Arbitrary Betting at Betfair
Betfair is one of the few bookmakers which allow you to place arbitrary bets, also know as “arbitrage” or “arb” betting.
Arbitrary betting is when you are guaranteed to make money on the outcome of the event, by betting both possible outcomes. It’s called arbitrary betting because you are taking advantage of the odds set in the same market by different bookmakers, enabling to guarantee to make money. Arbitrage betting is completely legal however of course the bookmakers will want to ensure it doesn’t happen too often since that would mean they are over-pricing their odds a lot.
In order to place an arb bet, you’ll need to find laying odds shorter than backing odds for a two-outcome event e.g. a horse or dog race. You’ll also need to wager slightly more on the cover bet.
For example, let’s say that you get laying odds of 3:1 on a dog winning a race, and 3.5:1 covering odds of the same dog winning. If you wager £11 on the dog losing at 3:1 and £10 on the dog winning at 3.5:1 then if the dog loses you will make £1 profit (11-10). If the dog wins than you’ll make £2 profit (35-33).
Regardless of the outcome of the event you will make either £2 profit or £1 profit.
Tips for Arb Betting
First of all you’ll need access to a sports betting exchange which allows you to place lay bets. Betfair allows you to do this, however what makes Betfair even better is that their Fav V Fan Bettting system allows you to set your own laying odds. This allows you to receive much shorter odds than a conventional bookmaker would offer.
In order to make money in arb betting, you generally have to be willing to wager much larger amounts that ordinary fixed-odds bets. The profit margins are so small in arbitrage betting that you have to wager a lot in order to see a decent return. However this shouldn’t be a problem since you are guaranteed to make a profit and there is no risk involved in the transaction.
Finally, in order to find the best odds you’ll want to use some sort of odds comparison website or find the best betting lines. More arbitrage betting users will sign up to a plethora of sports betting websites in order to find the most favourable odds. You can also shop around on major sports events and use odds comparison websites such as OddsChecker.com to find the best deals.
Finally, remember to take advantage of the best sports betting bonuses and deals whenever you sign up to a betting site. These not only provide you free money but are also an alternative way of improving your profit margins and ROI since many bonuses provide money-back refunds across all of your first bets.