"Special" Bets

Small investors who are prepared to take a gamble could do worse than to keep an eye on some of the larger sportsbooks such as Bet365, Unibet and Paddy Power for what are usually simplistically termed “Special Bets”.

These are usually bets on non-sporting events such as elections, TV reality shows and film awards.

Because the sportsbooks by definition specialise in sport, these bets so often fall outside of their areas of expertise and can often therefore lack the shrewd insight which usually gives the bookies their built-in “house edge”.

Major betting exchanges such as Betfair, being customer-driven, will usually operate a book which reflects the odds on these events much more accurately, and often an opportunity will be created to lay off or “arb” an over-generous price offered by one of the conventional books, creating an opportunity for an immediate profit.

It is worth remembering that even multi-million betting operations with inside information and intelligence on horse racing and the world of football will often have less insight into the politics of your local electoral constituency, for example than you have.

Don’t always assume that the bookie knows best. Shop around, and take advantage.

Sports Betting Arbitrage

"Betting is a mug's game," or so they say.

You'll never meet a poor bookie".

Clichés as they are they do have a certain truth. Bookmaking is all about the "house edge". What this means is that the price offered to the punter by the bookmaker is less generous than the "real" price should be. In other words, if a bookie was offering you odds on the flip of a coin coming up heads he would probably be setting a price in the region of 10/11 or 5/6, when the true odds would of course be Evens.

Certainly you still have a 50/50 chance of winning the bet. But if you win the bet at 10/11 your £11 stake will win you £10. If you lose, your loss is £11. So although your chances of winning a single bet are 50%, place the same bet 100 times and it is virtually certain that you'll be out of pocket. Hence "the house edge".

Sports betting arbitrage reverses that verdict. By using different odds at different bookmakers you turn the prices to your advantage. For instance, if Bet365 is offering 6/5 on Bloggs to beat Brown in a snooker fixture and Evens is available at Betfair on Brown to beat Bloggs in the same match you can, by carefully setting your stakes accordingly, lock in a guaranteed profit whatever the outcome.

There are pitfalls - human error, last-minute price changes, cancelled bets, maximum permitted stakes being altered without notice - but the skilled arbitrageur will overcome these on balance. Of course the return each time is relatively low - any "arb" over 2% is considered a good one, so an investment of £1000 would be needed just to make £20 in profit. In other words to benefit from sports arbitrage one needs some serious starting capital.

But it does work, and many people make a living from it.

High Rolling in Online Sports Betting

The term "high roller" in sports betting refers simply to the placing of large stakes. What one person might consider high, of course, might differ substantially from another's understanding of the term. For the purposes of this article let us consider those punters who are frequently prepared to wager into four figures and beyond.

Very few bettors place four-figure or five-figure bets every time. Ordinarily they will assess the likelihood of a wager being successful and stake accordingly. How generous a price on a particular market happens to be would often be a consideration too. However a person who places high stakes with some degree of frequency might reasonably be considered a high roller.

Perhaps unsurprisingly different bookmakers (sometimes called sportsbooks) will take different views on the desirability or otherwise of high roller custom. A very large wager on a line which carries a big price exposes the book to the prospect of hefty losses should the bet be successful. A good book such as Pinnacle (now sadly no longer accepting business from UK customers) will welcome the bet every time due to its skill in balancing its prices out. Others though will run shy, and seem to prefer the custom of the pound-a-bet hobbyists and occasional dabblers.

FA CUP FINAL

Most sportsbooks will operate different limits for different markets. A punt of several thousands on the likely winner of the next X-Factor competition is unlikely to be accepted as this tends not to be a high roller market, and it would be difficult for the bookmaker to offset the bet. The same sportsbook is likely to offer a far more generous limit on the outcome of the FA Cup Final or the winner at Wimbledon because there will be wagers aplenty on the opposite side of the line creating some sort of equilibrium. Indeed your five-figure punt may have the effect of pushing down the price on that market, thereby increasing the price on the opposite line{s) which is thereby itself made a more attractive proposition for potential customers.

It is an unfortunate but unavoidable truth that some online bookies are known to slash the maximum stakes offered to certain customers once a few large wagers have proved successful. Indeed it is not unknown for punters to access their accounts and attempt to place their bets only to find that their previous £1000 limit has been reduced to £1.

Paradoxically the best sportsbook for high rolling customers is probably one which doesn't operate a limit at all on its stakes - Betfair. Because Betfair is a betting exchange which makes its money solely from the commission it deducts from winning bets it has no interest in restricting customer action, indeed quite the opposite.

High rolling is not a discipline for everyone. To even attempt it one must have the money to stake in the first place (and be prepared to lose it), and then some considerable knowledge of the market in order to ensure at the very least that losses are kept to a minimum, and ideally that a profit is made.

Reproduced with acknowledgements to Sports Review.