What Is Arbitrage in Sports Betting?
Ever wondered how some bettors win more than others? Have you heard of arbitrage in sports betting, but never fully understood it?
Well, I’m going to break down this concept and show you how winning bettors use differences in odds to lock in profits. Understanding arbitrage betting and applying it in your usual wagering approach allows you to profit irrespective of the outcome.
In the sections below, I’ll start with the basics of arbitrage sport betting and show you how it can completely transform your online sports gambling sessions.
🔑 Key Takeaways
- Use arbitrage betting to win, no matter what happens.
- Try this low-risk bet type for a safe way to earn money and build a stronger betting game plan.
Understanding Arbitrage Betting
Arbitrage in sports betting is an approach designed to help a bettor make money by taking advantage of different odds offered across different sportsbooks and platforms.
To engage in arbitrage betting, you need to find different odds on the same event.
Example: One sportsbook might offer better odds for one team, while another provides better odds for the opposing team. The key to arbitrage betting is to place bets on all outcomes, ensuring a win no matter the result.
Next, you’ll use a sports betting arbitrage formula to figure out how much to wager on each outcome, and if you do it correctly, the total amount you win will be more than what you spent on all your wagers.
According to sports betting experts and analysts:
To succeed with arbitrage betting, you need to calculate carefully and also act quickly, as these chances don’t stick around for long.
Calculating Arbitrage Opportunities
Arbitrage betting needs careful calculations and quick action. To calculate potential arbitrage opportunities, follow these steps:
- Find the Odds: Look for different odds on the same event from various sportsbooks.
Example: If one site offers Team A at +200 and another offers Team B at +150, note these odds. - Convert Odds to Probability: Convert these odds to implied probabilities.
Example: Odds of +200 give an implied probability of 33.33% (100 / (100 + 200), and odds of +150 give an implied probability of 40% (100 / (100 + 150). - Calculate the Total Probability: Add the implied probabilities together.
In this case, 33.33% + 40% = 73.33%. - Determine the Arbitrage Percentage: Subtract the total probability from 100%.
Here, 100% – 73.33% = 26.67%. This is your potential profit margin. - Use an Arbitrage Calculator: To simplify this process, use tools like the sports betting arbitrage calculator. It helps quickly calculate potential profits and determine the best bets to place.
By using the right betting tools, you can easily identify profitable arbitrage betting opportunities.
Sports Betting Arbitrage Strategies
Arbitrage betting is an effective game plan that will help you boost your sports bet winnings. Let’s discover some expert tips for making the most out of this method:
- Compare Odds Across Sportsbooks: Regularly check odds from multiple sportsbooks for the same event.
- Act Quickly: Arbitrage opportunities can vanish as fast as the odds change. So, be ready to place your bets as soon as you spot an opportunity.
Example:
- BetMGM offers +200 odds for the New England Patriots to win an NFL game.
- FanDuel offers +150 odds for the Buffalo Bills.
Using an arbitrage calculator will show you the exact amounts to bet on each team to guarantee a win. Regardless of which team wins.
Tools and Software for Arbitrage Betting
Arbitrage software is invaluable for finding and placing profitable wagers by quickly identifying opportunities through odds comparison across sportsbooks.
Here are some popular arbitrage tools and software:
- Arbitrage software like BetBurger, BetOnValue, and ArbMate scan multiple platforms to find odds variations and provide real-time alerts, saving you time and effort.
- Arbitrage calculators also help with quick calculations to identify the best bets.
These tools allow you to act quickly and reduce the risk of errors, improving your chances of securing profits. Many bettors report improved strategies and profitability using arbitrage software, with expert reviews and forums highlighting their positive impact.
Is Sports Betting Arbitrage Legal?
You’ll be pleased to know that arbitrage betting is 100% legal in all countries and states where sports betting is legal. However, sportsbooks may have a different stance.
In most cases, many sportsbooks prohibit or restrict such practices and state this clearly under their terms and conditions. If a sportsbook suspects that you’re using arbitrage betting purely to exploit the house edge, it may result in certain consequences such as limiting your betting account, canceling your bets, or even shutting down your account with them.
Therefore, it is important to practice arbitrage betting wisely and within limits to avoid these issues.
According to legal experts:
While arbitrage betting is lawful, you should proceed with caution. In other words, review the rules of each sportsbook you sign up for and make yourself aware of the consequences of using arbitrage betting.
Practical Examples of Arbitrage Betting
Below, I’ll show you some examples of how arbitrage betting works in real life:
Example 1 — Soccer Betting: Suppose there’s a match between Manchester City and Liverpool.
- BetMGM offers odds of +150 for Manchester City to win.
- DraftKings offers odds of +200 for Liverpool to win.
→ If you bet $100 on Manchester City at +150 and $75 on Liverpool at +200, you’ll ensure a profit regardless of which team wins.
Example 2 — Tennis Betting: Consider a match between Rafael Nadal and Novak Djokovic.
- FanDuel offers odds of -110 for Nadal to win.
- BetRivers offers odds of +120 for Djokovic to win.
→ You can place bets on both players with the correct amounts to guarantee a profit no matter who wins.
Experts say that quick action and accurate calculations are key to successful arbitrage betting. For instance, during the 2023 US Open, some professional bettors used sports betting arbitrage strategies to profit from varying odds offered by different sportsbooks.
Pros and Cons of Arbitrage Betting
Arbitrage betting has its advantages and disadvantages:
| Pros | Cons |
|---|---|
| Guaranteed profits regardless of outcome | Sportsbooks may detect and restrict or ban accounts |
| Exploits different odds across sportsbooks | Odds can change quickly, challenging timely betting |
| Low-risk method praised by professional bettors | Requires careful monitoring and quick bet placement |
| Increases winnings and enhances betting portfolio | Potential for financial losses if not cautious |
| Opportunity for consistent profits with proper execution | Even seasoned bettors face account restrictions |
So, Will You Make an Arbitrage Bet Tonight?
We’ve now given you the full rundown on arbitrage betting and how it guarantees profits by taking advantage of various odds offered by multiple sportsbooks. Use this information the next time you’re betting on sports online to help you win consistently.
If you’re looking for more sports betting tips to improve your game plan and boost your profits, take a look at our betting 101 section.