Can You Make A Living Through Arbitrage Betting On Sports?

Though becoming an arbitrage bettor seems like a great career choice, it’s not as easy as it looks on paper. For a start, the bookies will hate you. In fact, if they spot a betting pattern indicating you’re using arbirage betting strategies, you’ll be banned. And they’ll spread the word to other online sportsbooks. Furthermore, you need a pretty hefty bankroll to begin with.

Is Pursuing Arbitrage Betting Worthwhile?

In the world of sports betting, arbitrage involves strategically placing wagers on all sides of an event, leveraging the right combination of odds and stakes to make a profit regardless of the event’s outcome. The essence of arbitrage is akin to ‘sure betting.’ That is offering the promise of minimal risk for seasoned arbitrageurs and the prospect of long-term, guaranteed profits.

Could this be the closest one can get to achieving the coveted “Holy Grail” in the world of betting? Or perhaps not? Despite the enticing rewards, the global community of professional sports arbitrageurs remains relatively small, numbering in the tens of thousands at most. To put it into perspective, the German stock market employs over 3,200 personnel, while one of the largest automated arbitrage service providers, RebelBetting, boasts even fewer subscribers than this figure.

So, why does such a modest group of individuals take advantage of the so-called ‘guaranteed’ gains, typically averaging between 1.5% and 3.5% per bet (with a typical ‘arb’ offering around 2.5%), potentially yielding 15-25% in monthly profits on the capital invested? This is a considerably higher reward than what any bank, building society, or share dividend can offer!

The Legality Of Arbitrage

There is no doubt that arbitrage is entirely legal. In truth, arbitrageurs are merely exploiting price differences in the market. They are merely engaged in buying and selling (bets) much like any trader would. According to online sportsbook news in the UK, there’s nothing unlawful about this practice.

However, it is understandable that bookmakers are not particularly fond of arbitrageurs. Every company has the prerogative to decide who its customers should be. And many bookmakers choose to exclude arbitrageurs from their clientele. As soon as suspicion arises, bookmaker acounts are swiftly limited or even terminated. However, with that said, 22Bet Sportsbook has never been known to close the accounts of arbitrage bettors.

Arbitrage Betting: Capital Demands And Personal Attributes

Successful arbitrage betting offers steady but modest returns. However, they demand a substantial initial investment. The invested capital remains tied up for extended periods. For instance, to secure a monthly profit of 5,000 € with an average 2.5-3.0% return per betting round and a goal of 15-25% monthly return on capital, an ‘arber’ requires an initial bankroll of at least 25,000 €.

This initial requirement can be daunting. As such, this makes entry into the arbitrage arena impossible for many. Although arbitrage betting is relatively low-risk, it requires not only financial resources but also specific personal attributes. Let’s have a  look at some of these in more detail.

• Extensive mathematical calculations.
• Thorough and meticulous record-keeping.
• A high degree of discipline and consistency.
• A stable, fast, and reliable internet connection with unrestricted access to bookmakers and exchanges worldwide.

However, the average bettor may not approach it as a “professional” investment. But as a source of entertainment and the thrill of wagering on an event. While they hope to profit from their bets, they primarily engage in gambling rather than investment, which could explain the limited number of ‘arbers’ in the market.

Sports Arbitrage Betting – Costs And Earnings

Despite being termed “risk-free,” arbitrage still carries some degree of risk. Keep in mind that a single failed ‘arb’ can wipe out the gains from approximately 20 successful ones. Therefore, it’s advisable to limit each arbitrage trade to no more than 5% of the available capital. With a total working capital of 25,000 €, this means allocating around 1,000 € per arbitrage opportunity, yielding profits ranging from 20 to 35 € per trade.

The Difficulty Of Making A Living From Arbitrage Betting

To see a monthly profit target of 5,000 €, approximately 250 successful arbitrage trades per month are necessary. Assuming 20 working days per month with sufficient opportunities to trade, this translates to around 12 trades per day. This also includes the tasks of recording, accounting, and monitoring. Professional arbitrage betting is undeniably a full-time occupation. Prospective professional arbitrageurs must consider several other factors:

Ideally, the residence of an individual pursuing sports arbitrage, often referred to as an “arber,” should be in a country where betting and the use of betting exchanges are legally permitted. This occupation inherently leans towards an antisocial lifestyle, demanding extensive computer hours, possibly during unconventional hours of the day or night. Achieving substantial, tax-free arbitrage profits typically necessitates several years of experience. This can culminate in a level of knowledge that can finally support a comfortable annual income ranging from €50,000 to €70,000.

Determining whether this level of financial gain justifies the effort and sacrifices required, or if it constitutes genuine success, is a deeply personal choice. Consequently, the pursuit of sports arbitrage betting’s worthiness is very much dependent on your individual preferences and objectives.

Arbitrage Bettors Have To Keep Their Heads Down

Arbers may find it necessary to operate discreetly, avoiding the attention of most bookmakers. Only a handful of bookmakers openly welcome arbers as customers, and 22Bet Sportsbook stands out as one of the few reliable options.

Consequently, adopting a strategy that allows you to stay “under the radar” of most bookmakers may become essential. This can involve using a friend or family member as a “front,” registering with bookmakers under different names and/or IP addresses. While there might be other methods to conceal your true identity from bookmakers, it’s important to note that such approaches are likely to heighten both your risks and expenses.

The most severe consequence entails the bookmaker closing your account, a situation that can be exacerbated if they opt to withhold your account balance on the basis of rule violations. This dilemma leaves you uncertain about how to reclaim your funds and may subsequently lead to multiple bookmakers refusing to take your bets, complicating your return to the online arbitrage arena.

Final Thoughts – Arbitrage Betting Is Not Easy

In conclusion, the arbitrage market is relatively small in scale. Currently, there are approximately 500 online bookmakers, with only about 50 being significant players. The majority of the best online sportsbook sites in the UK are not inclined to have arbitrage bettors as their customers. Engaging in arbitrage is a delicate balancing act, as you pursue a perfectly legal endeavor while being treated as an unwelcome customer.

Furthermore, the potential earnings are limited, typically ranging from 50,000 to 70,000 euros per year due to various factors such as bookmaker stake limits, personal capacity, betting bank size, time constraints, and more. Before embarking on an arbitrage venture, carefully consider whether investing your time and effort to learn and master it is a wise choice. There are alternative paths to acquire new skills and generate income in a socially acceptable manner.

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