Table of Contents
- Quick Summary
- What Is Arbitrage Betting?
- Why Arbitrage Betting Exists
- How Arbitrage Works
- Step 1: Identify Odds Gaps
- Step 2: Check for Arbitrage Margin
- Step 3: Calculate Stakes
- Step 4: Place and Track Bets
- Tips for Accurate Arbitrage Execution
- Common Use Cases
- Visual Reference
- Frequently Asked Questions
- Learn More
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Term
Arbitrage Betting
Quick Summary
Arbitrage betting, also called “arbing,” is the practice of placing bets on all possible outcomes of a sporting event using different sportsbooks offering divergent odds. If executed correctly, it can result in a guaranteed profit, regardless of the event outcome. This guide explains how arbitrage betting works, when it’s viable, and how to calculate stakes correctly.
What Is Arbitrage Betting?
Arbitrage betting involves covering every potential result of a match using different sportsbooks' odds to lock in a profit.
Core principles:
- All outcomes are covered (e.g., Team A, Team B, or a draw)
- Different sportsbooks provide the odds variance needed
- Precise calculations are used to split the stake and guarantee a return
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Why Arbitrage Betting Exists
Arbitrage opportunities arise when sportsbooks disagree on odds for the same outcome. Causes include:
- Risk management differences
- Regional price skews
- Delayed adjustments to news or injuries
How Arbitrage Works
Step 1: Identify Odds Gaps
Example: Tennis match
- Pinnacle: Player A at -345 (decimal: 1.29)
- DraftKings: Player B at +370 (decimal: 4.70)
Step 2: Check for Arbitrage Margin
Convert odds into implied probabilities and sum them:
- Player A: 1 / 1.29 = 77.5%
- Player B: 1 / 4.70 = 21.3%
- Total = 98.8%
Because the total is under 100%, this is a valid arbitrage opportunity with a 1.2% edge.
Step 3: Calculate Stakes
Formula:
- Stake A = Total Stake × (Probability B / (Probability A + B))
- Stake B = Total Stake × (Probability A / (Probability A + B))
Example (page 4 graphic explains this):
For $500 total stake:
- Stake A: $107.68
- Stake B: $392.32
Returns:
- Player A win = $506.09
- Player B win = $506.10
Both outcomes return a small profit (~$6.10).
Step 4: Place and Track Bets
Bets must be placed immediately to avoid price movement. Tracking helps verify execution accuracy and long-term results.
Tips for Accurate Arbitrage Execution
- Act fast: Odds can shift within seconds
- Double-check calculations: Stakes must match profit ratio, or the arb fails
- Use reputable books: Some sites delay or cancel bets
- Avoid correlated markets: Ensure outcomes are fully independent
- Confirm the arbitrage mathematically: Don’t bet unless the total probability is under 100%
Common Use Cases
Arbitrage works across:
- Soccer
- Tennis
- MMA
- Basketball
- Any market with clear two- or three-way outcome structure
Visual Reference
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Frequently Asked Questions
Is arbitrage betting legal?
Yes. You’re using publicly available odds on licensed sportsbooks.
How much can you earn?
Most arbs offer 1–5% returns per bet. With consistent volume, the gains can accumulate meaningfully.
What’s the risk?
The core risk lies in execution—delayed odds, miscalculated stakes, or canceled bets. Math-based risk is close to zero if executed correctly.
Can sportsbooks limit you for arbing?
Some may limit or restrict your account if they detect consistent arbitrage patterns.
Does it work on props and totals?
Yes, provided the odds divergence exists and all possible outcomes are covered.
Learn More
For more foundational betting concepts and mathematical tools for market efficiency, explore other articles in The Advantage archive.