Arbitrage Sports Betting Explained

What is Arbitrage Betting?

Arbitrage betting is a strategy where you place bets on every possible outcome of a game using different sportsbooks, so you lock in a profit no matter who wins. The profit comes from small differences in the odds that each sportsbook sets.

Instead of trying to guess the winner, you’re just taking advantage of the price gap between sportsbooks. If those odds create a situation where the total implied probability is under 100%, there’s room for a guaranteed return.

How Arbitrage Betting Works 

Arbitrage betting works because different sportsbooks set different odds for the same event. Those odds don’t always match, and when the gap is big enough to push the total implied probability below 100%, you can bet all outcomes and lock in a profit.

By placing bets on every possible outcome, you’re removing the guesswork. No matter how the game ends, one of your bets is going to win. The important part is how you split your stake. If the amounts are sized correctly, the winning bet pays out slightly more than you lose on the other side. This is where your guaranteed profit comes from. If you’re new to sports betting in general, our beginner’s introduction to sports betting explains the foundations behind odds, markets, and betting mechanics.

Simple Example of an Arbitrage Bet

If one sportsbook offers +120 on Team A and another offers +130 on Team B, their implied probabilities are approximately 45.5% and 43.5%.

45.5% + 43.5% = 89%

Since that total is under 100%, there’s a built-in profit margin — an arbitrage opportunity. The profit per bet is usually small, but many bettors like the reliability of this approach.

Here’s what that same arbitrage opportunity looks like with real money on each side:

• Bet $100 on Team A at +120 → You’d win $120 if Team A wins
• Bet $90 on Team B at +130 → You’d win $117 if Team B wins

And here’s the final outcome either way: 

• If Team A wins: Profit = $120 – $90 = $30
• If Team B wins: Profit = $117 – $100 = $17

This is the core idea of arbitrage betting: you’re not predicting who wins. You’re using the difference in odds to lock in a profit no matter the result.

How to Place an Arbitrage Bet Step-by-Step

Arbitrage betting works best when you follow a clear process. Below is a straightforward approach to how to arbitrage bet from the moment you spot an opportunity to the final settlement check.

Swipe for more

1

Spot the Odds Discrepancy

The first step is recognizing when two (or more) sportsbooks disagree on the likelihood of an outcome. Arbitrage exists when the combined implied probability of all outcomes is under 100%. Here’s how this looks in different types of markets:

• 2-way markets: look for two prices at different sportsbooks where the implied probabilities add up to less than 100%.
• 3-way markets: compare Home / Draw / Away prices across books and ensure the combined implied probability is under 100%.

Using an arbitrage betting finder or comparison tool can speed this process up for you. A reasonable edge target is often 0.5%–2% after factoring fees and currency conversions. Smaller edges can work but increase the risk of odds shifting mid-bet.

Quick rule: Convert odds → implied probability → add totals. If the total is below 100%, that’s your arbitrage gap.

2

Calculate the Exact Stakes

Once you’ve found a pricing gap, the next step is to ensure your bet sizes are balanced. The whole point of arbitrage betting is that your profit is guaranteed regardless of the result, and this only works if your stakes are calculated correctly.

Using an arbitrage betting calculator is the fastest and cleanest way to do this. You simply enter the following information:

• The odds from each sportsbook
• Your desired total risk amount

The calculator will instantly tell you exactly how much to stake on each side and your expected profit percentage. If you prefer manual math or need to double-check, remember to factor in exchange commissions, currency conversion differences and potential withdrawal fees. Even small fees can shrink your margin, so get in the habit of including them early.

3

Place Bets Across Multiple Sportsbooks

Once you know your stakes, it’s time to place the wagers. This is where execution matters. Arbitrage windows can close fast when odds update or limits tighten. 

Here are a few tips to ensure you’re prepared and ready to go at a moment’s notice:

• Make sure your sportsbook accounts are funded, logged in, and ready before opening the calculator.
• Place the bet at the best or most volatile odds first (the side that’s more likely to move).
• Immediately place the hedge bet(s) at the other sportsbook(s).

For appearance and speed, many bettors round stakes to simple numbers (e.g., $97.88 → $98) to avoid manual input delays and reduce the chance of triggering automated account reviews.

If the odds change mid-process, don’t panic. Recalculate quickly and decide whether to continue or cancel. Never force the original stake amounts if the profit margin disappears.

4

Verify Wagers and Record the Results

Once your bets are in, the final step is protecting your profit by verifying that everything settled correctly. That means double-checking acceptance, settlement rules, and final payouts.

Here are the key things to review after placing an arb:

• Check that each bet is marked as accepted and that the odds match what you intended.
• Look out for voided bets or rule differences (common in tennis retirements and prop bets).
• If any of your wagers have one side voided and the other doesn’t, you may need to manually place another hedge.

After the event concludes, review your payouts and confirm the profit aligns with your calculator results.

If you want to track performance over time and identify which books are most reliable, keep a simple log with the following:

• Event
• Sportsbook used
• Odds
• Stake split
• Return percentage

Consistent tracking is what turns arbitrage from a strategy into an efficient, repeatable system.

Is Arbitrage Betting Legal?

There’s nothing illegal about placing two bets at two different sportsbooks, as you’re simply taking advantage of publicly available odds. In most regions, the act itself is not against the law.

However, sportsbooks generally don’t like it because you’re removing their risk. Many include terms that allow them to limit, restrict, or close accounts if they believe you’re consistently arbing. So, while the strategy is typically legal, the real risk is having your betting limits reduced.

