Arbitrage Trading

It's amazing how many people don't know about sport arbitrage in the U.S. considering how popular it is throughout Europe and Asia. It refers to an opportunity that allows even someone with literally no knowledge of gaming or sports to make profit with little risk. How?

There is software that exists that goes out into the gaming industry "for you" to find "arbitrages", or mismatches in bookmaker odds. Yes, because two different bookmakers offer odds that are quite different on the same event, an earning opportunity is created. Here's how it often works....

The software alerts you to an arbitrage situation. Hypothetically, let's say you had $500 working capital. You might place a bet of $200 on team A and a bet of $300 on team B. Because of the "arbitrage", the software will tell you what profit you will make on the completion of the event, no matter which team wins! Team A wins and you make $500 + profit. Team B wins and you make $500 + profit. Sounds crazy, I know, but it's true!

The amount of profit on any one arbitrage opportunity often varies anywhere between 2 and 10% per arbitrage. Can you imagine placing a bet knowing that you will win every time? And you know what your profit is going to be BEFORE you even place your bet!!

Be careful though. Some bookmakers are less than reputable, and don't trust every arbitrage software package you see. Some don't work! Others are slow or not accurate in their reporting.

This is an area we will be following more closely as the U.S. continues to crack down on online betting.

Matt Gagnon