Arbing or arbitrage as it is known in its longer form, has played a key role over the years within the betting industry. Arbitrage is simply backing different outcomes, guaranteeing yourself a profit, regardless of the outcome of the event. This is not trading. The bets placed when arbing have to be placed as concurrently as possible. Any delay in the placing of the bets gives greater opportunity for the prices to change and the arb to disappear. It started as bets placed with two different bookmakers.
I had no idea what arbing was until a friend explained it to me when at university in about 1999. Back in those days you could literally arb using price comparison matrices that were in the Racing Post. They even told you the over round on the market. Under 100% and an arb was potentially available. It was a race to find the earliest edition of the Racing Post. It was a practice that was very much suited to a two runner event like Tennis. It was always tough to know though if you would be able to get all the required bets on. These were the days before Oddschecker and even Betfair. It wasn’t something I did much of as even then I realised it was a quick way to get accounts restricted. I knew some who did pretty well out of it though.
Where it is fascinating was the vitriol that was directed at arbers in general. Not very complimentary. It’s fascinating when you think about it. They are ultimately just taking incorrect prices offered by bookmakers. Imagine that. They are just taking inefficiencies in the market. As the internet and online bookmaking advanced you ended up with arbing becoming a much more automated process. It almost became a mini industry in its own right. There is lots of arbing software out there.
One thing about arbing was that it gave the bookmakers a great excuse to restrict/limit accounts. We are banning you because you are an arber. The reality is the bookmaker doesn’t know 100% if you are an arber. They simply know you are taking the best prices offered in the market. One of the biggest tell tale signs of an arber is betting in very strange amounts. Ironically, this could also be a staking plan like Kelly’s Criterion. However, the bookmakers had what they believed to be just cause for restrictions and boy have they run with it since.
One area you used to find plenty of arbs was with football coupons in shops. The coupons were pre printed with prices and they were very slow to update them. You will find it with things like price boosts these days. I don’t know how much of an industry is left in terms of arbing. The bookies are much more aware of their pricing (Oddschecker, Betfair etc). Also the prices are often sourced from similar providers rather than derived by each individual bookmaker.
One thing you do have these days are slightly more complex arbs. I would describe them as synthetic arbs. So it might be a To Qualify market and an Outright market rather than just backing outcomes in the same market. When Betfair is involved things get so much more complicated as you have to factor in not just commission rates but potential Premium Charges and PC allowances. It really depends on the individual situation with your account.
All said and done it is something to be aware of but unlikely to reap huge benefits these days. Some will still make it pay obviously. I think it is important as much as anything to understand the role arbing played in the restriction of bookmaker accounts.
ProPunting 