There are people in the UK teaching this very strategy for thousand of pounds. It works and I was doing it a year ago. This strategy requires knowledge of arbing and betfair trading.
How this strategy works is you back at the sportsbook and then lay at betfair creating a wash (ie no profit or loss). The secret is you become an affiliate of the sportsbook, and then make 25% of the loss taken on the back bet.
So essentially you are making a risk free arb type bet. If the back bet loses you earn 25% of that losing back bet. If the back bet wins you lose the corresponding lay bet at betfair creating no profit or loss.
1. Open a betfair account and a moneybookers account.
2. Become an affiliate / partner of a sportsbook. Affiliates earn 20-30% of all losing bets that sign up under them. You may need to create a website to put banners and articles onto. When approving an affiliate account the affiliate manager checks the applicant and will want to see a real betting type website.
3. Sign up for the sportsbook under your own affiliate account.
4. You do a dutch type bet, backing at the sportsbook and laying at betfair. It is easiest to do this with UK horse racing just before the race as the lines are moving everywhere. With soccer or other sports you can still do it but the odds are never exactly the same each side.
5. Make sure the odds are around 3/1 to 5/1 and as close as possible. Example 3.00 at the sportsbook and 3.05 at betfair.
5. Over time you will lose most back bets at the sportsbook, while gaining a bigger account at betfair. Use moneybookers as a conduit to move the betfair money to your sportsbook account. Betfair to moneybookers, moneybookers to sportsbook. It can be done in minutes.
Back $500 on horse 12 at odds of $4.20.
Lay $156.25 ($500 liability) on horse 12 at odds of $4.20.
If horse 12 wins or loses, there is no profit or loss. But as a sportsbook affiliate you earn 25% if it loses, which is $125 profit.
Your ability to do these bets is only constrained by the size of the betting pools in betfair. It is difficult to lay more than $500 on any horse just before a race. With soccer and other games the betting pool is huge but the betfair odds are always longer than the sportbook price, creating a small loss every bet. This small loss is easily made up from the affiliate commission.
Negative carry over - This is important but difficult to explain. Many sportsbooks have what is called negative carry over. For example if you place a $200 back bet at 4.00 and it wins, your affiliate account will show a -$600 loss. This loss must be made up BEFORE they pay any 25% commissions. Some sportsbook carry over negative account balances to the next month. Do not bother with these sportsbooks. Only become an affiliate of those who do not have negative carry over. No negative carry over means that even if a back bet did win, this amount get cleared on the 1st of the month and you are free to earn your 25% commission again.
So to wrap up, you want to place one bet a month at 10-12 sportsbooks. If the back bet wins there is no profit. If the back bet loses you earn 25%. Betting on horses at 3/1 to 5/1 they generally lose at a rate of 8 out of 10 times or better. You can earn about $2000k a month quite easily.
Some people may say well how is it possible to sign up to a sportsbook under your own affiliate account? Well they tend to not care what small stake losing betters do. There did not seem to be any account cross checking back in 2008 when I did it.
Any questions ?