In the ever-evolving landscape of sports betting, certain strategies emerge that captivate bettors for their ingenuity and potential rewards. One such strategy is ‘Arbitrage Betting.' At HOFBets, we aim to explain this fascinating approach that can be utilized on anything from NFL player props and NBA picks and parlays to even more niche things such as table tennis.
Arbitrage betting is a betting system where a bettor takes advantage of differing odds at different sportsbooks to guarantee a profit regardless of the outcome of the event. It's like playing both sides of the coin, where, if done correctly, you win no matter what.
Arbitrage betting, also known as ‘arbing’, is another way of hedging a bet, but operates in a slightly different way.
This strategy can be particularly powerful when dealing with player props that have volatile markets or when looking at opening lines at different sportsbooks.
For example, let's say two different sportsbooks have different odds for the same game between the New York Yankees and the Boston Red Sox.
At one book, the Yankees are favored at odds of -110. Meanwhile at another book, the Yankees are listed as underdogs at odds of +115. The discrepancy is these odds allows for an arbitrage opportunity.
If a bettor were to wager $1,000 dollars across both sides of the bet, they could maximize their profits by placing $529.69 on the Yankees at -110 and place $470.31 on them at the second book at odds of +115, which would guarantee you a profit of $11.17 regardless of the outcome of the game.
Though this is a slim profit for a hefty wager, it is mathematically guaranteed that you would profit.
Though opportunities to arbitrage a bet are few and far between, they certainly do exist, often occurring in similar circumstances.
The most common is when shopping lines across multiple books. The more books you are looking through, the more potential discrepancies will exist. This most often will occur for bets that are less common, rather than for popular bets with large handles. When looking at the most popular bets such as NFL or MLB game lines, it will be rare to see such an occurrence, but if you are looking at more niche things, you are more likely to find one.
Beyond this, occasionally you will not have to look at a different book, but rather can rely on line movement to lock in an arbitrage. If you are getting a bet at its opening line, it is likely that it will move due to action on either side of the wager. If it moves far enough, there is a chance that you could find yourself with a potential to lock in a guaranteed profit.
Similarly, this can also occur when utilizing live betting. Even if you were not attempting to take an arbitrage bet, if you have taken one side of a wager and the game swings in such a way that the odds have shifted to the other side, you can hedge your bet to lock in a guaranteed profit in a similar fashion to a typical arbitrage bet.
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While arbitrage betting seems like a surefire way to profit, it does come with some inherent risks and potential consequences, especially from the perspective of sportsbooks.
Furthermore, the profit margins on arbitrage betting are often incredibly slim, meaning that in order to make considerable profits, the amount of capital that is required can become very high, raising the potential stakes of getting an account frozen or having an error in execution.
Arbitrage betting brings a potential element of financial security to sports betting. By exploiting differences in odds, it's possible to ensure returns, making it a valuable strategy if used correctly.
Arbitrage betting offers a unique approach to sports betting, allowing savvy bettors to minimize risk and secure profits. It's an intriguing strategy, applicable to various sports, from the most popular to ones that you may have had no idea are open for betting.
Stay tuned for more enlightening posts as we continue to delve into sports betting. If you enjoyed this piece, share it with fellow bettors, and let's all grow in knowledge. Happy betting!
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All odds in this article are from DraftKings Sportsbook.