Arbitrage betting is a strategy where a bettor places bets on all possible outcomes of a sporting event to guarantee a profit, regardless of the result. This is possible due to discrepancies in odds offered by different bookmakers. By carefully calculating the stakes, the bettor ensures that the total payout from the winning bet will exceed the total amount staked on all bets, thus securing a profit. This practice requires precise calculations and quick action, as odds can change rapidly.
How Does Arbitrage Betting Work – An Arbitrage Betting Example
Arbitrage sports betting is relatively straightforward, and bettors can apply this strategy to several instances. Below we look at three examples of this style of wagering and how it works.
1. Two sportsbooks simultaneously provide different prices on a game, so you wager on both to guarantee a profit or break even.
For example, let’s say there are two sportsbooks, BetOnline and XBet with differing odds that create a margin ideal for arbing.
BetOnline offers the following odds on an MLB Game between the Tampa Bay Rays and the Toronto Blue Jays:
- Tampa Bay Rays +110
- Toronto Blue Jays -110
However, at the same time XBet offers the following odds on the same game:
- Tampa Bay Rays -105
- Toronto Blue Jays -105
So, to place your arbitrage wager, you would put down $100 on the Tampa Bay Rays at BetOnline and wager a $105 bet on the Toronto Blue Jays at XBet (making your total wager amount $205).
- If the Tampa Bay Rays won, you’d make a $5 profit. ($100 + $110 – $205 = $5)
- But if the Toronto Blue Jays won, you’d break even. ($105 + $100 – $205 = $0)
Handy Tip:
To work out your profit, use this formula:
(Original stake + winnings – total combined bet amount = profit)
2. You shop around and discover two sportsbooks with different prices on the same prop.
Handy Tip :
This example rarely occurs in significant markets like moneylines for NFL or MLB games, as sportsbooks typically use the same lines as one another. However, it happens pretty frequently on props, as there is no place for bookies to compare prop odds.
Let’s say Bovada listed Mike Hughes’ draft position at over/under 4.5 a few weeks before the NFL Draft, with the over set at +115.
However, MyBookie also outlined 4.5, but with the under at +110.
These odds offer a great margin for arbitrage bets. So, if you were to wager $100 on both, you would make a $10 or a $15 profit depending if the results were over or under.
3. Look out for a line that moves in your favor so you can take the guaranteed profit.
A line isn’t always guaranteed to move in your favor, making this last example less of a standard arbitrage bet and more of an opportunity. However, if you place a bet and the line does move, it provides the ideal chance to take that bet. So, how does it work?
If, for instance, the Toronto Blue Jays open at +110 and you wager $100 on them, but heavy action then moves the Blue Jays to -115, and their opponents, the Tampa Bay Rays, are now flagged at +105. If you then place a $100 bet on the Rays at +105, you will earn either $5 or $10 in profit, no matter which way the game swings.
How to Arbitrage Bet
Arbitrage sports betting requires bettors to sign up with several sportsbooks, making it easy to place bets quickly when they come across a margin in the odds. Below, we take you through the steps on how to sign up with an online sportsbook like BetOnline. Since the process for most of the best sports betting sites is the same, you can use these steps to help you create accounts with multiple betting sites and BetOnline alternatives.
Step One – Register with BetOnline
Launch the BetOnline website and click the green “Join” button. Next, complete your details on the registration form that opens, and choose a username and password. Then, click “Create Account.”
Step Two – Get Verified
After you’ve registered your account, BetOnline will email you a verification link which you must click to activate your new profile. Once you’ve done this, use your new credentials to sign back into BetOnline and access your account.
Step Three – Make Your First Deposit
Next, you’ll need to fund your account. So, click the blue “Banking” button on the homepage. Then, select your payment method from the dropdown menu, and add the amount you wish to deposit. Next, type your BetOnline promo code “BOL1000” in the promo code box provided. Finally, click “Deposit Now” and follow the prompts to finalize your payment.
