The first time I called my bookmaker to place a bet, I said to him to place five dollar on Chicago Bulls. Later, I just logged in to check my account and to my surprise I had two hundred dollars off my account. I called the help support to clarify the misunderstanding and it was then that I realized the importance of this glossary. If you call your bookie to place a dollar bet, that means a bet of hundred dollars. So, two dollar bet meant a two hundred dollar bet. I won so it was all the way sweet for me but you may not be that lucky!. Check out the following glossary so that you know how to talk the talk.
If you’re like me when you first saw the term 'arbitrage sports betting' you just said, “huh?” You may even be reading this article because you were wondering. It is a relatively little method that can actually allow you to make money no matter who wins or loses. Kind of like heads I win, tails I win!
Arbitrage is using the difference in markets in such a way that a risk-free profit can be guaranteed whatever the outcome of an event. In Sports Betting Arbitrage we are taking advantage of bookmakers differing opinions about the outcome of a sporting event to ensure a certain profit.
In the financial markets this may involve buying a commodity or financial instrument in one market and simultaneously selling the same commodity or financial instrument at a higher price on a different market to ensure a risk-free profit. In Sports Betting Arbitrage we are profiting from bookmakers having different opinions about the outcome of a sporting event.
There are literally hundreds of bookmakers in many countries and time zones competing for our business. Each specialises in particular sports and is more familiar with competitors from their own local area. To compete for global business they must offer a wide range of sports from all around the World often well outside their areas of expertise.
Often they are not aware of all the pertinent stats and facts particularly if the sport is not one they know well or the event is played overseas and they are unfamiliar with participants.
Prices may be based on the anticipated flow of bets rather than the probabilities of the outcomes. For example when England play soccer most bets with UK bookmakers will be supporting England. Bookmakers may offer the opposition at an inflated price to create a balanced book.
Offering so many markets bookmakers' odds compilers inevitably often may mistakes or are sloppy in pricing up an event. For example, in a typical week with four golf tournaments and a couple of tennis events bookmakers may have to price up 800+ outright odds plus over 400 matches just in these two sports alone.
One of the factors that can influence the outcome of your program is that many bookmakers set maximum stake limits which can keep you from placing your full wager, so make sure that there in no max limit with any of the bookies that you are dealing with.
Another issue that you must stay on top of is price fluctuations from the bookmaker. The prices for placing bets do not just change with different bookies but even with the same. You cannot take it for granted that the prices that are quoted in print like the Racing Post will be valid at the time of the event. With sports betting things can change very rapidly so be sure that the price will be honored before placing your bet otherwise this can seriously affect the outcome of your arbitrage sports betting.
Many bookmakers offer first time users a signup bonus in the range $10 - $200 for depositing an initial amount. They typically demand that this amount is wagered a number of times before the bonus can be withdrawn. Bonus sport arbitraging is a form of sports arbitraging where you hedge or back your bets as usual, but since you received the bonus, a small loss can be allowed on each wager (2-5 %), which comes off your profit. In this way the bookmakers wagering demand can be met and the initial deposit and sign up bonus can be withdrawn with little loss.
By signing up to various bookmakers, it's possible to turn these 'free' bets into cash fairly quickly, and either making a small arbitrage, or in the majority of cases, making a small loss on each bet, or trade. However, it is relatively time consuming to find close matched bets or arbs, which is where an arb / close matched bet service is useful.
As well as spending time physically matching odds from various bet sites to exchanges, the other draw back with bonus bagging / arb trading in this sense is that often the free bets are 'non-stake returned'. This effectively reduces the odds, in decimal format, by 1. Therefore, in order to reduce 'losses' on the free bet, it is necessary to place a bet with high odds, so that the percentage difference of the decrease in odds is minimalised.