Sports Arbitrage Betting – Cost and Effectiveness
Although arbitrage is legitimately described as “risk free”, it is still not absolutely free of risk as our article risks of arbitrage betting and solutions explains.
One ‘arb’ gone wrong can cost the profits of approx. 20 successful ‘arbs’. Therefore no more than 5% of the available capital should be used per arb. This means that of our total working capital of 25,000 €, approximately 1,000 will be employed per arb, earning between 20 and 35 € each time.
Do not underestimate the effort necessary to live from arbitrage betting!
To achieve a profit target of 5,000 € monthly, approx. 250 (!) successful arbitrage trades per month are needed and assuming 20 working days per month (with enough games to trade), around 12 trades per day are necessary, including recording, accounting and monitoring. Professional arbitraging is definitely a full-time occupation.
In addition to the time requirements, for anyone thinking of becoming a professional arbitrageur several other considerations need to be made:
- The arber’s place of residence should ideally be in a country where betting and the use of betting exchanges is actually permitted.
- By its very nature the job is anti-social and involves long hours on the computer, perhaps working at odd times of the day (or night).
Attaining significant, tax-free arbitrage profits usually takes several years of experience until a knowledge level is reached where a comfortable living can finally be made.
Here, we are talking about an annual income in the region of 50,000-70,000 €.
Whether this level of fortune is worth the effort and the sacrifices necessary, or if it represents success at all, is down to the individual to decide.
It is therefore a very personal decision if sports arbitrage betting is actually worthwhile pursuing…
Arbers may need to act below the radar of most bookmakers
There are very few bookmakers who openly welcome arbers as customers and Pinnacle Sports is one of the few we can name with any confidence.
Therefore, it may be necessary to act below the radar of most bookmakers and use a friend or family member as “a front”. In other words, registering with bookies using different names and/or different IP addresses.
There are probably many other ways to fool bookmakers regarding your true identity, but any such method is likely to increase your risks and costs.
The ultimate penalty is having an account closed by the bookmaker. This could be made worse if they decide to retain your account balance on the grounds that you have broken their rules and regulations, leaving you in a quandary of how to get it back. This in turn could result in several bookmakers black-listing you, making it difficult to re-enter the arbitrage arena online.
The market place for arbitrage transactions is comparatively small. There are currently around 500 online bookmakers, of which only 50 are of any real size, and the majority of online bookies certainly do not want arbers as customers.
Arbitrage is a balancing act of pursuing a perfectly legal occupation but to be permanently treated as an ‘unwanted’ customer. Moreover, the potential income is perhaps limited to a maximum of 50,000-70,000 € per annum due to bookmaker stake limits, own capacity, betting bank size, time constrictions, etc.
Before you decide to give arbitrage a go please consider carefully whether it is in fact a good use of your time to learn and master. There are other things you can do to learn a new trade and make money in a profitable, but more socially acceptable way.
If you are still curious about arbitrage then it may be worthwhile checking out the experiences of a professional trader: Alan Seymour’s Sports Arbitrage Review. Alan has been arbing since 2002 and his blog describes his experiences both honestly and openly. Really great advice on his site!
Here is a recommended automatic Arbitrage Tools which display potential arbs for you, sometimes providing a wide range of cross-market opportunities (the type of arbs with a longer relative lifespan):