Today I will be writing an article about arbitrage betting. Some people will be familiar with this concept and some people will not be. What is arbitrage betting?
Arbitrage betting is placing a number (2 or more) of bets on the same event to ensure a profit no matter what the outcome. We do this by capitalizing on the difference in bookmakers odds. The best way I can show you see this is on the upcoming UFC bout between Jon Jones and Chael Sonnen. I will use the American system of betting odds as it is fairly simple to demonstrate.
Last week Chael Sonnen was available to back at +760 on Sportsbet whilst Jon Jones was available to bet at -650 on Sportsbook. Wagering $100 on Sonnen would return $760 whilst wagering $650 on Jon Jones would return $100. This would leave us with two outcomes. A Sonnen victory would return $760 from his victory and lose us the $650 on Jones showing a total profit of $110, A Jon Jones victory would lose us the $100 on Sonnen but return the $100 on putting us break even. So effectively we get a free bet of $110, you would need a to wager $750 but there is virtually no risk to this money.
I say virtually no risk because in MMA there is a small chance of a draw and depending on the bookmakers rules this could lose you your stake. In a five round fight between these two competitors I would say that a draw happens less then 2% however it is still a possibility so what could we do to overcome this small obstacle. Judging that Jones number at least -800 upwards on most other sites we could have backed him at -650 and then looked to lay (If you are unfamiliar with lay bets click here) him on a betting exchange such as Betdaq or Betfair nearer to the time of the fight where we would expect his odds to be inline with most of the other bookmakers at around -800. All the betting lines can be verified here http://www.bestfightodds.com/
Arbitrage betting can be a great way to make some risk free profits if done correctly. I would recommend the following sites for more information on arbitrage betting: This site has a great free ebook which covers arbitrage betting and how to prolong your arbitrage betting against bookmakers limiting or closing your account http://www.laybackandgetrich.com/ . This site features new arbitrage bets on a daily basis http://www.oddsportal.com/sure-bets/
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