Arbitage Betting Explained 

Anyone interested in sports betting loves the sound of a sure-fire winner. Far away from the longshot bet builder wagers many compile, arbitrage betting relies on mathematics to deliver guaranteed profit.

The key to success with arbitrage betting is wagering on every possible outcome from a given event. This involves shopping around for the best available prices, perhaps using a price comparison site to do so. 

Of course, such opportunities are not always available. It isn’t applicable to certain sports. When it is viable, though, arbitrage wagers use formulae and probabilities to calculate wagers which deliver certain profits.

How Does Arbitrage Betting Work?

In the current era of online sports betting, there are more betting options than ever before. Bookies don’t need brick-and-mortar betting shops, so there are new sportsbooks cropping up constantly.

The competition is fiercer than ever before. Bookies, as a result, have to offer very competitive prices if they are to attract and retain punters. This is where opportunities for arbitrage betting arise.

By researching and finding the ‘best price’ offered on every outcome, you can uncover the chance to place an arbitrage bet.

There are various forms of software available to assist with this process that will act as an arbitrage betting calculator.

For the simplest form of arbitrage betting, you will be focused on sports events where there are only two possible outcomes, e.g. tennis, darts, snooker or basketball – one player/team versus another where there is no option of a draw involved.

Arbitrage betting is also possible on events with three potential outcomes, such as soccer, where there is win, lose or draw potential.

Often, the window of opportunity for arbitrage betting is relatively short. Prices on a given event are subject to fluctuation and so the arbitrage bettor must wait for the correct conditions in which to strike.

What Do You Need For Arbitrage Bets?

The basic premise of arbitrage betting is the requirement for at least two bookmakers to be offering different odds on the same event. You must identify the bookie with the best value odds.

Once you have found a sufficient price differential, use either an arbitrage betting formula or arbitrage betting calculator to work out how large a stake you need to place on each bet to guarantee profit. 

One key point to note on arbitrage betting is that it requires a large bankroll due to the fact the margins are relatively small. In most instances, the margin available for profit using this betting method lies between 2-5%.

Should you have the expertise and patience to implement an arbitrage betting system, over time you can accumulate significant and consistent profits.

Arbitrage Betting Example

Take, for example, a tennis match between Aryna Sabalenka and Iga Swiatek.

The best available odds offered on Swiatek to win are 5.7, while the best price on Sabalenka to win is 1.25. Using mathematics, you can determine how much to place on each outcome in order to generate a guaranteed profit.

Assuming a bankroll of £1000, you would calculate your bets as follows:

By placing a £175 bet on Swiatek and an £800 bet on Sabalenka, you will make a profit of either £22.50 or £25 irrespective of who wins. If Sabalenka wins, that means a 2.56% return on the initial investment.

By familiarising yourself with the margins and numbers involved, you will be able to spot when an arbitrage betting opportunity exists, meaning you can place your bets quickly while the window remains open.

The potential for an arbitrage bet exists when the arbitrage percentage is less than 100%.

Arbitrage Betting FAQs

What Sports Does Arbitrage Betting Work For?

Arbitrage betting is usually only worthwhile when there are two outcomes. For example, looking at odds available on a tennis game, NFL fixture and/or darts match.

It is possible with three outcomes, but the equations become more complicated.

What Situation Do You Need For Arbitrage Betting?

First and foremost, you need two bookmakers offering different odds on the same event. At this point, finding bookmakers offering the best possible odds on each outcome is crucial.

Arbitrage Betting - When To Strike

There is no ‘ideal time’ to take advantage of arbitrage betting techniques but be wary that bookmaker prices can change at any given time.

There is always an element of risk involved – nothing is a given so keep an eye on price fluctuations.

Is Arbitrage Betting Fun?

Yes, arbitrage betting is fun but it does require an additional level of skill and risk.

Once you are familiar with the margins and odds required to fit the system, punters can start to take full advantage of this technique.