Arbitrage Betting Australia

Arbitrage betting, or arbing, is a strategy used by savvy punters that ensure you are guaranteed to turn a profit regardless of the result. This tactic works best in matches or games where there are two players or teams and there are head-to-head markets. 

It would work for sports like NRL or AFL, for example, where you bet on both teams in the head-to-head market, using different bookies. The varying odds offered by different betting sites on the same event means, on occasion, you can exploit the odds difference to ensure a profit, no matter which team wins.

While the profits you receive are usually quite small, there is the benefit of being guaranteed a win. So, if you have enough time and know-how to go through all the different odds offered by various bookies, you could benefit from this tactic.

There are a few options available for you to go about finding arbitrage bets in Australia. These options are available for any racing code or sport you wish to bet on, so even if you are looking for NBA arbitrage betting, you can use one of the three options listed below!

 Option 1 - Manually 

This may not be as popular as the other options because it is more time-consuming, but it still is possible to find ideal arbitrage bets using this method. Your profits will likely be lower, but it is recommended to try this method before purchasing software, so you can wrap your head around how it all works.

It can be a fairly tedious process, but once you’ve done it a couple of times, you’ll likely get the hang of it and manage to spit out good arbing bets regularly. If you work using this process for a while, you’ll benefit from getting a good feel of the odds you need to see for an arb betting opportunity and which are the best betting apps to look into.

Option 2 - Free Software

If you think you’ve nailed down the manual option pretty well, then it’s time for option 2! Try your hand at using some free software tools. Using software will help you because it automatically detects and alerts you if there are any new opportunities for arbitrage betting.

There are a few free tools available, so try them out to get a feel of how they work before you put any of your hard-earned money down. The tool allows you to compare the odds for a range of events across several bookmakers, even small betting sites as well as betting exchanges.

It’s important to remember that due to the fact you aren’t using paid software, not all arbs are going to be displayed. There will be enough to give you an idea of how everything works. The amount of opportunities that will be displayed differs depending on the provider.

Option 3 - Paid Software

Once you’ve successfully made your way through options 1 and 2, it’s time to splurge on a paid software provider. Paid tools work in the same way as free tools, but this time you get all the bells and whistles. For example, there are no longer time restrictions, so you can see the opportunities before the event begins.

You will receive all the relevant opportunities in real time, so you have enough time to see if it’s a bet you wish to place. On top of this, some paid software providers have extra features, like email alerts or arbitrage betting calculators. It all depends on how much you are willing to pay for this tool.

As with anything in betting, there are risks involved. You must understand the risks of arbitrage betting in Australia so you can determine if this is a strategy you want to use. Also, understanding the risks will help you avoid them and therefore become more successful when arbing.

Human Error

Humans make mistakes. It doesn’t matter how careful we are, sometimes mistakes happen and this is a possibility when it comes to placing arbitrage bets. Common mistakes like mixing up the event, placing the wrong stake amount or choosing the wrong odds all can occur. 

Rapidly Changing Odds

You’re probably already aware of how quickly odds can change at each bookie. So, if you’ve placed your first bet with a certain bookie and now you’re going to the second bookie, but the odds have already changed, this could make the arb unprofitable. Betting sites, like PlayUp for example, change their odds all the time. If you’re interested in learning more about this bookie, visit our PlayUp review.

Limited Stakes

Smaller bets result in smaller returns, so when it comes to arbitrage betting in Australia, many try to stake larger amounts. If a bookie suspects you of using this strategy, they will likely reduce your maximum bet amount. The bookie doesn’t want to lose money, obviously, so they are effectively cutting you off at the knees.

Bet Cancellations

Bet cancellations happen if the odds provided by the bookie were a clear mistake. Just like humans, bookies make mistakes and clever punters can take advantage of this. You can’t control this risk, but if you see crazy good odds being offered, which isn’t one of their betting sites bonuses, then it is probably too good to be true.

Timing and Opportunity Cost

In the end, the profit that you make from this strategy is fairly low. So, you need to factor in the time it takes you to bet and the profits you’ll likely make. Is it worth it? That’s up to you to decide. You can make things easier on yourself by using a paid software tool, but that’s more expense that you need to take into consideration.

