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What is sports arbitrage?
You don’t have to be an economist to know that the world’s economy isn’t in the best shape right now. Between the gas crisis, the credit crunch in both the UK and the US, and real estate and stocks and just about every other traditionally safe investment in utter chaos, people are scared.
You might even be tempted to just flip out and stuff any money you do have under your mattress and then hope for the best. Unfortunately, even the cash you stuff away in a safe place isn’t safe anymore. We’ve seen faster inflation rates in recent decades than we have in a very long time.
What you should be doing is taking that cash and putting it into something that will make you more money.
But then… put that money into what exactly? Stocks? Investment accounts? Your pension? Honestly, that can be pretty hit and miss.
What smart investors are doing is looking for some form of alternative investment, something outside of stocks and real estate and so on, and one of these would be sports arbitrage trading
What is sports arbitrage trading?
sports_arbitrage_work_from_homeSimply put, sports arbitrage trading, also known as surebets, is a form of investment wherein you take advantage of the differing opinions from one bookmaker to the next.
Say a sports team from London is going up against a sports team from Berlin. Now, in London, you may get better odds on the team from Berlin, because the London bookmakers are going to be favouring their own team. However, the guys in Berlin are probably going to be favouring Berlin, for the same reasons. Now, say they’re both offering two to one odds on their own favourites.
This means you could bet, say, a hundred pounds on London with the Berlin bookmaker, and a hundred pounds on Berlin with the London bookmaker. No matter who wins, you’re going to win two hundred pounds and lose one hundred pounds.
Now, keep in mind that, in real life situations, you rarely see something like a fifty percent return. Rather, you can expect trades to yield profits from 1% to 5% on average, and now and then, perhaps as large a return as 20% for major sporting events, as was seen during the 2008 Beijing Olympics.
However, the point is that it’s a sure return. Arbitrage gaming really isn’t gambling. With traditional gambling, you invariably stand to either lose money or gain money. With arbitrage gaming, you only stand to gain money.
Let’s make it clear, sports arbitrage trading is not a get rich quick scheme.
Anybody who says they have a get rich quick scheme is probably lying.
There’s always a catch when you think that you stand to make a million bucks with no work.
This contrasts sharply with the reality of sports arbitrage trading.
Sports arbitrage trading is actually a form of personally-managed investment from which you stand to make a modest, but certain return. By reinvesting your gains back into your sports arbitrage business, you may make a lot of money over time, but you should be realistic when you first get started.
Where did surebets get started?
It’s hard to say where arbitrage in sports got started. It’s a little like asking who invented the wheel. However, the practice seems to have begun in Britain,where sports gaming is supported and, indeed embraced by the authorities and the legal and tax frameworks in place.goliath_surebet
Arb trading has pretty much always existed in some form or another, since the beginning of traditional gambling, really, from the first time a gambler noticed that one bookmaker was offering significantly different odds from another. The actual concept itself is basically common sense and it would probably be difficult to credit the discovery to a single person.
What’s more interesting is why this form of gaming is on the rise.
Part of the reason for the rise in the popularity of arb gaming is simply the Gambling Act of 2005. In 2005, the UK Parliament worked to clean up the gambling community, this allowed super casinos to be built, and this helped gambling to become safer for ordinary citizens to get involved in without worrying about legality or getting ripped off. Gaming was no longer a quasi-legal activity for seedy gambling addicts, but something that normal people could do for fun… or, as an incredibly safe investment.
The Gambling Act of 2005 also made it a lot easier for legitimate bookmakers to get into the industry. This means a more competitive market. A lot of bookmakers are actively trying to offer different or superior odds in comparison to their competitors, and this is good for the sports arbitrage trader.
Another contributor to the popularity of arb gaming would be the widespread use of high speed internet. This has really helped arb trading catch on around the world.
In the past, if you wanted to place a bet in, say, Scotland, and another in England at the same time, you either needed a private jet, or a friend in either location to place the bet for you, while you check in via telephone.
Now, using the internet, you can communicate with a network that can keep you up to date on safe betting opportunities around the world. You can place a pair of bets in a matter of minutes, and look around for the best deals.
What are the risks?
If you’re placing bets correctly? There are none.
That’s not to say there aren’t a few common mistakes, but they are easily avoided…
Personal Errors
It is possible to place a bet incorrectly. This usually only occurs if you are searching for safe bets manually and doing the calculation yourself. There’s always a chance of making some small error when calculating the odds and winding up standing to lose money. However, this risk is pretty much eliminated if you use arb trading software or websites.
Bet cancellation
Occasionally, a bookmaker will cancel a bet thanks to some error on their own part. If you don’t hurry up and place the bet again, you stand to lose as much as any old gambler. Once you’ve gained a little experience, you should know how to spot bets which tend to come with some risk of cancellation, and again, software and professional arb trading services can help you avoid this risk.
Currency Errors
You don’t really want to bet with American dollars on the one hand and Euros on the other. Even if the bet is safe, there’s a lot of fluctuation with currency these days. Try to stick with the same currency, or you might actually lose a marginal amount of money even when everything else goes off without a hitch.
Limitations
There’s a chance that, after you’ve been betting with a bookmaker for some time, they may start limiting the size or frequency of your bets, making it harder to make a comfortable profit per bet. This can be delayed by using certain precautions and worked around by arranging to have multiple accounts available to you by friends and/or family members.
Losing Money On The Transfer
Because the investment is safe, that means that the profits are modest. There is such a thing as a safe bet, but there’s no real get rich quick scheme. Therefore, if you’re not careful, you can actually see your gain eaten up by the costs of transferring money. For this reason, it’s important to pay attention to achieving efficient cash-flow management, allowing you to keep a significant portion of your winnings.
To sum it all up…
Economically, we don’t live in the best of times. Yesterday’s safe investments are today’s crazy houses, to put it mildly. The cost of living keeps rising, and more quickly than the year to year income growth. If you want to maintain your current quality of life, you have a couple of options…
1- Get a couple of credit cards, max them out, live beyond your means and go into debt, or…
2- Find a smart investment.toothfairy
That’s really all it comes down to. Arb traders aren’t thrill seeking gamblers or con-men, they’re just normal people trying to stay ahead of the curve. It’s as simple as that. If you are looking for a way to improve your quality of life, to stay on top of your living costs, arb trading is, at the very least, something worth looking into.
NEXT: Why become a sports arbitrage trader?
Further Reading…
You don’t need to be an expert on betting odds to make a nice, safe investment with arbitrage betting, but if you’d like to learn a bit more on the subject of gambling or safebetting, here are a few sites you can check out…
Here at Betbubbles.com you’ll find a pretty comprehensive explanation of the actual mathematics of arbitrage betting.
http://www.gamblingcommission.gov.uk/Client/index.asp
The official site for the UK Gambling Commission. Now, arbitrage gaming was possible before 2005, but the UK Gambling Commission really did help to make the whole thing safer, and to remove some of the social stigma attached to sports betting. If you’re interested in studying up on the legality of arbitrage gaming, this site may be of some help.
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7 Juli 2019
| sports
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