Turning odds into profits: Arbitrage sports betting guide 

Betting in sports is always a thrill, but the risks are just as big. Odds can change in a blink, which can leave punters with wins or losses that they can’t always predict. Many now use strategies that cut down risks and turn the odds in their favour. One of the most popular is arbitrage betting, also called ‘sure betting’. This approach works by using the differences in odds set by different sportsbooks.

KEY TAKEAWAYS

• Arbitrage betting works by taking advantage of the odds gaps you can find between various bookmakers.
• While frowned upon by most bookmakers, sports betting arbitrage is legal to use. Still, make sure you review the site terms to avoid issues.
• You can only find good arbitrage betting chances when bookmakers offer different odds on the same event. This gives you a guaranteed chance of winning a profit.

Unlike most strategies, arbitrage betting isn’t rooted in chance or gut feeling. It’s based on careful maths and spotting opportunities in the market. If you want to know a smarter way to bet, this arbitrage sports betting guide can help you understand the ins and outs of this tactic: how it works, how to use it, as well as the dos and don’ts that come with it.

What is arbitrage?

Arbitrage, in general, is a concept widely used in finance and markets. At the simplest level, it means making money from price differences. Think of it like buying a phone for US$300 in one shop, then selling it for US$400 in another. You just pocketed the US$100 difference; this is arbitrage in daily life. In finance, traders may buy shares in one market and then sell them at a higher price.

Notably, arbitrage isn’t limited to trading alone; it also shows up in gambling. In casino games, it can mean betting on both sides to make sure you secure a profit. For instance, in any baccarat variant, you can bet on both the banker and the player if the odds differ and the game allows. The main goal is always the same: secure a profit no matter what the result is.

What is arbitrage in sports betting?

In sports, arbitrage works in much the same way. Sports betting arbitrage is a betting strategy where you bet on all possible results of an event using odds across various sportsbooks. 

This tactic goes by many names. Most betting sites call this ‘arbing’, a shortened version of the name, and those who use the tactic are called ‘arbers’. Some also refer to it as a ‘sure bet’ since arbitrage bets offer a ‘sure’ return.

The idea is simple: compare odds, cover all outcomes, and guarantee a profit. It’s less about chance and more about careful market checks, calculations, and quick decisions. 

Say you saw one sportsbook that gave Team A higher odds, while another offers better odds for Team B. By splitting your bets across both, you can secure a small but certain gain.

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How does arbitrage betting work?

The primary goal of arbitrage betting is to capitalise on market inefficiencies. More often than not, sportsbooks offer almost similar odds, but they don’t always match. Since each bookmaker has its own methods and models to price events, there are times when big differences show up. These loopholes, even if small, can create a chance to cover all outcomes and help you gain profit.

For example, you’re looking to bet on a tennis match. Bookmaker 1 sets odds of 2.10 for Player 1 to win. Meanwhile, Bookmaker B gives 2.13 odds for Player 2. If you place bets on both sides with the right stake, you can guarantee a profit no matter who wins. This works because you’ve balanced your bets across the prices set by different sites, and it only works if you know how to precisely calculate your bets.

How to spot arbitrage betting opportunities

To make arbitrage betting work, you need more than just spotting differences; you must also calculate your bets correctly. The sports betting arbitrage formula is based on implied probability, which works by dividing 1 by the decimal odds. 

When the total of all the expected chances is less than 1, then you’ve found a sure bet. Keep in mind that these odds don’t last long, so once you’re sure of a profitable bet, go for it.

Here’s how you can calculate it step by step:

1. Find the best odds
   Compare odds across sportsbooks until you see ones that vary enough to create an edge. This is the most basic way to find arbitrage betting opportunities.
   Say you’re betting again on a football match. You’ve found two sportsbooks with solid odds for the bet options: Player A with 2.5 odds in Bookmaker 1 and Player B with 1.95 odds in Bookmaker 2.
2. Use the formula
   To check if these odds are a great find, you can use the formula below:
   (1/odds of outcome 1) + (1/odds of outcome 2) < 1
   Using the example above, we get: (1/2.50) + (1/1.95) = 0.4 + 0.513 = 0.913. Since the total, 0.913, is less than 1, this is a great arbitrage bet opportunity.
   1. Split your stake for each bet
      Once an opportunity is confirmed, you must now figure out the bet amount you’ll place for each odds. Decide first on how much you want to spend on both.
      Then, use this formula:
      (Total bet * (1/odds of outcome))/Total arbitrage value
      Say you decided to place a total of US$100 for both. Since you already have your arbitrage value (i.e., 0.913), you can proceed to the calculation:
      Your bet for Player A:
      [100 * (1/2.50)]/0.913 = 43.81
      Your bet for Player B:
      [100 * (1/1.95)]/0.913 = 56.19
      Based on your total stake and maths, you need to bet US$43.81 for Player A, then US$56.19 for Player B. While it might be confusing, learning this process ensures that your bets are balanced across odds.
3. Check your profit
   If you wish to see how much you can gain from betting on these odds, simply multiply your player bet by its odds. The returns should show guaranteed profit, whoever wins.

