Well, we should probably ask Betsafe what they consider to be an arbitrage player, but I'll make a guess.
Friend Affiliate 1 sets up and affiliate account where friend player 1 bets $5,000 on red on roulette.
Friend Affiliate 2 set up an affiliate account where friend player 2 bets $5,000 on black on roulette.
Player 1 wins, doubling his money. Affiliate 1 gets nothing.
Player 2 loses. Affiliate 2 gets say 25% of $5,000 or $1,250.
Net across the friends is a win of $1,250.
When you can be an affiliate with a small number of players (1 is best) this sort of collusion is relatively trivial to arrange.
In the situation outlined above the casino will pretty consistently draw the short straw.
And if there are no loss carry forwards, you can keep doing this as long as the gaming site will let you. The house edge is not large enough to overcome the affiliate payments when playing arbitrage like this. If you can do it on the same event on both sides (such as betting on a sporting event), you can easily produce guaranteed wins.
Michael
|