What is Arbitrage Betting? How Does Arbitrage Betting Work?
James Wilson
Sports Betting Analyst
What is Arbitrage Betting?
Arbitrage betting, also known as arbing, is when a bettor places a wager on both sides of an outcome in order to profit. There are some risks which will be detailed later, but arbitrage betting results in a mathematical profit.
It is a form of hedging, and it requires a sports bettor to place their bets roughly at the same exact time on opposite sides of the same bet.
Arbitrage Betting Examples
There are three different types of arbitrage bets, with the first and second options being the most common.
1. Different lines on the same bet
Two different sportsbooks are offering different prices or lines on a bet at the same time, so you bet both sides for a profit.
Buffalo Bills vs New York Jets
| BET | BOOK | ODDS | STAKE | PAYOUT |
|---|---|---|---|---|
| Over 33.5 |  | -250 | $100.00 | $140.00 |
| Under 33.5 |  | +280 | $36.84 | $140.00 |
Total Stake
$136.84
Total Payout
$140.00
Profit
$3.16 (2.26%)2.26%
Using this example, you would risk $136.84 between both bets, and you would have a payout of $140, with a profit of 2.26%, or $3.16. Obviously, the more you risk the more profit you will make.
It's advisable to be careful with decimal places in your stakes, as some sportsbooks may round them, potentially affecting your arbitrage.
2. Different prices on moneyline bets
Two different sportsbooks are offering different prices on a moneyline at the same time, so you bet both sides to profit.
Buffalo Bills vs New York Jets
| BET | BOOK | ODDS | STAKE | PAYOUT |
|---|---|---|---|---|
| Bills ML | | -300 | $322.50 | $430.00 |
| Jets ML |  | +330 | $100.00 | $430.00 |
Total Stake
$422.50
Total Payout
$430.00
Profit
$7.50 (1.74%)1.74%
This is similar to the first example, but instead of betting on a total or prop you would bet on the moneyline of each team. With this approach, you would invest a total of $422.50 and receive a guaranteed return of $430.00, resulting in a profit of $7.50 (1.74%).
While the percentage yield is lower than the previous example, the total profit is higher due to the larger stake.
3. Line movement arbitrage
A line moves after you place a bet, so you can now bet the other side for profit.
Line Movement Example
Initial Bet Placed:
| BET | BOOK | ODDS | STAKE |
|---|---|---|---|
| Bills ML |  | -300 | $100.00 |
| (Jets at time) | +250 | (Not bet) |
After Line Movement:
| BET | BOOK | ODDS | STAKE | PAYOUT |
|---|---|---|---|---|
| Bills ML (Placed) | | -300 | $100.00 | $133.33 |
| Jets ML (New) |  | +350 | $30.00 | $135.00 |
Total Stake
$130.00
Min Payout
$133.33
Min Profit
$3.33 2.56%
This is the least common approach, as it relies on line movement rather than identified arbitrage opportunities. In this example, after you placed your original Bills bet, the lines shifted due to money coming in, creating an opportunity to bet the Jets at better odds and secure a profit regardless of the outcome.
While not a strategy to rely on, being aware of line movements can occasionally present unexpected arbitrage opportunities after you've already placed a bet.
Arbitrage Betting Strategies
Overall, arbing is a good way to optimize winnings betting, but it's generally not advisable to only arb bet as a sports better. For starters, it's hard to win any significant amount of money if you are solely betting arbitrage opportunities. The profit margins are small (generally no greater 2.5%), and you would need to invest a significant amount of money in order to make any meaningful profits.
But, with that said, there are still important strategies to help you effectively and efficiently arb.
Avoid suspicious bet sizes
The most important strategy is to avoid betting an uncharacteristically large amount of money when arbing. Not surprisingly, sportsbooks don't appreciate players that arb.
Use multiple sportsbooks
You should be using as many sportsbooks as possible, and keep track of which ones you use the most often.
Leverage odds boosts and free bets
Another beneficial way to successfully arb is doing so when you get an odds boost, free bet, or site credits. Odds boosts specifically are a nice way to get a high percent of profit without having to have a large amount at stake.
For example, for the college football title game, a sportsbook might have an odds boost on a team's moneyline from -150 to +100, with a max bet of $25. Conversely, the other team's moneyline might be +133 on another book.
Using an Arbitrage Calculator, this would give you a profit of around 7.07%, or $3.46. This may not seem like much, but there are always going to be odds boosts such as this to take advantage of.
Use free bets or site credit
Free bets or site credit is another way to use arbing to your advantage. Whether you are taking advantage of a sign-up bonus or you just received a free bet for another reason, it is common for people to hedge these bets by arbing on another book.
The logic is the same as a regular arb – you would find a situation where you can bet both sides where there is an odds discrepancy, such as that Bills/Jets total from earlier, but the main difference being you could possibly get the best of both worlds. Let's say you used your free bet on the under and the over hits. You would get your winnings from the over side of the bet, but you would have also not lost any money on the under bet losing.