On calculating your arbitrage bets

Finding chances to profit from arbitrage betting all boils down to spotting mismatched odds. Since each sportsbook sets its own lines, the arbitrage betting odds may differ from one site to another. These differences are where you can step in and secure a profit.

In practice, this means you have to compare sportsbooks and see where their numbers don’t match. For example, in an NBA match between the Miami Heat and the Boston Celtics, one bookmaker might price the Heat at 1.80, while another offers the Celtics at 2.40. You can use the formula to check if both odds are fit. By placing calculated bets on both, you can lock in profit regardless of the result.

Software and tools

Instead of crunching the numbers by hand, many punters now use an arbitrage calculator to save time. Sites like arbitragecalc.com show how much to stake on each side and how much profit you can expect.

When finding odds, you can also easily scan them across sites yourself. However, it takes time and focus. To make things easier, you can also use tools like BetBurger or OddsJam to track markets and flag arbitrage bets instantly.

Still, manual checks, though slower, remain the safest method. It also lowers your risk of getting flagged or limited by sportsbooks.

The benefits and drawbacks of sports arbitrage betting

Like any other strategy, sports arbitrage betting also has its ups and downs. It can be a reliable way to profit, but it also comes with risks that you should be aware of. Here’s a closer look at its strong points and weak spots:

Pros

• Secured profit: The main appeal of arbitrage betting is the promise of a sure win. Since you’re covering all outcomes, there’s no risk of walking away empty-handed.
• Based on numbers, not luck: Unlike other sports betting strategies that depend on luck, this one uses numbers. By working with odds and formulas, you bet with logic instead of feelings
• Flexible betting: Arbitrage can work on many sports and events, as long as the odds differ. This gives you more chances to find value in more than one market.
• Steady returns: The gains from arbitrage betting may be small, but over time, they build up into a steady profit. 

Cons

• Risk of losing accounts: Many bookmakers dislike arbing, as it basically removes the margin they set. They may lower your limits or block your account if they suspect you’re doing it.
• Hard to pull off quickly: Odds change fast, so timing is crucial with arbitrage. A few seconds of delay may ruin the chance, which makes arbitrage slightly stressful.

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Is arbitrage betting legal?

Since arbitrage betting is quite a smart move, you might’ve wondered about its legality among sites. The truth is that while most sportsbooks dislike it, arbitrage betting isn’t against the law. This means you won’t face any legal punishment for doing it.

The tension only comes from how betting sites view it, since it can cut into their profits. For this reason, most sportsbooks set strict terms and conditions to prevent it.

How do sportsbooks detect arbitrage bets?

Bookmakers use software or tools to spot unusual betting patterns linked to arbitrage. They often monitor bet sizes, timing, and the kind of sports you’re betting on. Specifically, here are some common signs that these sites watch for:

• Unusual bet sizes
• Bets placed across platforms all at the same time
• Shopping for lines too often
• Picking unpopular markets or matches.

If you’re flagged, the platform may take action. Here are some possible penalties you may face:

• Strict betting limits on your account
• Restricting account access
• Lowered odds on your future bets
• In severe cases, they may fully ban your account from their site.

Sports arbitrage betting tips

Arbing can be profitable if you approach it smartly. With the right habits, you can get more value out of your bets while avoiding risks. Here are some practical arbitrage betting tips to help you make the most out of this tactic:

• Shop around for odds: Line shopping means you look for the best value offered by sportsbooks. This helps you compare odds and see which ones are the most effective for arbing.
• Act fast: Odds shift fast, so you must act quickly to secure any arbitrage betting opportunities.
• Know the betting limits: Before placing any bets, check if there are any betting limits. Some platforms may set a cap lower, so it’s best to factor these in as well in your maths.
• Check sportsbook terms: Each betting site employs specific betting terms. Make sure to review their fine print to avoid any cancelled bets.
• Stay updated on market changes: Sports events are dynamic, and any changes can affect the odds at any moment. Keeping up with sports betting markets and news is helpful.
• Manage your bankroll: Bet your funds wisely. Make sure to spend only a portion you’re comfortable losing.

Turn your smart bets into thrilling wins on Gamdom

Arbitrage betting is a thrilling and rewarding tactic when done right. This arbitrage sports betting guide highlights how skill, timing, and maths can bring steady wins. With the right balance of speed and proper planning, it can be a useful strategy for smarter betting.

At Gamdom, you can enjoy the thrill of betting with the extra edge of smart strategies. Get access to sports and esports betting, as well as a wide range of casino games, and you’re all set for a fun adventure. Ready to step up your game? Sign up to Gamdom and explore the thrill for yourself.

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