How Are Softbooks Profitable?
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How Are Softbooks Profitable?
Hello. I am new to arbing, and the concept of soft bookies. If you are an arber with a soft bookie who charge 5% of your winnings, how can that be profitable? Because if you make a $100 bet at 2.00 odds with a 3% arb profit, and the bet wins at the soft bookie, you only profit $3, but doesn't the book take $5?
Last edited by Cash on Sat Apr 04, 2015 6:48 am, edited 1 time in total.
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Re: How Are Softbooks Profitable?
Taxes? Forgive me, as I am a noob, but doesn't a 5% tax on winnings outweigh the value of most arbs? I don't see how any arber could profit from betting at betfair, or anywhere else that charges more than 3% on winnings. Am I missing something about arbing with soft books?
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Re: How Are Softbooks Profitable?
Most arbs yes, but not all of them. Some people continue operating with this 5%, even with a filthy 6.5% charged from betfair in several countries.Cash wrote: doesn't a 5% tax on winnings outweigh the value of most arbs?
We all miss a lot of things. Even though there are various level of experience, i don't believe that there is someone among us that knows everything about arbing.Cash wrote: Am I missing something about arbing with soft books?
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Re: How Are Softbooks Profitable?
I see, thanks for that, good to know. I'm sorry, I might have misused the word softbook as well. I'm not sure if I meant bet exchange. I feel like I'm trying to wrap my head around so many different things and have so many passwords and book names in my head, I'm struggling to make sense of it all before I devise a strategy to actually make money.
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Re: How Are Softbooks Profitable?
Thanks, some users still continue with it though.Most arbs yes, but not all of them. Some people continue operating with this 5%, even with a filthy 6.5% charged from betfair in several countries.
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Re: How Are Softbooks Profitable?
I had same question. I maybe wrong but number of sites deduct 5% from winnings not the whole sum.
For example
Arb: 5%
Pos1 :10 EUR
Pos2: 10 EUR
Total stake: 20
Profit 20*0,05=1 EUR
Site1 deducts 1Eur*5%=5 cents as taxes
Therefore it's not so bad
For example
Arb: 5%
Pos1 :10 EUR
Pos2: 10 EUR
Total stake: 20
Profit 20*0,05=1 EUR
Site1 deducts 1Eur*5%=5 cents as taxes
Therefore it's not so bad
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5% of 10 (profit on 2.00 odds) is 0.5.
so yeah, i guess you lose half your arb with these numbers. With 5% tax, the arb would have to be greater than 2.5% to profit anything. If the arb is 3.5%, its really a 1% arb after 5% tax.
Re: How Are Softbooks Profitable?
5% of 20 (total stake) is 1.(total profit)starter wrote: I had same question. I maybe wrong but number of sites deduct 5% from winnings not the whole sum.
For example
Arb: 5%
Pos1 :10 EUR
Pos2: 10 EUR
Total stake: 20
Profit 20*0,05=1 EUR
Site1 deducts 1Eur*5%=5 cents as taxes
Therefore it's not so bad
5% of 10 (profit on 2.00 odds) is 0.5.
so yeah, i guess you lose half your arb with these numbers. With 5% tax, the arb would have to be greater than 2.5% to profit anything. If the arb is 3.5%, its really a 1% arb after 5% tax.