We recently spoke about some myths in regards with some myths related to the common practice of arbitrage betting. The key to success for a PPH company is to be relevant for it’s partners, in this case bookies, here we go deeper into the subject in an effort to provide you with more effective tools.
A common misconception associated with having an easily arbitraged book is that it will be easy to profit from this type of player since they are going to be betting far more often to get a “riskless” profit on their end. This couldn’t be further from the truth, but it represents a slightly more nuanced type of player than a traditional bettor.
While this type of bettor is one that will make more consistent bets they will also have a higher risk of going “bust” in a single weekend, given that they are going to be betting large amounts consistently with a couple of bookies. If something goes wrong, or a bookie fails to pay, then you run into major issues very quickly, particularly if your bankroll isn’t high enough or that client represents a large part of your book.
That being said, for many bookies the prospect of a regular arbitrage bettor will be a nice addition because they do represent regular profit week in and week out as they bet so much, but you will want to be especially careful to keep a higher reserve in cash to remove any risk of your business being hurt if they blow themselves up.
While most of the arbitrage betting discussion comes from the perspective of a bettor, you can also take advantage of arbitrage betting in a variety of ways as well.
As a bookie, one of the key fundamentals of a safe book is one that doesn’t take any net action, meaning that there are just as many bets on one side as there are on the other. If this isn’t the case, then one way that you can amend this is to take small bets on one side of the book or another to even out this risk. While this isn’t something that you want to do all the time, if your focus is more on managing risk than on making the optimal (albeit most volatile) profit, but it can help to manage cashflow and risk to your business.
Similarly, if you notice that your book is overwhelmingly weighted one way or another, you can put off parts of that action onto other bookies by taking advantage of arbitrage with other bookies as well. For example, if you notice that you have an overwhelming number of your bettors taking the money line for the Panthers in the Super Bowl, then you can offset some of that action by either shifting your odds further than other books, inviting arbitrage opportunities to your book or by betting the opposite side to clear up some of the risk in your book as well.
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