To most people, the words ‘guaranteed money’ and ‘betting’ do not belong in the same sentence.
However, if you’re already proficient in the science of matched betting – you’ll know that this is absolutely possible.
Because you’ve already been using the Betfair Exchange to cover all possible outcomes – removing the risk and locking in a profit from the bookmakers’ free bets.
And now, I’m going to show you how to use the Betfair Exchange to exploit the bookmakers’ pricing mistakes in the UK horse racing markets to secure guaranteed returns.
It’s called ‘place-market arbitrage’ betting.
And it’s basically like doing matched betting – but without relying on the free bets to make a profit.
Allow me to explain.
How Does the Place-Market Arbitrage Strategy Work?
An ‘each-way’ horse racing bet is two bets rolled into one.
You’re betting on the horse to ‘win’ and on the horse to ‘place’.
If the horse wins the race – you’ll be paid out for both the win-part of the bet and the place-part.
And if the horse finishes in one of the predetermined places – you’ll be paid out at a fraction of the win odds.
The bookmakers calculate the odds for the place-part of the bet as a fixed fraction of the win odds – usually 1/5 or 1/4.
(Example: Bet365 will pay you at 1/5 of the win odds if your horse finishes 1st, 2nd, or 3rd in the 14:00 at Hexham).
Quite often, this leads to favourable pricing inequalities between the bookmaker’s place back odds and the corresponding place lay odds on the Betfair Exchange.
That is, if the effective place back odds are significantly greater than the place lay odds – you can back and lay to lock in a profit using the betting exchange.
This is the essence of what’s called ‘bookmaker-exchange’ place-market arbitrage betting.
Who Should Use this Strategy?
Place market arbitrage betting is ideally suited to advanced matched bettors who’ve had their bonus privileges revoked (‘gubbed’) on their bookmaker accounts.
This allows you to extract more money from an otherwise worthless bookmaker account.
Who Should NOT Use Place Market Arbitrage Betting?
This is not a strategy for beginners.
Due to the rapid odds fluctuations, you’ll need to be confident in your ability to place back and lay bets quickly – without making any mistakes.
Also, whilst place-market arbitrage betting is not as blatant as ‘win-market’ arbitrage betting – the bookmakers will still limit your stake sizes eventually.
And when that happens – that really is the end of your account.
So, I strongly advise that you do NOT use this strategy on your bookmaker accounts that are still eligible for high-value free bets.
For example – Bet365, Ladbrokes, Coral, and William Hill.
How Much Money Can Be Made?
£1 – £10 per every £100 staked (£50 each-way) is the average.
This equates to a 1 – 10% ROI (return on investment).
Which means that the more you bet – the more money you’ll make.
However, in my experience, bets above £20 – £25 each-way tend to get your accounts banned faster.
So, it’s better to place smaller bets across a range of bookmakers to distribute the effective ROI in a less obvious manner.
Are Profits Really Guaranteed?
On paper – yes.
However, in reality, if the lay odds drift out after you’ve placed the back bet – you’ll make less money.
And in some cases, you may have to lock in a loss if there’s a rapid drift.
There are also a few more potential banana skins that you need to be aware of – as listed below.
What are the Risks?
I’ve used the term ‘guaranteed profit’ under the assumption that no mistakes are made during the bet placement process.
However, if you place the wrong combination of back and lay bets – the outcome could be very costly indeed.
Also, if enough horses withdraw from the race – the bookmakers will reduce the number of places to be paid.
The betting exchange, however, will not make this adjustment in the place lay market.
This could cost you money if the horse finishes in the place that’s not covered by either bet.
Thankfully, this ‘non-runner’ issue is both fixable and mostly preventable.
Place-Market Arbitrage Betting – How to Lock in a Profit in 7 Steps
Here’s the exact seven-step protocol that I use to make money from UK-based, horse racing place-market arbitrage bets.
I’ve included some tips that I’ve picked up along the way at too.
And I’ve also thrown in 3 bonus strategies (totally optional) that’ll help you boost your long-term profits even more.
Step 1: Build Yourself a Bankroll of at Least £500 – £1,000
You shouldn’t attempt place-market arbitrage betting if your available bankroll is smaller than £500.
This is due to the high associated liabilities in Betfair.
Step 2: Get the Each Way Sniper Software
Place-market arbitrage betting opportunities come and go quickly.
Which means that trying to find them before they disappear is far too difficult to do with the naked eye.
If you want to make money from place-market arbitrage betting – you’ll need special software.
Personally, I use Each Way Sniper by Mike Cruickshank.
Because the odds-matching software refreshes every 30 seconds – allowing me to exploit more bets:
And the lay calculator is easy to use – crucial for calculating my lay bets quickly so that I can lock in a profit:
Step 3: Watch ALL of the Each Way Sniper Training Videos
Each Way Sniper comes with its own video training.
You should watch all of the videos before placing any bets, in particular:
- ‘What is an Each Way Bet?’
- ‘How the System Works’
- ‘Calculator Explained’
You should also watch all of the worked examples.
(Go to ‘Each Way Sniper’ > ‘Software Training’ to watch all of the training videos).
Step 4: Understand How to Fix the Non-Runner Issue
Make sure that you have watched the ‘Non-Runners’ video.
Mike specifically explains how to fix – and mostly avoid – the non-runners issue.