Many people are questioning if sport betting arbitrage is legal in Australia. The good news is that it is legal, but most of the bookies (understandably) don’t like arbers, so they do everything in their power to stop them. The best arbers can clean bookies out, therefore at the first sign of this strategy being used, restrictions are likely to be placed on your account.

Some bookies may welcome arbers because they trust their traders, but it is not very common at all. Bookies may close your account, place limits on your account or even give you a lifetime ban. They aren’t allowed to keep your winnings as they must allow any existing bets to stand, but you might not have any future with them.

It is still possible to fly under the radar, especially if you keep your stake low, use a large range of bookies (we have a list of all betting sites for you to look into) or even bet on less popular sports. So, at the end of the day, sport betting arbitrage is legal, but there are some very real risks, like a lifetime ban with the bookie, that you need to consider. 

If you’re reading this guide to arbing, the likelihood is that you are a newcomer and haven’t tried this betting strategy before! While arbitrage betting in Australia is certainly legal, most bookies don’t like it, so they will be looking to shut punters down who use this tactic.

Below are some tips for newbies to ensure you can be successful when placing arbitrage bets:

• One of the biggest tell-tale signs that a punter is trying this strategy is the amount of your bet. So, it is a good idea to avoid placing large amounts as this could result in some suspicion from the bookie.
• Avoid betting on unpopular sports or outcomes because these are usually more easily recognised as there aren’t a lot of bets on the event.
• Only place your bet once, multiple requests, no matter, if the bet is accepted or rejected, can result in exposing yourself.
• The most profitable sports attract the most arbers, but remember the more bets on the same arb, the increased likelihood the bookie will check it. Finding unique opportunities will help you remain undetected.
• Try to avoid multiple withdrawal requests and this could trigger the bookmaker to look into your account and potentially reject the withdrawal for even the smallest of violations.

Arbing is all about finding discrepancies in the odds with different bookies. There are many reasons there could be a discrepancy in the odds, for example:

• A bookie could be offering above-average odds to attract new customers 
• A bookie might be slower in reacting to changes in the market
• A trader working for a bookie has made a mistake

We’ve put together an example that can help explain arbitrage bets in a way that is easier to understand:

1. We are looking to bet on an NRL match. There are plenty of NRL betting sites out there, so lots of options to choose from.
2. The game we are betting on is Melbourne Storm versus South Sydney Rabbitohs. 
3. Bookmarker A is paying $1.49 for the Melbourne Storm to win and $2.85 for the South Sydney Rabbitohs to win.
4. Bookmarker B is paying $1.35 for the Melbourne Storm to win and $3.75 for the South Sydney Rabbitohs to win.
5. We have $200 to bet on this game, so we bet $55 on the South Sydney Rabbitohs at $3.75 and $145 on the Melbourne Storm at $1.49.
6. If the South Sydney Rabbitohs win, your total return will be $206.25 and if the Melbourne Storm win, your total return will be $216.05.
7. Both outcomes are greater than our original stake of $200.

So far, in this guide, we have mainly spoken about how betting arbitrage in Australia works in terms of sports betting. But arbitrage betting in horse racing is also an option and is quite popular! It is popular because there are heaps more arbing opportunities and the payouts are much faster.

The tactic used for horse racing is a little bit different to what you would use in sport betting as it is pretty much impossible to back each runner in a horse race using the traditional method. So, we recommend using a betting exchange, which is where punters can place bets on a horse to win as well as lose.

The betting exchange company earns their money by charging a commission on punters' winnings. The commission is only small, which means it is still very possible to earn money as a punter by arbing on horse racing.

The two main terms you need to know when getting involved in a betting exchange:

So, you can use a typical bookmaker to back a certain horse and a betting exchange to lay the same horse. Then, the process becomes similar to what you would do if you were arb betting on sports. If the horse wins, you’ll get winnings from the typical bookmaker, if it loses, you’ll get your winnings from the betting exchange. 

As is the case with sport betting arbitrage, you need to look out for opportunities where the bookie and betting exchange have got it wrong in terms of the odds on offer. Uncovering and utilising any discrepancies in the odds is where you can make some profit from arb betting.

If you’ve gone through this guide on arbitrage betting in Australia and still have some last-minute questions, this is the section for you! We’ve gone through and answered some of the most common questions people have about sports arbitrage betting below: