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In this tutorial video, Alex M (bio below) discusses arbitrage betting, as well as the pros and cons of arbitrage betting. Yes, it’s possible to make risk-free money with sports betting arbitrage, but that doesn’t mean it’s easy or right for you.
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Alex graduated from Stanford in cs/math before working as a quant trader on Wall Street. He’s currently the youngest member of the OddsJam team, and also a cofounder.
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Video description:
In this video, Alex discusses sports arbitrage, why it’s possible, and the pros and cons of arbitrage betting. Bookmakers set different lines because they want to be unique. Arbitrage betting allows you to earn a risk-free return on capital on a daily basis. Most arbitrage bettors aim for make 1.5% to 3.5% per day with this strategy, and then watch those returns compound & compound. Arbitrage, or arbing, is a great strategy for sports bettors just starting out betting on US sportsbooks.
However, arbitrage has its flaws. Odds can move quickly on the best arbs, so you need to move quickly. This is not passive income by any means. You also may face eventual limits from a high percentage of bookmakers in the long run. No sportsbook will let you go up $250,000 on them; you’ll be limited well before then, which means your bet size will be reduced. Additionally, arbitrage is not nearly as profitable in the long run compared to positive expected value (+EV) betting.
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