What Is Arbitrage Betting? And How To Arb Bet Successfully

• Arbitrage betting is when you place a back bet and a lay bet on opposing outcomes of a sporting event.
• Arbitrage betting helps you win 100% of the time, but it’s best to use arbitrage betting to achieve small profit margins.
• Arbitrage betting is not illegal, but it is frowned upon by bookies and sports books, and you can be banned from a sportsbook if you’re caught.

In sports betting, you can try many different betting strategies to identify the best betting opportunities and maximize your profits. While not many of these strategies promise a 100% chance of winning, arbitrage betting does. That’s because arbitrage betting has you placing two opposing bets at the same time, thus guaranteeing that you’re going to win, no matter the outcome.

Let’s explore where this betting strategy comes from, how it works, and how to use it successfully with your favorite online sportsbooks and betting exchanges.

What Is Arbitrage Betting?

Arbitrage betting, also known as “arb betting” or “arbing,” is when you place a back and lay bet on the same event at the same time. So you’re betting money that an outcome will happen, and you’re betting another amount of money that it won’t happen.

Arbing is a way to hedge your bets and guarantee some profit. You must place the back bet on a different book or exchange than where you place your lay bet. That’s because books set their odds independently, and betting exchanges require the opposing bettors to set the odds themselves. These differences in odds are the reason you’re able to place simultaneous yet competing wagers and make money doing so.

How Does Arbitrage Betting Work? (With Examples)

Generally, you place a back bet (wagering that an outcome will happen) using an online sportsbook or offline retail sportsbook. You typically only place a lay bet (wagering that an outcome will not happen) on a betting exchange.

You can use the arbitrage betting strategy for some of the following sports event outcomes:

• Betting on a particular horse to win/lose
• Betting that one team will win over the other in a game, like American football, soccer, or baseball
• Betting that the total score of a game will be over or under a certain amount, such as in American football or basketball

Let’s go through a few examples to show you arbitrage betting in action.

Example 1: Over/Under

You’re betting on an upcoming NFL game between the New York Jets and the Philadelphia Eagles. You have the chance to make a wager on the total points scored in the game. Here are the odds:

• Over 35 points: -250, from Site A
• Under 35 points: 290, from Site B

You would wager $100 that the score will be over 35 points at Site A. You would then need to wager $35.90 for the under bet at Site B. Your payout, no matter the outcome, will be $140, for a profit of $4.10. 

Example 2: Moneyline

You want to bet for that same game on the winning team. The odds are as follows:

• Jets Win: +390
• Eagles Win: -320

You would wager $100 on the Eagles to win as your back bet and $26.79 on the Jets to win as your lay bet. No matter which team wins, you get a payout of $131.25 for a profit of $4.46.

Is Arbitrage Betting Legal?

Yes, arbitrage betting is legal. There are no laws saying you can’t use this betting strategy, and you can’t get arrested or charged for doing it.

However, arbing is often discouraged because bookies don’t like the practice. That’s because you’re guaranteed to win, even just a small amount. That means one of the bookies you’ve bet with is going to lose. Arbitrage betting also takes more of a mathematical approach to betting as opposed to applying your knowledge of sports, teams or competitors, and other factors that impact an event. Many bookies believe this undermines the betting experience.

Some bookies communicate with each other to suss out potential arb bettors. Others investigate your betting activity when they notice odd betting patterns that could indicate arbitrage betting or other unsavory betting strategies.

If you’re caught arbing, you may have your betting account suspended or terminated. You may even get banned from a sportsbook or betting exchange, or you could have your betting activity severely limited to low-stakes wagers only.

Always check the terms and conditions for an online sportsbook as they typically outline their rules and punishments regarding arbitrage bettors and other unwanted betting strategies.

How To Arb Bet Effectively

While using arbitrage betting can be risky, there are many ways to use this strategy without getting caught. Here are some tips for arbing effectively, no matter the sport you bet on:

Pick popular sports

The more niche the sporting events are that you’re betting on, the more obvious arbitrage betting is to bookies. That’s because there are fewer bets on sports that aren’t as popular.

Consider sticking to popular sports, like soccer and horse racing, that have international appeal and broad, busy markets. Note that profit margins may be smaller with arbing because the markets are so big, but that can help you stay under the radar.

Place back bets in person

Online sportsbooks are super convenient since you can make bets from the comfort of your home. But betting online does leave a digital trail. You can make your betting habits more discrete by placing bets in person at a retail betting shop.

Have multiple betting accounts

You can increase the amount of betting opportunities you have when you manage multiple betting accounts across multiple betting sites. This also helps you stave off suspicion by spreading your arb bets over multiple accounts.

You should also keep your retail and online accounts separate. Some retail betting shops allow you to link online accounts, but you can further reduce access to your betting activity by opting out.

Bet with fixed odds sites and betting exchanges

Use both sportsbooks and betting exchanges to get more access to arb betting opportunities. A sportsbook acts as the bookie that sets the odds, but a betting exchange is where gamblers can bet against each other and they set the odds on their own. A betting exchange will take a small commission whether you win or lose, so be sure to factor that into your arbitrage wager to ensure and maximize profits.

Lose every once in a while

Make sure to mix in some losses, though small, with your consistent wins. This can make your betting and winning history look less suspicious. But you have to make your wins and losses somewhat insignificant, with the occasional big win, to pull it off.

Try other betting strategies

In addition to losing occasionally, you should also mix up your sports betting strategies to reduce possible suspicion. Consider prop betting or parlays to vary your betting history and your wins and losses.

Using other betting strategies can also help you increase your profits since arb betting isn’t known for producing significant profits, when done so discreetly.

Round your bets to the nearest dollar

When you arb, you often bet one even number and one non-rounded number on the other wager. Too much of this betting pattern could look suspicious. Consider rounding your wagers to the nearest dollar. This does minimize your profit margin a little bit, but it can help you arb bet more often without attracting suspicion.

Let’s consider the over/under wager on the Jets/Eagles game in the examples above. You could round up the $3.90 bet to $4.00, which would slightly reduce your payout and profit, but make it less obvious that you’re using arbitrage betting.

Use online tools

Subscribe to a betting software that searches for arbing opportunities in upcoming sporting events. This can cost a pretty penny, but it saves you the time and brain power of manually researching books and odds for upcoming events.

You should also start out using an arbitrage betting calculator to make sure you’re wagering the correct amounts and maximizing your profits.

Deposit and withdraw less often

Too much activity regarding deposits and withdrawals could attract suspicion from bookies, which is why taking out your winnings too often is one of the biggest sports betting mistakes. That’s because someone who is using the strategy and winning consistently may be taking out their profits more often than other betters. But if you deposit or withdraw less frequently, you won’t attract suspicion this way.

Take advantage of perks at online sportsbooks

Consider arbing when you’re given perks, like an odds boost or free betting credits from a sportsbook. Check out our reviews of the welcome bonus offers from top legal New Jersey casinos and sportsbooks for these opportunities to maximize your profits. Just make sure to review the terms and conditions of each offer you opt into to make sure you understand how much of your own money you have to bet before you’re able to withdraw winnings.

Now that you know how arbitrage betting works, you can find the online tools you need to make it happen. Again, not many sportsbooks appreciate those who use arbitrage betting, but if you’re smart about these wagers, you can slightly increase your profit margin 100% of the time.