Do NOT place any bets until you fully understand this process.
Step 5: Find a Profitable Selection
Now it’s time to make some money.
Pull up the odds-feed and find a high-value selection.
I look for horses that have a rating of 105% or higher – this gives me a bit of a buffer in case the odds move unfavourably.
You can adjust the filters to only display selections that meet your preferred criteria.
You may also wish to reduce the maximum odds to keep your Betfair liabilities down.
(The horse ‘Indian Music’ is offering £7.52 in guaranteed profit for every £100 placed in back bets (£50 each way) – as indicated by the 107.52 rating).
Step 6: Check the Liability
Once you’ve found a profitable selection – click the blue ‘calculator’ icon.
Most of the information for the selection is prepopulated.
But remember to input your chosen total bookmaker stake in the first cell.
The next step is to make sure that you have enough money in your Betfair Exchange account to cover the total liability by looking at ‘Total Staked’ > ‘Betfair’:
(Backing the chosen selection for £50 each-way requires £100 to be placed with the bookmaker and £294.05 in your Betfair Exchange account – to lock in a profit of £5.95).
Step 7: Place Your Bets to Lock in a Profit
Are you happy with the liability and the profit that you’re going to make?
Then go ahead and place your each-way back bet with the bookmaker and the win/place lay bets with Betfair.
Just as Mike showed you in the training videos.
Then all that’s left to do is monitor for non-runners and collect your profit once the race has finished.
Simply rinse and repeat to make more money.
Each Way Sniper is a great tool for making money without having to rely on the bookmakers’ free bets.
Here are my top five tips for making more money in less time.
1: Leverage Your Time
As good as Each Way Sniper is – there’s typically not much action going on during the week.
Saturdays and big race days can more than make up for this, however.
I suggest priming your chosen bookmaker accounts with funds on such days, and watching the odds-feed up to 30 minutes before the start of each race.
Not only will this reduce the chance of having to deal with non-runners – you’ll probably make more money too.
This is because the increased market volatility can result in some high ROI ‘snipes’ – sometimes in excess of 20%
2: Keep Stakes Below £25 Each-Way
I know that it’s probably going to be tempting to lump on £100 each-way to bank a guaranteed £20 from a selection with a 10% ROI.
But I’ve discovered that these enormous stake sizes will get your accounts limited quicker.
Personally, I’ve found that betting no more than £25 each-way at relatively low odds tends to go un-noticed for longer with the more tolerant bookmakers.
(However, with the likes of Betbright – I’d take them for every penny before they inevitably ban you!).
3: Combine Liabilities
The longer odds typically means dealing with some significant exchange liabilities – even at smaller stakes.
Make sure that you watch Mike’s training video on combining liabilities.
This means that you can place more bets concurrently, and thus get your bankroll working harder for you.
4: Don’t Take Win-Market Arbitrage Bets
Switch off win-market arbitrage bets on the software:
Ok yes, taking win-market ‘arbs’ will boost your ROI enormously.
But they’ll get you banned in half the time because they are so obvious to the bookmakers’ trading teams.
Conversely, place-market arbitrage bets are much harder to detect.
5: Rotate Bookmaker Accounts
Hammering one bookmaker consistently will lead to a swift closure of that account.
That’s why it’s a better idea to spread your each-way arbs across several bookmakers.
This also allows you to place multiple each-way bets on the same race – increasing your bet volume and thus your profits.
(Bookmakers don’t like it when you place multiple each-way bets on the same race).
3 Bonus Strategies to Boost Your Profits
Each Way Sniper comes with some additional software and strategies.
Here are three ways to further boost your long-term profits with Each Way Sniper.
#1: Extra Places
Each Way Sniper comes with dedicated software that allows you to exploit the bookmakers’ ‘extra places’.
That is, by placing an each-way bet on a qualifying race and laying it off, you could land a ‘huge’ double-payout when the horse finishes in the extra position.
There’s also software for doing this in the golf markets too.
#2: Let the Place Part Run
This strategy isn’t explicitly included in the training.
But laying off the win part of the each-way bet and letting the place part run is an effective way to increase the long-term value of your bets.
This is because you’ll not be paying commission on the place part of the lay bet.
Obviously, this is not 100% risk-free.
I tried this for a while and I had some good results over a relatively small sample size.
#3: The Each Way Value System
Select ‘Value System’ from the Each Way Sniper menu.
And Mike will explain how to set up the software to maximise the long-term value of your bets to the absolute maximum.
You’ll not be laying off any part of your each-way bookmaker bets with this variation of the system.
But you’ll make more money over time because you’ll not have to factor in Betfair’s 5% tax on winning lay bets.
(It also removes the non-runner issue completely).
This is a high-risk strategy and it’s not for beginners.
Here are some of my recent results:
Start Making Money With Each Way Sniper Today
Each Way Sniper is one of the few betting systems that allows you to make ‘guaranteed’ money from betting.
Because by backing and laying to exploit the bookmakers’ each-way pricing mistakes – you can lock in a profit no matter which horse wins the race.
This is one of my favourite systems for making money online on my bonus-banned bookmaker accounts.
And I’d recommend it to anyone who’s trying to ‘do matched betting’ without relying on free bets.
Click the button to find out more about this superb product in my Each Way Sniper review.