What is Arbitrage Betting?

With arbitrage betting, punters can secure guaranteed profits by exploiting odds discrepancies across different bookmakers or betting exchanges, and in this guide, we’ll explain how it works.

Often referred to as “arbing”, the approach involves placing separate bets on all possible outcomes of a game or event in such a way that you win no matter what.

In this explainer, we’ll discuss the mechanics of the strategy and how to use it in the best way as well as some of the challenges arb betting presents.

How Does Arbitrage Betting Work?

In its simplest terms, it involves leveraging different bookmakers’ odds to cover all outcomes of a game, fixture or event to guarantee a profit.

All sports betting sites set odds for a sports event based on their own assessments, incorporating a margin to ensure profitability.

However, sometimes these margins don’t align perfectly across different platforms and this is what creates sports arbitrage betting opportunities.

When those windows open and odds are misaligned, bettors can back bet (betting for an outcome) and lay bet (betting against it) both sides of a line to guarantee a payout not matter the result.

In the right circumstances, bettors can cover every scenario to ensure a small but consistent profit. Those profits per bet are typically modest (often 2-5% of total stake), though they do add up over time if places in high volumes.

You could look the arbitrage betting meaning as a form of odds exploitation that’s of particular appeal to punters who like low-risk wagering strategies.

Do arbitrage wagers work? Yes, but it isn’t a “quick and easy” route to profit either. There is a learning curve to conquer, while multiple accounts with bookies and betting sites need to be maintained to make it work.

Next, we’ll take a look at an example of sports betting arbitrage might work in real life.

Arbitrage Betting Example

In this section, we’ll walk through a practical example using a football fixture from England’s Premier League, Liverpool vs Manchester United.

Say a particular bookmaker has priced up the game as follows:

• Liverpool (2.15)
• Draw (3.20)
• Man Utd (3.80)

However, a key piece of team news has emerged ruling key Liverpool defender Virgil van Dijk out of the game through injury. The Reds always seem to struggle in his absence so naturally, the odds of the match shift.

The bookmaker in the above example have been slow to adjust their prices however, and meanwhile, the odds on an exchange (like Betfair or Smarkets) have. Liverpool’s price has increased while United’s has shortened.

This what creates arbitrage opportunities. Here, you could back Man Utd with the bookmaker above at 3.80, while simultaneously laying them at 2.88 with an exchange (see screenshot above).

The trick is to work out the correct amounts to use on your back and lay bets to ensure that you finish with a profit.

For example, you place a back bet of £100 on Man Utd to win with the bookmaker, with a potential profit of £280 there. At the same time, you would lay (bet against) United on the exchange for £134.28, which would register as a loss valued at £252.45 if the Red Devils won at Anfield.

Here’s how that set-up would unfold:

If Man Utd win, you make a profit of £27.55 (the £280 bookmaker payout minus £252.45 Betfair loss). If they lose/draw, you would stand to make £27.57 (the £127.57 Betfair profit (commission of 5% deducted) minus £100 bookmaker stake.

As you can see, by exploiting the markets, you would have guaranteed a profit no matter the outcome of the game.

Effective Markets for Arbitrage Sports Betting

Certain markets lend themselves better to arbitrage wagering than others. Generally, sports markets with the strongest presence have more competitive pricing and more robust liquidity on a betting exchange like Betfair, Smarkets and Matchbook, making them better for arbs. Here some of the most effective markets to look out for.

Tennis Match Winner (2-Way Markets) – Tennis is routinely a go-to sport for anyone engaging in arbitrage betting in the UK due to its binary outcomes (no draws). One bookmaker might offer inflated back odds on a favourite while another undervalues the underdog, creating easy bookmaker-to-exchange arbs.

Tennis Set Betting or Game Totals – Beyond match winners, alternative tennis markets like correct score in sets (e.g. 2-0, 2-1) or total games over/under can provide windows for cross-market arbitrage.

Football Over/Under Goals (Totals) – This one provides excellent two-outcome setups. UK bookies often differ on goal expectancy, especially around big matches or when team news leads to odds shifting. These markets are relatively straightforward for arbs too, with high liquidity on offer.

Horse Racing Win/Place or Each-Way Markets – Racing remains a staple for UK arbitrage, especially during big meetings like Cheltenham Festival, Grand National or Royal Ascot. Focus is on the win markets in smaller fields or on each-way bets, where bookmakers sometimes disagree on place terms (e.g. 1/4 odds 1-2-3 vs. 1-4).

Markets to Avoid with Arb Betting

Of course, not all markets are suitable for arb wagering and we’ll take a look at some of those now. First, it’s a good idea to avoid some of the more overly complex options on betting sites, like accumulators.

The multiple variables at play there make it difficult to calculate and allocate stakes accurately, so things can get messy very quickly.

Longer-term outright bets for tournaments, leagues or other events are also unsuitable due to their volatility of prices.

Player-specific bets, like the ones you might stack together in bet builders, aren’t ideal either due to the lack of overall liquidity, while live betting moves far too quickly to make it work.

Indeed, that liquidity factor is a big one, so to ensure there is enough action for you to play with, it’s usually a good idea to stick to mainstream sports over more niche ones. There is far more room to manoeuvre in the sports where a lot of money is moving all the time.

Pros & Cons of Arbitrage Betting Explained

Arbitrage bets have come equipped with their own upsides and drawbacks, all of which are important to consider before giving it a go yourself. Below, we’ve laid out the strategy’s pros and cons to help you work out whether it’s a system for you.

Arbitrage Betting Tips

If you’re ready to try arbitrage yourself, we’ve got some expert advice from our betting experts at BetIdeas which you can use to strengthen your strategy.

Use an Arb Betting Calculator

It’s much easier to use a calculator for precises stake allocation. With these free tools, you can input the odds, compute bet sizes, implied probability and potential profits with just a couple of clicks.  An arbitrage calculator can also factor in commissions on betting exchanges for more accurate ROI.

Leverage Betting Exchange

Using exchanges is simply essential for arbing. They allow you to perform the lay bets which enable you to bet against event outcomes and create the sports arbitraging opportunities in markets with more than two possibilities. Play around with them to learn more about how they work.

Diversify Across Arbitrage Betting Sites

It’s also a good idea to sign up with multiple arbitrage sites to give you wider access to more varied odds. Then, you can compare mismatched lines from traditional bookies and exchanges to spot discrepancies.

Arbitrage Betting Software

If you want to step things up, you can invest in software to automate the hunt. These arbitrage betting finder tools, often powered by machine learning, scan thousands of markets for odds exploitation automatically.

Manage Risks with Mug Bets

Bookies are always lookin to weed out the “arbers”. To avoid detection, place “mug bets”, which are regular wagers like football accumulators, so you can blend in as a more casual punter. This will keep your account active and with lessen the chances of triggering bans or limitations.

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