Step Four – Choose Your Sport
Click on the “Sports” tab on the BetOnline homepage. Then, select the sport you want to place your arbitrage wagers on, for example, football. Next, from the options available for this sport, select the league and match you want to put your money on.
Step Five – Place Your Wager
Once you have selected the game, click on the appropriate line to populate your bet slip with the relevant details. Next, type in the amount you wish to put down on your bet slip. Then, click “place bet,” and you’re done!
While these steps are quick and easy, we recommend signing up with several sportsbooks like this so that you are ready to go when you spot those margins.
Arbitrage Betting Explained
Arbitrage betting involves a bettor choosing a sports event to bet on and finding two or more sportsbooks that offer unique odds for that particular game. Based on the odds offered, a bettor stakes on the possible outcomes at each sportsbook and will either turn a profit or break even, depending on the outcome. Below, we take a closer look at several aspects that influence Arbitrage betting and make these wagers possible.
Handy Tip :
Arbitrage bets work best where there are only two possible outcomes, where the bettor has a 50% chance of winning their bet.
How are Arbitrage Bets Possible?
Sportsbooks make use of different formulae to calculate the betting odds they release based on predetermined stats and conditions. If two sportsbooks publish differing results, this creates a margin between the odds value and offers players an arbitrage betting opportunity.
The more significant the margin, the greater the potential to make a profit. However, it is essential to note that arbing can increase a bettor’s chance of winning but doesn’t guarantee it.
Sports like tennis, where a match has two possible outcomes are more likely to improve the chances of winning, whereas using this system on a sport like soccer, where there are three potential outcomes for a game (either team wins or there is a draw) lowers the chances of a player making a profit.
Handy Tip:
The term “Arbing” means to place an arbitrage bet.
Opportunities for Arbitrage Sports Betting
Sportsbooks use algorithms and coding to determine odds should a particular outcome occur, with the more probable result having the lowest odds and the least likely having the greatest odds. However, depending on the action on the markets and other aspects, these prospects may change, influencing the odds valuations. Since sportsbooks update their odds in real-time, one betting site may show odds vastly different from those provided by others, providing the ideal opportunity to place arbitrage bets.
While searching for these odds manually can take time and may not always be obvious, bettors can use odds comparison sites to quickly identify these opportunities.
What Do You Need for Arbitrage Bets?
Before bettors begin sports arbitrage betting, there are several things they should have in place. We take a closer look at these below:
- Bettors should have open accounts with multiple sportsbooks, preferably with funds already in place. Doing this makes it possible to quickly take advantage of the odds provided in an instance where an arbitrage betting opportunity arises.
- Those interested in placing these wagers should have a quality odds comparison site at their disposal, which will help them to identify opportunities at arbitrage betting sites quickly.
- Make sure that the arbitrage betting sites you use offer an arbitrage formula that makes it quick and easy to calculate the profits on a particular bet and how much to put down to earn a worthwhile return.
- Ensure you have relatively deep pockets when implementing this strategy. As seen in the examples provided earlier in this guide, the profits and sometimes the margins are relatively small, making it necessary to put down a fair amount to get a good return on your investment.
Arbitrage Sports Betting Tips
While getting this type of strategy right can take time and practice, having a few tips makes it easier to get started. So, to help you begin your arbitrage betting journey, we offer you our top five tips below:
Tip One: Use Arbitrage Betting Software
Using odds comparison sites like RebelBetting will put you ahead when placing arbitrage wagers. In addition to highlighting opportunities for these wagers, they also make it easier to calculate your win percentage to see whether it would be a worthwhile bet.
Tip Two: Always Keep an Eye Out for Opportunities
In addition to using software, keep a keen eye on what is happening, especially when it comes to prop bets or instances where lines have shifted in your favor, as these provide additional opportunities to place lucrative bets.
Tip Three: Double-Check Those Calculations
If you choose to find your own arbitrage bets, make sure to double-check your formula and the calculations to ensure you end up with the best outcome and a profitable wager.
Tip Four: Keep to Two Outcomes
Stick to placing these bets on sports or events where there are only two possible outcomes. In addition to increasing your chances of winning, these are less tricky to calculate and manage.
