Arbitrage Betting: How It Works

Betting is a popular hobby of numerous sports fans worldwide. For instance, 73.5M American adults will wager only on the NFL 2024 season to try their luck. However, I know that along with traditional wagering methods, bettors sometimes try arbitrage betting in various bookmakers to get more profit with low risk. I have also tried such a method, and based on my experience, I have prepared a detailed review of this topic. Therefore, if you have never tried arbitrage betting, you have a good chance of understanding its main features and pitfalls.

What Is Arbitrage Betting?

Arbitrage betting means wagering on opposite sides of the same sport’s competition. As an example, you bet on a favorite in the first crypto sportsbook and place a wager on the outsider in the second one. The trick is that you need to bet at odds that guarantee a profit, regardless of the match result. Arbitrage wagering can be real if you bet on one event in various sportsbooks with odds that will give you a profit. 

Does arbitrage betting work in one sportsbook? Absolutely, no. As far as I know, betting websites do not allow an in-house arbitrage opportunity as it is breaking the rules.  No betting platform enables the creation of two accounts on the site for arbing.  Moreover, you cannot create a profile by using your relatives’ documents to bet on opposite results. It is considered as fraud activity.

If the site suspects you of such actions, platform managers will probably ban or limit you rapidly. Therefore, I advise choosing a few betting platforms for arbitrage wagering. Fortunately, you may find a myriad of reputable platforms on the SafeHamsters website.

If it seems tedious, I may share with you an example of arbitrage betting explained. Let’s imagine that you find two sportsbooks featuring the football match between the Kansas City Chiefs and the San Francisco 49ers. 

So, the first bookmaker offers -110 on the Kansas City Chiefs (you need to wager $110 to win $100) and +150 on the San Francisco 49ers (the bet will be $100 to win $150). At the same time, the second sportsbook proposes -120 on the Kansas City Chiefs (you need to wager $120 to grab $100) and +140 on the San Francisco 49ers (bet $100 to receive $140).

Now, I calculate arbitrage opportunities. Regarding the Kansas City Chiefs, in the first sportsbook, it will be 10 / (100 + 110) = 0.478 (or 47.8%). On the second betting site, it looks like 120 / (100 + 120) = 0.545 (54.5%). In contrast, I got 100 / (150 + 100) = 0.4 (40%) for the San Francisco 49ers on the first betting site and 100 / (140 + 100) = 0.417 (41.7%) on the second platform.

Thereafter, I need to estimate the total potential of arbitrage for the Kansas City Chiefs: 0.478 + 0.545 = 1,023 (or 102.3%). Of course, I use this formula for the second team as well: 0.40 + 0.417 = 0,817 (or 81.7%). Thus, I see that the total implied probabilities for the Kansas City Chiefs and San Francisco 49ers exceed 100%, and there is a potential for arbing.

Types of Arbitrage Betting Situations

Typically, bettors are faced with two variants of arbitrage in sports betting: same-time arbitrage and price movement. When you know the essential principles of these situations, you can count on the necessary results. To make your wagering process easier, I describe two arbitrage betting situations in the review below.

Same-Time Arbitrage

When it comes to the same-time arbitrage, you need to use two different betting sites with opposing prices on the chosen event. Such an approach creates an overlay for bettors. In most cases, you can benefit from arbitrage wagering on derivative markets, not in major events.

If you ask me about my personal standpoint, I can tell you that I am not a big fan of same-time arbitrage betting. Look, I can describe a few drawbacks of this approach. First, same-time betting has limited profit margins. Thus, the potential profits are frequently relatively small compared to the total sum wagered. 

Besides, same-time arbing requires a lot of time. I spent numerous hours identifying suitable arbitrage possibilities and monitored odds across multiple sportsbooks. Last but not least, betting websites quickly adjust their odds to eliminate the discrepancy. Therefore, even though I found suitable options, they existed for a short period.

Price Movement Arbitrage

Price movement arbitrage is when you wager a line, and it goes in your favor. Then, you place a stake again to reduce the possible results where you fail or win in the middle. So, it is just a function of market change. Such a movement is explained as a result of news impact or just team action on the specific side. Nonetheless, the fact is that you have an initial amount of EV (Expected Value), and you need to sacrifice some of the EV in exchange for some confidence in your result.

Keep in mind that such an approach also has pitfalls. Most bettors who are using this sports betting arbitrage method do not know the line is moving in their advantage; it is simply luck. Therefore, such an approach requires a keen realization of wagering markets, access to different sportsbooks, and an understanding of odds movements analysis.

How Can You Take Advantage of Arbitrage Betting?

As a bettor who periodically places arbitrage wagers, I can help you understand how to benefit from this approach. Initially, you need to realize that arbitrage stakes involve seeking bookmakers where game outcomes have such a difference in the odds that you will keep the winnings in any case. Additionally, you need to make your bets quickly so as not to overlook lucrative events. On top of that, I can share several essential tips to help you benefit from arbitrage betting opportunities:

• Utilize an arbitrage calculator. It is a helpful tool for identifying arbitrage possibilities. It can tell you whether an opportunity exists and what sum you need to bet to claim a profit.
• Keep yourself posted on odds movements. Since sportsbooks frequently adjust their proposals, you should monitor the odds movements to make the right arbitrage choice.
• Compare odds from various betting websites. Compare the odds proposed by chosen bookmakers. This procedure requires a lot of time, but it is vital to maximize your profits. I usually pick 5-7 reliable bookmakers and look for betting opportunities there.
• Don’t focus your attention on losses. If luck does not smile on you, try to place other bets, and do not place substantial sums to chase your losses. It may provoke financial ruin.