Legal Status by Region

In the US, arbitrage betting is generally legal as long as you’re placing wagers with licensed sportsbooks. In places like Canada, the UK, Ireland, Australia, and most of the EU, regulated sports betting markets operate openly and arbitrage betting is generally allowed. Regardless of location, the most common consequence is account restrictions, not legal penalties.

Sportsbook Policies and Account Limitations

While it’s generally legal to hunt for arbitrage betting opportunities, sportsbooks don’t always welcome this strategy. This is why many brands have systems designed to detect arbing behavior.

If a sportsbook flags your account, they likely won’t ban you outright. Instead, they may:

• Lower your maximum bet amounts
• Restrict which markets or odds you can wager on
• Delay withdrawals for additional reviews
• Suspend your account temporarily

These actions are usually covered in the sportsbook’s Terms & Conditions, under language like “management reserves the right to limit or refuse bets.”

Can You Get Banned for Arbitrage Betting? 

There aren’t any criminal or civil penalties for placing opposite bets at different sportsbooks, but it is possible to get banned from a sportsbook if they suspect you of arb betting. In most cases, sportsbooks will lower your betting limits or restrict access to certain markets long before they close your account. 

So, while arbitrage betting is generally legal, the trade-off is that it can reduce the lifespan of your sportsbook accounts if done too aggressively or too obviously.

Key Terms

Before you start placing arbitrage bets, it helps to understand a few common terms you’ll see in guides, calculators, or betting tools. These all refer to parts of the same strategy, just from different angles.

Why Do Arbs Exist?

Simply put, arbitrage opportunities exist because sportsbooks operate independently. Each sportsbook has its own data models, risk tolerance, betting limits, and customer base. As a result, they don’t all calculate odds in the same way.

These discrepancies create moments where two sportsbooks disagree on the probability of an outcome, and that disagreement opens the door for a potential arb and a guaranteed return on your investment. If you want to see how odds work in a completely different system—where bettors wager into shared pools instead of fixed prices—read our guide to pari-mutuel betting.

Why Sportsbooks Offer Different Odds

There are a few key reasons why sportsbooks will offer different odds on the same event:

• Data Models: Every sportsbook uses its own algorithms to set opening lines. Two sportsbooks can look at the same matchup and still arrive at slightly different expected outcomes.

• Betting Volume: If one sportsbook receives heavy betting on one team, it may shift the odds to limit exposure. Another sportsbook might not see the same action and leave its odds unchanged, creating a temporary gap.

• Timing of Line Updates: Some sportsbooks update odds instantly based on live feeds and trading software. Others update manually and may lag behind, especially during high-traffic events.

• Regional Bias: A sportsbook with a strong fan base in a certain area may shade lines to reflect local betting behavior. For example, sportsbooks in New York may price the Knicks differently than books in Nevada.

• Promotional Odds: Sometimes a sportsbook intentionally inflates odds to attract new users or encourage action on a specific outcome. These boosts can create perfect arbitrage windows.

Because of all these factors, odds don’t always align across the market. And when they drift far enough apart, there’s an opportunity to bet all sides and lock in a guaranteed return.

How to Identify Arbs

Finding arbitrage opportunities comes down to spotting when two sportsbooks list different prices for the same outcome. You can do this manually by comparing odds yourself, or you can use software that scans thousands of markets automatically and flags profitable gaps in real time.

Arbitrage Betting: Manual vs. Automated

There are two main ways to look for arbitrage opportunities: manually or with automated tools.

Using Arb Betting Tools and Odds Comparison Software

Arb betting tools and odds comparison software doesn’t just save time — it helps you act fast enough to lock in the profit. Here’s what makes these tools so valuable:

Disadvantages of Arbitrage Betting

Arbitrage betting can be profitable, but it’s not effortless. While the math guarantees a return on paper, the real challenge is executing consistently in fast-moving markets. Profits per bet are often small, so success depends on volume, speed, and organization.

Some key drawbacks to be aware of:

• Small Margins: Most arbs return between 0.5%–3%, so you need frequent bets (and enough bankroll) to see meaningful gains.
• Time-Intensive: Finding, verifying, and executing opportunities requires constant monitoring.
• Multiple Accounts Required: You’ll need access to (and funds spread across) several sportsbooks to find consistent arb opportunities.
• Limited Decision-Making Time: Odds can shift quickly, sometimes before you finish placing both sides.
• Organizational Discipline: A small mistake in stake sizing or bet placement can wipe out the profit from multiple arbs.

Arbitrage works best for bettors who are comfortable managing multiple accounts, reacting quickly to changing odds, and keeping clear records. . If you’re interested in another low-risk strategy built around exploiting price differences, check out our guide to matched betting.

Using the Arbitrage Strategy in Sports Betting

Arbitrage betting isn’t about guessing who wins, it’s about spotting odds differences and locking in profit no matter the outcome. With a little math and the right tools, you can turn small price gaps between sportsbooks into steady returns.

It takes speed, focus, and a few active accounts, but once you get the hang of it, arbing can be a reliable way to stay ahead of the game without leaving your winnings to chance.

Kevin

Roberts

Content Editor

Articles

462

Kevin Roberts, previously published under the pseudonym Noah Davis, is one of the more diverse writers at GamblingSites.com. Like many of his colleagues, he’s a huge fan of both football and basketball. But he also writes about box office records, TV show prop bets, DFS, and all kinds of other subjects. When it comes to the NFL, Kevin’s favorite team is the Green Bay Packers. He enjoys cheering them on with his wife and daughter.

See All Kevin’s Articles