Tip Five: Ensure Your Betting Accounts are Funded
Spending time depositing funds into your betting account and waiting for them to reflect before you can place your bet could mean you miss out on an excellent opportunity. As a result, we recommend keeping your accounts at your various sportsbooks funded at all times, so you can take advantage of the odds when the opportunity presents itself.
Sports Arbitrage Betting
While bettors can apply arbitrage betting to most sports, some are better suited to the use of this strategy than others. Typically, this system is best used for sports where there are only two possible outcomes, like football, tennis, basketball, hockey, baseball, Esports, and UFC. However, sports where there are several outcomes, like soccer, golf, and horse racing don’t offer the best options for these wagers. Below, we look at some of the most popular sports for arbing.
Football
Football offers players the opportunity to back one of two teams to win the game, making it an ideal sport for arbitrage betting. Additionally, there are several props that allow for these wagers too, which bettors can find by visiting the best NFL betting sites.
Basketball
Like football, basketball offers players moneyline bets on which team will win, making it easy to identify arbitrage wagers. Additionally, this sport comes with several props and is covered by several sportsbooks, making it easy for bettors to find the best NBA betting sites for competitive odds.
Tennis
Although there are several games that make up a tennis match, there can only be one overall winner, again offering bettors a 50/50 option that provides excellent odds for arbing. The best tennis betting sites will cover most games and several top tournaments like Wimbledon which offers bettors more opportunities to spot those margins.
Esports
Although slightly different from the other sports on our list, Esports also provide excellent arbing options, as there is only one team that can win. Additionally, the best Esports betting sites offer several props on these games too, which provide extra opportunities for varying odds margins and arbitrage bets.
Is Arbitrage Betting Legal?
No legislation exists ruling that arbitrage betting or any related activity is illegal. As a result, this betting strategy is perfectly legal. But, because it sees sportsbooks paying out where they would rather take in funds, it isn’t a popular practice among these sites. As a result, many sportsbooks have regulations prohibiting arbing on their sites.
Arbitrage Betting Risks
While arbitrage sports betting makes it easier for bettors to gain a profit, they do come with several risks. Below, we consider those risks more closely and what they could mean for bettors:
Updated Odds
Since sportsbooks update their odds in real-time, there is a chance that a bettor who takes their time in placing their wager could miss out on the original odds, which could, in turn, disrupt their arbitrage wager. As a result, it is best only to place your stake when you are sure of the odds margin and be quick in placing these bets.
Bet Denied
If a bookie catches a discrepancy in the odds value, they can disable the bet slip before you can place your stake. As a result, a bettor will miss out on this arbing opportunity and, if caught by the sportsbook, could have their account blacklisted, particularly if the site is one with rules against arbitrage betting.
A Voided or Cancelled Wager
In an instance where a sportsbook picks up on a discrepancy in the ods on a bet a bettor has already wagered, they have the right to cancel the bet. While some bookies may leave the bet, others with a firm stance against arbing may void the wager and suspend the bettor or even block them permanently.
False Arbitrage Odds
Some marginal odds values offered by sportsbooks may not be valid opportunities to place this style of wager. For example, a sportsbook may use these odds to encourage more bets but then change them, resulting in bettors losing funds rather than gaining profits.
A Blocked Account
Bettors who earn a consistent winning streak by using arbitrage sports betting practices may catch the attention of the sportsbook. If the bookie delves deeper into these earnings and realizes the profit is made from arbing, there could be consequences. The action the sportsbook takes will depend on its stance on arbing and what clauses it has in its rules and regulations. For instance, a betting site with a firm stance against this sort of wager may suspend or even block a bettor from using the site again.
Arbitrage Betting – The Pros and Cons
Despite posing several risks, arbitrage betting has several advantages too. Below, we take a look at the pros and cons of this betting strategy:
Pros:
- Generous welcome package
- Wide variety of live dealer games
- Responsive customer support
- Speedy payouts
Cons:
- Requires bettors to seek out opportunities
- Players need a relatively large bankroll