Keep in mind that you need to monitor various bookmakers and find a few arbitrage stakes manually. Nonetheless, you may try alternatives, like wagering software programs that track arbing. Such applications alert you when a lucrative opportunity is available. Therefore, it could be a great possibility for you, depending on how much you wish to commit to arbitrage sports wagering. For instance, you can pick such programs as RebelBetting or OddsJam. 

Nonetheless, the pitfall is that you should buy subscriptions to these programs. So, if you plan to place arbitrage bets often, you need to invest from $100 to $200 to get access to the necessary subscriptions to programs.

Why Do Bookmakers Dislike Arbitrage Bettors?

Arbitrage bettors cost bookmakers money. Users seek and benefit from lucrative opportunities at the expense of sportsbooks. Therefore, betting websites commonly ban or limit arbitrage fans. And yes, you might deem that it is unfair. Still, bookmakers believe that it is unfair to use sports arbitrage betting, counting on profit despite the results.

Keep in mind that sportsbooks frequently cooperate to prevent arbitrage betting. If bookmakers are in one partnering network, they can share information and security servers to decrease the issue. Therefore, I recommend reading the chosen bookmaker’s terms of use and looking at its partners. Thus, you may better understand the website policies and rules.

Pros vs. Cons of Arbitrage Betting

How to Mask Arbitrage Betting

As I noted, bookmakers ban your account if you make arbitrage stakes. It may happen if platform managers suspect you are using this strategy or have another account on the same platform. Although arbing is a precarious method, and it is not allowed by bookmakers, you may try it, if it suits you. I may recommend a few ways on how to disguise your arbitrage stakes.

Round Up Your Bet Sizes

As a rule, sports betting arbitrage stakes include a particular amount of funds to be placed on both sides. If you seek optimal profit, you will frequently have untraditional wager sizes that casual users would not often practice. For example, if you count that you need to bet exactly $42, it seems suspicious. Therefore, I recommend rounding up this amount and betting $45 or $50. Bookmakers will seek odd-numbered stakes as they imply arbitrage ones.

Therefore, although rounding up your wagers to more sensible numbers may result in small losses, I advise you to follow this tip. Thus, you can place arbitrage bets with a slim margin without being banned or limited.

Don’t Make Your Bets Too Big

In most cases, arbitrage betting includes no more than 5% ROI. Therefore, you need to place considerable stakes to profit more from this wagering method. Nonetheless, betting large sums can signal to bookmakers that you want to benefit from arbitrage stakes. Additionally, it indicates that you have a sharp wagering strategy. So, I advise you to use reasonable betting sizes to avoid your account being blocked.

Bet Parlays From Time to Time

As a rule, professional bettors do not use parlay stakes. In most cases, such wagers may decrease your ROI. Consequently, you may utilize parlays to create the illusion that you are a casual user. Traditionally, placing large parlays does not bring winnings. Of course, you will lose money and not hit profitably. Nonetheless, you may stay in the good graces of bookmakers and not worry that sportsbooks suspect you of arbitrating.

Best Sports to Use Arbitrage Betting Strategy

As someone who loves to bet and use different systems, I’ve tried arbitrage wagering on various sports. Still, I discovered that not all sports are suitable for this scenario. In my opinion, events or games with fewer markets are the finest solutions, as their outcomes are probably fair compared to other wagering types. I describe the best sports for arbitrage betting in the review below.

Football

When it comes to football games, I prefer markets such as goal-goal or goal-no-goal. Since these markets offer only two variants, the probability of winning or losing is 50/50. Unquestionably, you can use a few sportsbooks and place sports betting arbitrage stakes in either market to win. I am sure that such an approach guarantees take-home for such stakes.

Esports

Most eSports types have two-option markets for loss or win. For instance, if you are a Counter Strike-2 fan, you may place a wager on the OG team against Complexity Gaming in the first sportsbook. In the same vein, you can bet on Complexity Gaming on the second betting platform. Nonetheless, you should check a few sportsbooks and find the odds on this game where you will be in the profit, regardless of the match outcome.

If you use the same principle to either result on the one market, you will claim a great take-home sum from arbitrage betting. If the winning margin is significantly high, you may recoup your financial investment in the failed result. I would recommend considering your finest outcome when making the wagers for a better result. 

Basketball

Of course, I cannot ignore basketball markets in arbitrage betting. In this case, I would advise looking at Over/Under wagers that give users two variants that flawlessly fit the necessary criteria. In addition, you can try other arbing markets, giving the match multiple possibilities for more profits.

Tennis

I consider tennis a sought-after game for arbitrage wagering as well. Why? Here, you may opt for such markets as Game Winner and count on only two results. For instance, if you choose the game between Robin Montgomery and Hailey Baptiste, you know that only one tennis woman will win. So, you can find a few bookmakers with specific odds and walk away with excellent profits.

Conclusion

What is arbitrage betting? It is a strategy where you can wager on the opposite results of one sports event using different bookmakers. This approach requires looking for odds that guarantee a profit despite the match outcome. Nonetheless, I should highlight that there is no right answer that may say you need to try arbitrage stakes or not.

In most cases, if you find two or more bookmakers offering stakes on one sports event with the necessary difference in odds, you can try to place arbitrage bets. Use the formula I described above to calculate the total potential of arbitrage, and maybe luck will smile on you.

On the other hand, you should know that when I tried arbitrage betting, I spent a lot of time achieving a minimal ROI. Besides, I had a substantial bankroll, and you will need to have it as well. Moreover, keep in mind that arbitrage wagering is one of the straightforward ways to get limited or banned by betting platforms.

Therefore, whether to place arbitrage wagers depends on your spare time and financial investment plan. Just think about your goals in sports wagering markets and decide.