Arbitrage Betting

Arbitrage betting, often called “arbing,” is a strategy where a bettor places wagers on every possible outcome of an event using different bookmakers, exploiting differences in odds to lock in a guaranteed profit. The approach works because bookmakers independently set their own lines, and temporary discrepancies can create situations where the combined implied probabilities across books total less than 100%. When that happens, a bettor can distribute stakes across all outcomes in precise proportions and secure a positive return no matter which side wins.

The strategy relies on speed and precision. Odds discrepancies tend to be small and short-lived, meaning arbitrage bettors must act quickly before the lines adjust. The profit margins on individual arbs are typically modest, often ranging from 1% to 5% of the total amount wagered. However, because the return is essentially risk-free, many bettors view arbitrage as a reliable way to build profits steadily over time.

Example

A tennis match lists Player A at +150 (decimal 2.50) at Bookmaker X and Player B at +110 (decimal 2.10) at Bookmaker Y. By wagering $100 on Player A and $119.05 on Player B, the total outlay is $219.05. If Player A wins, you collect $250 (a profit of $30.95). If Player B wins, you collect $250 (again, a profit of $30.95). Regardless of the outcome, you earn approximately $30.95, which represents about a 14.1% return on your total stake. In practice, margins this large are rare, but the principle holds for any qualifying odds discrepancy.

Key Points

• Risk-free in theory: When executed correctly, arbitrage guarantees a profit because all outcomes are covered at favorable odds.
• Small margins: Most arbitrage opportunities yield between 1% and 5% profit, so meaningful returns require significant capital or high volume.
• Account limitations: Bookmakers actively monitor for arbitrage activity and may limit or close accounts that consistently exploit odds discrepancies.
• Requires multiple accounts: To find and place arbs, bettors need active accounts at many different sportsbooks, each with sufficient funds available.
• Timing is critical: Odds can shift within seconds. Delayed execution on one leg of an arb can turn a guaranteed profit into an exposed position.