Arbitrage and Affiliate commissions

[pdupre1961]

Can anybody explain clearly how affiliate commissions work. Especially, want to know about Betfair and UK bookmakers considering all the 'FREE' offers out there.

I'm thinking that somebody must be making money from me betting (and losing) at Bookmakers when I place a back bet at say BET365 and lay off on Betfair for a small profit.

Paul

[nomadic]

If you arbitrage between Betfair and a bookmaker (Bet365 in your example) and lock in a profit for yourself, then it is the bookmaker that is losing out in the long run. Sure, the losing side of your arb may sometimes be on the bookmaker's side (giving them a short term gain in that particular instance), but in the long run, those are losing bets for the bookmaker.

Also, be very careful: if it's rather clear to the bookmaker that you're only placing bets when the odds are higher with them than at Betfair, then you will very quickly be identified as an arber, and find your maximum bet amount with them severely limited.

[LeTiss 4pm]

I agree with nomadic, you won't last long I'm afraid

I had a cracking 2-3 months of earning brilliant money through arbing. I had 14 betting accounts, but now just have 2. The others either closed me down, or restricted me to £2 stakes

[Marshy10]

Hi Nomadic,

"Sure, the losing side of your arb may sometimes be on the bookmaker's side (giving them a short term gain in that particular instance), but in the long run, those are losing bets for the bookmaker."

Can you please explain why in the long run these bets are bad for the bookmaker?

[Dobbin]

Hi there

There is a Service out there that can make you money continually from "Free" Bookmaker bet offers

[Boing]

There are loads, all getting a backhander from the bookies no doubt, but you will get closed down very quickly when you do it. Nice idea but doesn't work long term.

Don't think Paul was asking that though. I think he was looking at the overall impact. I guess its a marketing cost for the bookies.

[pdupre1961]

Yeh, what I was asking -

Is anybody making money out of my losing bets, whether with the bookie or Betfair.

I do not remember how I signed up for each bookmaker or Betfair as it was 2010, but I must have gone to their site originally via another website.

So are there affiliate commissions being paid out for my losses...

[Dobbin]

There are loads, all getting a backhander from the bookies no doubt, but you will get closed down very quickly when you do it. Nice idea but doesn't work long term.

Don't think Paul was asking that though. I think he was looking at the overall impact. I guess its a marketing cost for the bookies.

I only know of one and it does make money over the long term.

[CaerMyrddin]

Yeh, what I was asking -

Is anybody making money out of my losing bets, whether with the bookie or Betfair.

On average the bookies will be losing against you, not the opposite. They will eventually limit you, but it's a nice way to pump your bank in the meanwhyle.

[nomadic]

Yeh, what I was asking -

Is anybody making money out of my losing bets, whether with the bookie or Betfair.

I do not remember how I signed up for each bookmaker or Betfair as it was 2010, but I must have gone to their site originally via another website.

So are there affiliate commissions being paid out for my losses...

Hi Paul - in short, yes, to my knowledge it's possible that an affiliate could possibly get some % of the amount you bet, and as far as I know, it probably doesn't depend on whether or not you lose your bet.

My understanding is that most affiliate agreements just give back a small % of the amount bet. Since the bookmaker has full control over the odds set (and not the affiliate), they are generally taking the risk, and if the bookmakers set odds that create an arb opportunity, well, that's the bookmaker's fault and beyond the control of the affiliate.

Unless of course the affiliate starts abusing the arrangement to facilitate his friends/relatives to only bet on arb opportunities... then the affiliate agreement could get terminated... then again, perhaps not... the marketing guys at bookmakers are not always the brighest bulbs and may not necessarily fully grasp the concept of "arbitrage" (the key point being that the department where the actually bookies work is usually in control of decisions to limit players, but the marketing department is usually in charge of concluding affiliate agreements)