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This minicourse has been written to provide you with an introduction to the principles involved in sports arbitrage. Log into the TraderZone to purchase your Trader Pack which includes the Hardback Version of Sports Arbitrage - How To Place Riskless Bets and Create Tax-Free Investments by Rajeev Shah

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HOW DO I LOCATE ARBS TO TRADE?

There are 2 factors which identify an arbitrage trading opportunity

1. The event must have a limited number of possible outcomes

The event that you are betting on should ideally have either 2 or 3 possible outcomes.

For example, the event may be a head-to-head contest, such as a tennis or snooker match, where only one of the players can win. Or you may consider a cricket or football match, where there are three possible results including a tie/draw.

There are exceptions, where arbs become available in events with more than three outcomes, and they can prove to be very lucrative, but you will find your most regular arbs in events as described above.

2. There should be an adequate percentage margin in your favour

When you are beginning, it will probably be better to restrict your betting to opportunities that yield 2.0% or more. This will allow you a margin for error as you are learning, and any mistakes will probably just result in a break-even situation where you may just have to sacrifice your profit.

However, as you grow in experience, you will be able to consider ALL situations, including the many THOUSANDS of 1%-2% opportunities that occur every month. While juicier 8%-15% arbs, which pop up a few times a week, will provide you with wonderful bonuses, the smaller, far more frequent ones will consistently add to your bottom-line.

So - that's it. You find the event, do the maths, place the bets, and earn a guaranteed profit regardless of the outcome. Once you have streamlined your processes, it couldn't be much simpler.

The skill is in finding suitable events to bet on. You'll be able to learn more in detail about this below.

There are many arbitrage-producing events available, but here is a short list those which you are highly recommended to check.

Tennis

With only two possible outcomes, this is the ideal event. The more obscure the tournament, the better your chances of finding profitable differences of opinion between sportsbooks. A large proportion of the bookmakers listed regularly offer prices on all tennis matches

You are likely to find a significant number of arbs in tennis.

Snooker

Once again, with only two possible outcomes, snooker is an ideal event in which to seek arbitrage opportunities, although stakes can sometimes be limited by bookmakers to just a few hundred pounds.

Cricket

The one-day matches allow for only two outcomes while the winter tour also allows for a draw. Cricket seems so be something of a weak-spot for many bookmakers; a fact which often gives rise to some large percentage arbs.

US Football

The divisional championships can produce some lucrative arbs. Once a few games have been played, very large discrepancies between sportsbooks can arise. It is also often the case that North American odds-compilers take a completely different view to their European counterparts-which creates more arbitrage opportunities.

Golf

Golf produces an abundance of arbs each week in 2-ball and 3-ball 18-hole matchups as well as the 72-hole matchups. Further,in the match-play events such as the Dunhill Cup and World Matchplay Championship, the contestants are paired up and can only either win or lose. The markets in these events can be quite volatile and produce many arbs.

Soccer

It is worth keeping an eye on the European matches every week during the soccer season since they can produce some lucrative opportunities. One of the benefits of soccer betting compared to many other sports is the very large stakes size that bookmakers will accept. look out for arbs not only in regular Home, Away, Draw markets but also Asian Handicaps & Total Goals markets.

Politics & Entertainment

Whether it is the next US President, or the next person to leave Big Brother, if there is room for disagreement between odds-compilers, there is potential for arbitrage. Some very large margins can be earned in these non-sporting events because the bookmakers have to guess much more than in sports.

Other Sports

When on the prowl for risk-free profits, you should also consider

boxing
basketball
baseball
hockey
ice hockey

If you are going to look for arbs manually, then you have to be prepared to spend a lot of time and effort scouring individual bookmaker sites & odds-comparison sites for prices. This can be rewarding in some cases but it makes far more sense to use software to perform this task as it is much faster and will free you to do other things.

So, now you know what to look for, let's take a look at how the TraderZone will assist you...

Go to Part 05

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