If you’ve been following me on Facebook you’ll know that I am trying to build up a second income of £4K per month using risk free and low risk betting.
It’s going more slowly than I expected but to be fair to myself I have had to learn a whole new technique called arbitrage (or Dutching). Now that I have got the hang of it something has been bugging me – I don’t understand why it pays back so slowly.
Most of the bets I place generate between £2 and £5 for each £100 I bet. Now that’s a bloody good return on anyone’s money. I am getting between 2% and 5% per day whereas with a bank it’s 1% per year at the moment.
But, if I want to earn £1K per month out of it I need to place around 15 £100 bets per day, or around 450 bets per month. As a full time job that would be very possible but as a second income it’s a big ask.
Then it dawned on me. The reason it pays out so slowly is because my stakes are too small. If I can find a single 5% arb each day and bet £1000 on it then I know I will make £50 per day which will easily get me to £1K per month.
So why not do it? Just go out and bet £1K tomorrow on a risk free arb. Job done! Well the reason is because arbing is not as risk free as you would think.
First off, if the bookmaker declares a palpable error in their odds then one side of the arb gets wiped out. Don’t get me wrong, you can fix it, but there is always a loss. That isn’t a problem if you have built up a nice bank with smaller bets, but if you get hit with a palpable error on your first £1k bet that’s a big chunk of money.
The second and probably bigger issue is finding a bookmaker that will accept bets that large. If you win too much with many UK bookmakers they restrict your bet size. There are some bookmakers that will accept larger bets and not restrict you but none of them are available in the UK unless you use a betting broker, and that means trusting a third party with your money.
Ultimately it is a lack of trust in what I know to be true. It’s so counter intuitive that you can win every bet that you ever place that even my brain struggles with it when it comes to large amounts like £1k. I need to be brave and bet larger stakes.
The solution is to keep building the bank with smaller bets and compound them month on month until I get into a position where I only need to place 3 or 4 bets per day to hit the £1k mark. Then it becomes a no-brainer!
Wish me luck!
Also, as an aside, I think I have worked out how to beat Blackjack. I will be testing my little theory over the coming weeks and if it turns out to be correct I will create a course which I will sell. Beating Blackjack is like a holy grail of gambling and will be worth a lot of money to a lot of people!