-minute factor allows the sportsbook to change the odds, this is a risk.
The profit of arbitrage betting is given precisely by taking advantage of the differences between different bookmakers’ odds. However, the difference in the odds is usually in a reasonably small range. When there is too much difference between the odds of the bookmakers, it is because there was a mistake.
Some bookmakers change the odds constantly or depending on the change of scenery, player injuries, sanctions, or other inconveniences. This risk is complex because the profit of the arbitrage bet depends on the difference in the odds. Read more about Betting Odds and Winning Percentages.
Differences in Betting Sites’ Rules
Remember that for your bet to be an arbitrage bet, you need to bet at different bookmakers. For this reason, you should be aware of all the chosen websites’ rules.
For example, betting limits are an essential point since some sportsbooks don’t allow high betting amounts, and since the profit on arbitrage bets is low, you are usually required to bet high amounts.
Reading the bookmaker’s rules is fundamental before starting your arbitrage bet to avoid them canceling your bet or don’t allow you to place the bet you need. To minimize this risk, you should inform yourself very well about the chosen bookmakers. Here are the best bookmakers in Canada.
Canceled or Void Bets
For your arbitrage bets, we always recommend that you choose reliable bookmakers such as Betway or Sports Interaction. Legitimate sportsbooks are much more reluctant to cancel a bet at the last minute, as they prefer to stand up for their reliability.
As arbitrage betting takes advantage of differences in odds for the same sporting event, some sportsbooks, upon realizing an error or spread, often cancel bets at the last moment. This would be a huge risk that would harm your safe bet.
Sportsbooks will always be on the lookout for safe betting strategies, which professional bettors usually apply. Upon detecting them, they may resort to the option of canceling the bet and even the account with which the bet is placed.
Fake Arbitrage Betting
Faced with the appeal of a safe bet through arbitrage betting, many platforms with little reliability offer data for arbitrage betting, which turn out to be unreliable or end up being scams. The risk is even more significant because you can probably lose your entire bankroll.
To minimize this risk, look for an automatic system for arbitrage betting, you should go for one that is reliable, that you have references, and that is from legitimate sites. Check out five tips to improve your sports betting
Is It Possible to Earn Lots of Money With Arbitrage Betting?
In arbitrage betting, the winning percentage is always minimal. It is estimated that below 5% is average. In this scenario, you must bet a large or constant amount of money to win like an expert.
Is Arbitrage Betting 100% Sure?
On paper, yes, but like all bets, they involve risks. If something goes wrong at the last minute, the bet can be affected, if not in losing your entire bankroll, at least in affecting the winning percentage you expected.
Do All Bookmakers Allow Arbitrage Betting?
No. Some bookmakers sanction this strategy, which is one of the risks because if they detect arbitrage activity, they can cancel your account.
How Can I Learn to Arbitrage My Bets?
This activity requires mathematical skills and detailed study of many sportsbooks to find the best odds difference, so it takes a lot of learning. However, you can help yourself with an automatic arbitrage betting software system.