If I had to guestimate the percentage of folk, whining on social media about being restricted by Bookmakers these days, I’d put the number, who turn an annual profit from their gambling, in excess of 90%. So the conclusion is these folk want betting firms to operate their accounts when they know they would lose. The stuff of fantasy.
To people old enough to remember doing their conkers to those same bookies ever since they left primary school, it’s little wonder they complain so vociferously. The attacks on the gambling industry (I don’t mean gaming here, which cannot lose!) border on vitriol. If you lost your shirt to bookies, and have now turned the tables on the same – and find yourself factored? Well I accept the grapes must be on the sour side. I would comment, however, that the battle back then was fairly won between punter and Bookmaker. There was little antipathy. Accounts were rarely subject to any restriction. Markets were sustainable. Casinos were not online. Bookmakers made no attempt to offer markets in Challenger tennis matches, Chinese soccer or European handball.
There’s a difference these days. And it’s little understood by those who haven’t embraced the era of Exchanges. You can now guarantee yourself a profit, sitting in your underpants going blind staring at Betfair and price comparison sites- for the lucrative, and simple, arb.
What is arbing? Put simply, take 7/1 your selection from the Bookmaker when the exchange has suddenly contracted to 13/2 or even less, lay it back on the exchange and lock in a guaranteed profit. There are more complex methods than this, but the outcome remains the same. Provided the bookie continues to lay you wagers which exceed the exchange odds, you’ve found yourself a lucrative, tax free, risk free income. All the better- you don’t need a gambling commission license whilst you operate your backing and laying business.
Until the bookie notices that every bet you give them was laid at a price greater than was available on Betfair. That’s when the toys smartly leave the pram. You’re operating a business, locking in an income off of the Bookmaker, not the exchange. Because the arber reaches for the bookie first. And the exchange always represents ‘worse value’ in this relationship. For this reason money traders tend to open several accounts, in different names. Female online accounts routinely used as conduits for money traders. Bet365 identified one of those, rather infamously after ‘she’ had won a million pounds off of them.
For Geoff Banks Online, we notice these characters when our system highlights the constant trades on selections which are greater than exchange odds at the point of sale. In other words, we could have laid the same bet for less. That’s the constant, the arber will only trade when the bookie is considerably out of line. For this reason, the money traders offer the Bookmaker spectacularly poor value. They utilise specialist tools to identify when Online firms odds are out of line with the constant liquid exchange markets.
What’s changed? Well, you can’t lose operating this simple scheme. Scream your bollocks off if you wish, but everyone knows the game is up, except you.
Money traders rarely play in major sporting events. The World Cup, Cricket finals, major soccer games, Cheltenham Festival races. The markets are steady – and well defined. They’re fiddling about in Italian Division 2 football. A maiden at Southwell. The sub markets firms offer on an event, such as first goalscorers, where they’re ahead of the Bookie is behind on information as to an injured striker being replaced.
For this reason, I take the view these people aren’t the type of customers I view as genuine. If you’re not interested in a bet in the Champions League final, or the Gold Cup, you’re hardly a punter – are you? This is the defined difference between Trader – and Punter. Unashamedly we serve the needs of the latter. Win or lose. I don’t believe in offering an unlicensed individual, who pays no taxes, and adopts no risk on what he does a living.
There are a few traders think they’re excessively clever in being able to ‘beat the book.’ Remember for years they were as muggy as everyone else. They take to Twitter in blessed anonymity to tell a bored community what geniuses they are, how gutless betting firms have become. Said individuals make money on a particularly small scale, or trade so poorly they actually show a loss. No self respecting business would make a giant profit, and then scream at those who feed his income.
Common to all Twitter rants on the subject, ‘bookies only want mugs.’ Of course said remarks go a long way to bigging up self-worth. No Sir, Bookies don’t relish battling against someone utilising specialist trading software to turn a guaranteed profit. If you’re one of those who whines about this on social networking, you must be some kind of fool. Business is operated, in all sectors, for profit. Amazon don’t trade a lamp for less than they bought it for. Would you be complaining that they seeked to make profit from you?
Modern betting companies do have the necessary skill-sets to build algorithms to track exchange odds, and never offer a price greater then the same. There are several pitfalls to this apparently simple solution. One – competing with Supergiant Bet365, who spend a great deal of time offering odds greater than those available on exchanges. Few companies consciously bet to a loss by design.. normally such actions would be properly scrutinised in my fantasy world
Second, offering exchange odds would see you in the poor house right quick. Gambling companies have colossal expenses and couldn’t bet near to those of the exchange and make profit. Nor is the symbiotic relationship of place markets mirrored on the exchange.
Third, the huge range of markets available would dwarf exchange offerings. Whilst main markets on Betfair might capture some liquidity, most of the sub markets offer loose change to bet on. Typically a Bookmaker offers a far wider array of markets, thereby accepting extra risk, and much bigger bets across their markets.
Finally, and perhaps notably, whilst bookies tend to parallel exchange odds, the average lay to lose in firms like William Hill wold regularly trump six figures. Whilst the same selection on Betfair would typically offer a user £20, or less, at the same odds. Exchange liquidity haa all but collapsed – for by that, it still governs betting odds.
In my Company we find ourselves battling daily with the aforementioned line trackers. Some when factored take it on the chin, pack up their various accounts in their Sisters name, and move on to the next firm. We adopt a hands on approach to every account. The system might identify an arber, but we always take a good look at the range of bets a customer offers us, before we might have to factor someone. We are well aware of the criticism, fairly levelled at gambling firms, that some decisions are ‘knee jerk.’
What is useful in life is a bit of understanding of each other’s position. The ethos of my company is to offer a tailored betting solution to those who want the value of big betting, with the personal nature of a smaller firm than Skybet. If you like to ring your bet in, or have a question, we will answer the phone within 4 rings and won’t be asking you to tell us what the mileage was on your first car.
We cannot compete head on with major gaming companies, bringing in profits gained in grey and yes, black markets abroad, to unashamedly bolster their presence in the UK, whilst the regulator looks away, and afford the money traders a living too.We will offer a bespoke online betting experience. A clever mobile app, and a slick website. We will listen to our customers when they tell us what they want our software to do for them.
So to the traders, I hope you will respect my candour here and give us a respectful swerve. You may not like my forthright style in explaining to those interested in the topic, why we have to factor some accounts. Geoff Banks Online stand alone as an independant in offering such as best odds guaranteed with our weekly deposit bonus scheme, and fairly laying our customers a bet. Let us get on with offering that level of service to those who want a bet on the cup final, or the Grand National without restriction, or penalty, and you take your line tracking activities to Bet365. No firm deserves your business more than they do.
Remember, when the fun stops, you’ve probably gone to bed..
Now here’s a couple of links to our mobile apps, for the ‘genuine’ sporting customer. Because we do promise to make you feel welcome and reward your custom.