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To learn arbitrage betting and how to calculate your profits from arbitrage betting on sports markets is really easy, thanks to the free arbitrage betting calculator provided by ArbShooters.com

Click here to use the free arbitrage betting calculator.

Let’s do an example together. We just received an arbitrage betting signal with the following information:

Bookmaker: Paddy Power
Race Track: 21:11 Lone Star Park
Horse name: Imperial Ivor
Bookmaker price: 8.50
Going down to: 6.50

How to understand Arbitrage betting alerts

To summarise the alert and how we profit, we’re going to follow these steps:

  1. First, place a bet on Paddy Power for the horse TO win. The bet amount is up to you, we recommend starting with small stakes (£5/10). For this example, we’ll use a £30 stake.
  2. The horse we’re going to bet £30 to win is called Imperial Ivor.
  3. We only place the bet with the bookmaker if you see the same price before it drops i.e. 8.50
  4. The Arb Shooters signal alert service informs you that this horse’s price is going to fall down from 8.50 to 6.50 – which is a 30% drop.
  5. Finally, we want to take advantage by also placing another bet in Betfair’s betting exchange for the horse NOT win. As a result, we have completely covered our risk and the profit will come from the difference between the back odds vs lay odds.

Remember, the golden rule for profiting with Arbitrage betting: Every time we place bets where the bookmaker (back) odds are greater than the lay odds, we lock in a profit!

Now, the next step. How to use the free arbitrage betting calculator to understand how much profit you’ll make, with Arbitrage betting?

Go ahead and open the free arbitrage betting calculator

1) The bookmaker bet amount: £30
2) The bookmaker odds: 8.50
3) The current Betfair exchange lay odds*: 6.50
4) The Betfair exchange commission: 5%**

*The alert tells us the price it’s going down to (6.50). This does not mean we wait for the lay odds to drop right down to 6.50. So long as the lay odds are lower than the bookmaker odds (8.50) you’re fine to calculate your arbitrage bets and unlock profits.

**Betfair’s exchange commission is 5% by default. You can request this to drop down to 2% by directly requesting it from Betfair’s customer support. Did you know, other exchanges such as Smarkets and Betdaq can also be used for laying off your arbitrage bets?

Sign up to Smarkets exchange and receive £10 risk-free bet

How much profit will you make with this arbitrage signal using the arbitrage calculator? See below!

Guaranteed profit: £7.55

A nice return on this arbitrage. This is just one arbitrage signal provided, you can expect to receive multiple arbs every single day – for free!

There can only be two outcomes from the event
Outcome 1 – The Horse Wins the race

If the horse wins, our bookmaker bet wins and our lay bet loses. If our lay bet loses, then we only lose the liability amount calculated by the arbitrage betting calculator. You won’t lose the lay stake amount, as that is what we’re aiming to take from the exchange market.

Don’t worry about losing the liability amount in your exchange, as the return gained from the horse winning in your bookmaker account will cancel out the liability loss, don’t worry!

Outcome 2 – The horse does not win the race.

In this case, you lose the bookmaker stake, but win the lay stake amount in the betting exchange. Remember, we need to minus the lay bet commission from the lay stake which leaves us with our net earnings from the lay bet winning.

Understand how arbitrage betting works – The Maths!

Outcome 1 – The Horse Wins the race
If bookmaker bet wins and lay bet loses:

Bookmaker return = Stake X Odds (in decimals)
Example: £30 X 8.5 = £255
The £30 was already yours, so you’re actually up £225 in the bookmaker account.

As your bookmaker bet won, your lay bet lost; which means you lose the liability amount calculated in the arbitrage calculator (£217.42).

£225 – £217.42 = £7.58 arbitrage profit!

Outcome 2 – The Horse loses the race

Your lay bet wins so you gain the lay stake £39.53. Minus the lay commission (5%) leaves you with £37.55.

You lost £30 with the bookmaker. Therefore £37.55 – £30 = £7.55 arbitrage profit!

That’s it! You now understand how to profit with arbitrage betting using the arbitrage calculator.

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