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This arbitrage betting guide uncovers everything, from how it works, examples, pros and cons, legality, and some tips on how to make the most of your arb betting. If you are new to arbitrage sports betting and want to learn how to arbitrage bet, then read on. We’ll kick things off by addressing the fundamentals, and then head into some example arb bets to explain the mechanics.
What is Arbitrage Betting?
‘Arbing’, as it’s known, is a trading method that guarantees a profit, regardless of the outcome of the game or event. This is done by taking advantage of price discrepancies within markets. It’s a method you can use on all of the best online sportsbooks and typically yields small returns, but the element of risk is completely avoided. Arb betting appeals to risk-averse gamblers who are happy to make small but steady gains.
How Does Arbitrage Betting Work?
Bookmakers set odds independently, and sometimes their prices on the same event differ significantly. An arbitrage opportunity exists when these differences are big enough that by covering all possible outcomes across different bookies, you can lock in a profit.
A simple example can be found in a two-way win market like a tennis match. If you bet player A pre-game at odds of 2.2, you will have an arbing opportunity if player B’s odds go above 2.0 at any point. If you bet £100 on player A at 2.2 (returns £220) and player B hits 2.1 during live betting, you can place a £110 bet, which returns £221. In this example, you would win £10 if player A won the game and £11 if player B did so – you’ve guaranteed yourself a profit.
Examples of Arbitrage Betting and Arbitrage Bets
Arbitrage in sports betting can be quite complicated to understand, especially for rookie gamblers, so some examples will be a big help. Let’s look at three different types of arbitrage betting examples.
Total Points Movement
Let’s say that the starting market for total points in a game between the Dolphins and the Falcons is set at -110 for Over 32 points and +110 for Under 32 points.
In this scenario, the odds are factoring in that both teams have solid offensive units.
Let’s say you back the Under 32 points at +110 for $100, but some late team news sees an injury to the Dolphins quarterback, meaning they are likely to score fewer points.
This late team news now sees the Over 32 points drifting to +105 while the Under 32 points are now cut into -110 because it is likely we’ll see fewer points with one team weakened offensively.
You can now bet on the Over 32 Points for $100 at +105.
This now means you hold two bets.
1. $100 at +110 for Under 32 points to return $210
2. $100 at +105 for Over 32 points to return $205
You are betting $200 in total and are now guaranteed a minimum profit of $5, whatever the result.
If you are a fan of NFL betting, then one of the sportsbooks you may want to check out for the best odds is BetWhale.
In-Game Opportunities
The fast-paced environment of live betting means that sportsbooks will often take slightly different views. Let’s say the San Francisco 49ers go 14-0 up against the Detroit Lions, their in-game price with one sportsbook is -500, and you want to bet $100 in total.
Another sportsbook has the Lions’ live odds as +700. This means, providing you are fast with your fingers, you can back both outcomes ($87 on the 49ers to win $104.4 and $13 on the Lions to win $104). No matter which team wins the game, you will have made a profit of around $4 for a $100 outlay (4% ROI).
The only variable is the draw, so you need to make sure you are betting with a sportsbook that gives a push on a drawn game.
Support for your Horse – Back and Lay Arbitrage
If you are a horse racing betting fan, let’s say you fancy a horse at Churchill Downs at odds of +1000 (9/1), but you expect it to come in for strong support, and the price drops to +600 (5/1)
As per the image example above, you back a horse pre-race for $100 at decimal odds of 5.2, which would give you a $520 return (minus commission if this bet is placed on an exchange) if the horse wins.
However, there is support for your selection as the race looms, forcing the odds down to 4.0. You can now lay this horse for $130 at odds of 4.0, which would guarantee you a $29 profit no matter what happens to the horse in the race, win or lose.
Arbitrage Betting Pros and Cons
So, does arbitrage betting work for everyone? That depends on what type of gambler you are. Here, we lay out the main pros and cons of arbitrage sports betting.
