This article covers three different ways of making money from Sports Betting strategies (Matched Betting, Arbitrage Betting and Value Betting) and they are all based on sound statistical principles that work in both theory and practice.
Bettor’s who follow any of these will eventually find that bookmakers will limit them, however, before this happens, you can extract some good profits from them.
Some of these prinicples are tougher for the bookmakers to spot than others and this article explains some of the pros and cons for using the different Sports Betting strategies.
1) MATCHED BETTING
There are numerous website and bloggers offering matched betting strategies. The logic behind it is to place bets using bonuses and promotions from one bookmaker and creating an arbitrage bet with another.
Whilst the least risky, matched betting offers the least reward.
MATCHED BETTING PROS
- Just like arbitrage betting, it is risk-free in theory.
- A large bankroll is not needed to get started.
MATCHED BETTING CONS
- With time, the amount of promotions decreases, effectively limiting how much you can make from matched betting.
- Personally, we wouldn’t recommend wasting ‘good’ accounts on doing it because it is easy for bookmakers to spot these type of bets, meaning you will quickly get limited.
If you are starting out with a very small bankroll, it can be a good way to win money on sports betting. You can use signup bonuses to build your bankroll.
If you are serious about making larger sums of money, it is better to save up a bit of cash and turn to value betting.
2) ARBITRAGE BETTING
With arbitrage betting, you are using hard cash only rather than promotions. To complete the arbitrage bet, a bet is placed with bookmakers on one side and the exchanges/bookmaker’s on the other.
The potential Return on Investment per arbitrage bet is usually around 1%.
ARBITRAGE BETTING PROS
- In theory, the main advantage of arbitrage betting is that it is risk-free.
Although arbitrage bets appear risk-free, in real life it is not that easy. The reasons are covered in the cons below.
ARBITRAGE BETTING CONS
- One possible risk of arbitrage betting is that the odds move after one has placed one side of the bet
- Due to unforeseen events (e.g. bad weather) or palpable errors, bookmakers mispricing their odds massively, any of these elements would all leave you exposed on one side of the arbitrage.
- Another potential downside is that it is easier for the bookies to identify arbitrage bettors, thus putting a cap on the potential lifetime earnings.
- To take advantage of the ‘Surebet’ opportunities, you will tie up you’re a large chunk of your betting capital across a very wide range of bookmakers.
- Arbitrage bets do not occur as frequently as value bets thus limiting your potential income.
3) VALUE BETTING
To explain it simply, instead of betting on all outcomes, Value Betting only places a bet on one market e.g. the away team to win.
In a broader sense, a value bet can be described as placing a bet at higher odds than its underlying probability.
VALUE BETTING PROS:
- They present themselves more frequently than arbitrage bets, which means you can get in a much larger number of bets and increase turnover.
- They are more difficult for the bookmakers to spot than arbitrage and the ROI percentage per bet is higher for value bets than arbitrage bets.
THE MAJOR CONS OF VALUE BETTING
Value Betting presents higher risks because your only betting on one side of the game, thus increasing the variance. For example: If you place one bet with odds of 2.0, you can only expect to win 50% of the time.
From 10 coin tosses, anything can happen, like 10 losing straight bets, however, over 20,000 tosses, the number of heads and tails should be 50/50.
To put it simply, with short runs, variance and swings will have a large impact on your results.
MANAGING THE RISKS OF VALUE BETTING
The great thing is that some of the risk can be managed by:
- You can reduce your risk by testing your strategy over a large sample size of bets.
- The most important way to reduce your variance is to take lower odds, which presents a higher probability of winning.
Which Sports Betting strategies to choose?
The strategy you decide to choose will depend on your risk and reward appetite.
Over at Trademate Sports, out of the 3 Sports Betting strategies, they are all about value betting. Why? because Value Betting provides the highest return potential and it is the reason why Trademate made the ultimate tool to help people identify value bets.