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Matched betting and arbitrage betting are two terms that are so similar that it’s easy to mistake them for being synonymous.
Let’s clear out the confusion and explain exactly what each of them stands for.
Matched Betting
First off, what is matched betting?
Let’s take an example. You sign up with a sportsbook and receive a free bet promotion. You then place that bet and simultaneously place the opposite bet with another bookie.
So, for example, let’s say you use your free bet of $25 to bet on Manchester United to beat West Ham (draw no bet).
Then, with another bookie, you place West Ham to beat Manchester United (draw no bet).
So unless the game is a draw, you will win that $25.
In short, you don’t have to risk your own money, but the drawback is that you have to sign up with dozens of sportsbooks, and usually, each of them only offers one such promotion per player.
Arbitrage Betting
Now, you don’t rely on promotions when it comes to arbitrage betting or arbing.
Instead, you use tools like OddsJam to detect arbitrage opportunities and make consistent amounts over a more extended period unless you get restricted.
Yes, Bookies will likely restrict you from arbitrage betting because it’s losing them money.
But until they do that, you’re free to make the most of it.
So, how does arbitrage betting work? Here, we bet on all game outcomes to guarantee a profit. But, we use different sportsbooks to find the best odds for each outcome.
With most games, you won’t be profitable doing this. But sometimes, there will be opportunities in the market where some bookies place the odds higher than others, giving you an arbitrage opportunity.
Let’s take the example of Manchester United vs. West Ham again.
Man U to win gives you 4.50 odds.
Draw gives you 2.00 odds
West Ham gives you 4.00 odds.
And let’s say we bet $195.
$45 on Man U
$50 on West Ham
$100 on draw.
Profit if Man U wins: $4.5 x $45 – $195 = $7.5
Profit if West Ham wins: $4 x $50 – $195 = $5
Profit if draw: $2 x $100 – $195 = $5
It’s not often odds are this inconsistent, but sometimes, over multiple sportsbooks, they can be. And keeping track of this manually is a pain; that’s where tools like OddsJam and OddsMonkey come in and help us.
Conclusion
Both matched betting and arbitrage betting lets you bet without risking your money.
Matched betting utilizes promotions while you have to use your money with arbitrage betting, but there is no risk involved.
Which method is best for you? It depends. Arbitrage betting is more time-consuming, but it’s more consistent, letting you win more over a period of time. In contrast, matched betting can give you a quick and easy bankroll boost.
