tatically arbitrage refers to the expected profit after expected losses are taken into account. If one is clever with their money, there is profit to be had in betting arbitrage. In bettor’s language, arbitrage is usually called an “arb” and those placing arbitrage bets are called “arbers.” Large amounts of money are usually involved in arbitrage bets. For the person who wants to be really clever with their money, betting investment may be a better route. When betting investment the bettor places small amounts of money on over-valued odds. Most bets will be losers but some do win, and the clever money manager will make a profit.
Betting arbitrage, also known as sure bets, or miracle bets, is betting on markets based on the bookmakers differing opinions on an event. The person betting arbitrage places one bet on each outcome with different bookmakers. Generally bookmakers will offer Clever different odds on the same event within a few percentage points. The difference is small, but if the arber is clever and spreads the money over all possible outcomes with different bookmakers, he or she can be assured of a risk free profit. Everyone will make a profit betting arbitrage as long as the person placing their clever money bets does so with different bookmakers. Typically arbers will place arbitrage bets at around 4% but special events that have a big draw may reach as high as 20%. One of the quickest ways to make a good profit was created in the United Kingdom. Sports arbitrage employs “key men” who then employ others to place their bets for them. By employing “key men” they avoid detection by the bookmakers who may not appreciate their clever money manipulations. The sports arber may then track all of his or her bets from their computer and are not detected.
It isn’t easy to engage in sports arbitrage especially on the Internet. Internet bookmakers all offer odds on the same game. They weigh their odds so that no single customer can cover all possible outcomes for a profit. Bookmakers keep their margins low so that they can realize a profit. If a arber is clever with his or her money, he or she can cover all outcomes and lock in a risk free profit at between 1% and 5%. This is known as a “Dutch Book.” But, bookmakers sometimes make mistakes when setting odds. When they discover the mistake they will invoke the rule of “palpable error’ which allows the bookmaker to correct the odds. When this happens, the profit even for a clever arber dissipates. Bookmakers are becoming better and better at setting odds so the arber must cover all outcomes within about an hour or less. The system is tipped in favor of those with the know-how and fast computers. If you want to make some quick, clever money by taking advantage of the small differences between bookmaker odds, you have to be fast.