Pros:
- Guaranteed profit – it’s the holy grail of betting
- In-play betting has significantly increased the number of arbing opportunities
- Using the ‘cashout’ feature means you don’t always have to use different sportsbooks
Cons:
- Odds can change quickly, making your position vulnerable
- Small margins mean you need to wager large sums
- Sportsbooks can limit stakes at any time
Is Arbitrage Betting Legal?
Generally speaking, arbitrage betting is a perfectly legal pastime. However, sportsbooks, as a rule, are not keen on accommodating arbers. It isn’t always easy for them to spot an arber, especially one that regularly bets both sides with different sportsbooks.
However, if they believe you are an arber, you risk having your bets restricted or worse, the account being closed altogether. The key? Try not to make it obvious. If you are someone who regularly bets with a sportsbook that offers the best odds about a particular outcome, then you risk blowing your cover with the layers.
Here’s a quick breakdown of the legality of arbitrage in sports betting around the world.
| Jurisdiction | Legal Status | Sportsbook Response |
|---|---|---|
| UK | Legal; not criminalized | Common to restrict or ban arbitrage accounts |
| US | Legal in most states | Restrictive actions are likely from sportsbooks |
| Europe | Generally legal; varies by country | Terms-based enforcement common |
| Asia | Varied legality (stricter rules in China + Japan) | Mixed enforcement; risk depends on location |
The Fundamentals of Arbitrage Betting
Sports arbitrage betting is popular because there are now so many different sportsbooks offering odds on every event. The more sportsbooks there are, the greater the opportunity for odds discrepancies; that is where arbitrageurs can get an angle against the sportsbook.
If you want to take arbitrage and betting seriously, you must have access to some sort of aggregator website that can make it easy for you to cross-reference odds from different sportsbooks.
You can also look at sourcing arbitrage software that can place your bets automatically, following a set of parameters you place into the software.
Finding an arbitrage opportunity is one thing, but you must then be in a position to evaluate potential returns and then act on both sides of the wager with speed. This is especially the case if you are monitoring in-game markets because they can change so quickly or suspend in the blink of an eye. Arbing on live betting is not for the faint-hearted.
Start by betting on fixed odds markets first, like over/under markets
Tips for Arbitrage Sports Betting
Here are five tips that we think are crucial if you are to make the most of arbitrage opportunities.
- Make sure you have as many funded accounts as possible
- Be set up to cross-reference odds speedily and accurately
- Set aside large chunks of time to find arbitrage bets
- Planning is key. Find yourself a niche area, such as a particular group of markets, because there are simply too many markets available nowadays for you to be able to keep on top of them all.
- Consider using automation software. If you can create (or buy) a program that does the hard work for you, this is a game-changer.
Tips for Avoiding A Sportsbook Ban or Account Closure
One of the biggest hurdles you’ll face when arbitrage betting is the risk of being banned by the sportsbooks. Here are three tips to stop you from being banned or having your accounts blocked.
- Make sure not to place bets with odd numbers like $53.37 as a stake. This is a surefire way of showing the sportsbook you are arbing.
- Instead of placing a $500 bet, break it down into 5 x $100 bets if possible. A sportsbook will flag players who play smaller stakes and then suddenly start betting in larger amounts.
- Diversify your wagers. Don’t place bets with the same two sportsbooks regularly. Make sure to mix and match. Arbers should be using a minimum of 10 sportsbooks to help avoid detection of their arbitrage wagering.
Alternatives to Arbitrage Betting
While arbitrage is a sound betting system, especially when applied to sports betting, the small margins and long research periods mean it’s not for everyone. So, what alternatives exist for players who want to implement effective betting systems? Here are just three that might interest you:
Responsible Gambling
It’s important that, however you bet, you do not do so beyond your means. It’s also important that you don’t disregard other areas of your life, such as family and friends, to focus on gambling.
If you think you might need help, or you know someone who might, take a look at our Responsible Gambling page, where you will find loads of information about steps you can take.
Resources
The link below is a useful study that was undertaken by Queen Mary University and looks at arbitrage betting on European football.
