A novel approach to sports betting, arbitrage betting takes advantage of variations in odds offered by different bookmakers. It enables gamblers to wager on every possible scenario, guaranteeing a profit regardless of the outcome. This strategy generates opportunities for a guaranteed return by capitalizing on minor variations in bookmakers’ odds
The phrase “arbitrage sports betting” originates from the financial markets, where the practice of simultaneously purchasing and selling assets in different markets to profit from price discrepancies is known as arbitrage. Similar procedures apply to betting, where wagers are placed at odds that ensure a favorable outcome on every potential result.
How Arbitrage Betting Works
Perhaps you’ve heard about arbitrage betting before and are interested in learning more about its intricacies. Although it may sound complex, arbitrage can be explained in simpler terms. While there are some variations in the methods used to identify arbitrage opportunities in sports betting, they all center on the same concept.
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Arbitrage involves placing two wagers on the same athletic event and guaranteeing a profit regardless of the outcome. This is achieved by determining odds that allow this on both sides of the event. Typically, you will need to wager on one of the best online sportsbooks and another on a different one.
One reason this happens is that sportsbooks rarely permit internal arbitrage opportunities. This would ensure that the house loses money.
Furthermore, it would not be difficult to identify an arbitrage bettor utilizing these opportunities at a particular sportsbook. It is very likely that the sportsbook would swiftly limit or ban such a bettor.
You now have a basic understanding of what arbitrage betting, or simply “arbing,” entails. Let’s now examine how to locate arbitrage opportunities. We’ll go over the essentials of identifying value in an arbitrage wager.
Example of an Arbitrage Bet
Consider the following example of an arbitrage betting scenario: the Tigers have a starting moneyline of +110. Imagine placing a $100 wager on them to defeat the Guardians.
The public may bet a large amount of money on the Tigers, causing the line to shift. They now have a -110 advantage, with the Guardians as underdogs at +105.
This would give you the opportunity to wager $100 on the Guardians. In either case, you would be guaranteed to make either $5 or $10 in profit.
This is the most likely and realistic situation where arbitrage opportunities can be found. It takes patience and the willingness to stick with your initial wager if the opportunity does not present itself. Nevertheless, you are more likely to encounter these situations than arbitrage on lines that are posted simultaneously.
Pros & Cons of Arbitrage Betting
| ✅ Pros | ❌ Cons |
| It’s the holy grail of betting – a sure bet | Due to the small margins, you need to bet large sums to make good profits |
| Guaranteed returns and no risk | You need to spend time looking for the opportunities |
| The work involved is worth the returns | Bookmakers limit stakes, meaning you could be unable to place the stake you need |
Frequently Asked Questions
Yes, most jurisdictions allow arbitrage betting. However, bookmakers have the right to impose restrictions or even exclude customers they believe are placing arbitrage bets. They consider these bettors to be engaging in strategic gambling rather than traditional gambling. Although there isn’t a law against arbitrage betting, it’s important to realize that many bookmakers have their own policies on how they deal with bettors who engage in arbitrage.
Arbitrage betting is simply the use of different odds available in the market; it is neither fraud nor manipulation. Though occasionally discouraged, it’s still a valid tactic as long as you’re not violating any laws.
Conclusion
Arbitrage betting is an interesting, though challenging, method of placing sports bets. By closely comparing the odds offered by different bookmakers, bettors can avoid the usual risks of gambling and guarantee steady profits. This method does come with challenges: it requires quick thinking, accuracy, and the ability to navigate bookmaker restrictions. However, for those willing to put in the effort and consistently make money without relying on luck, sports betting arbitrage is one of the few viable options.
