Arbitrage betting is a form of sports betting that has become extremely popular with the rise of the sports betting market. Since this technique focuses on covering different outcomes, it is often referred to as a form of Matched Bettingmaking it one of the many techniques you can incorporate into your betting strategy. Here, we’ll take a look at what arbitrage betting is, how it works in different sports, and everything else you need to know about arbitrage!

What is arbitrage betting?

Arbitrage betting is a betting technique where you place bets at different online sites, whether bookmakers or betting exchanges, to cover all outcomes of a sporting event, ensuring that no losses are incurred. However, the main aspect of arbitrage is discovering differences in odds.

The concept of arbitrage is similar to matched betting, although no free bets or offers are used here. Therefore, it is a matched betting technique that can be used in different sports events and is consistent with value bet technology. After discovering the difference in odds between bookmakers on the same sporting event, you can calculate how much money you need to invest on both bets to split your desired bet and eliminate the possibility of loss. Essentially, you split your entire bet between two outcomes, with the one with the lower odds receiving the higher amount. This in turn evens out the two sides of the bet, meaning you’ll get the same profit margin no matter which outcome wins.

If we look at another example, it is similar to the idea of ​​buying a product at a lower discounted price and then selling it at a higher price. With arbitrage betting, we find that the odds are relatively too high or too low, which means that when the sporting event ends, we will at least make some profit regardless of the outcome.

Sometimes called “sure bets,” 98% of arbitrage bets return less than 1.2%. This means that when engaging in arbitrage betting, the strategy may require larger bets or a large number of smaller bets that add up quickly to be worthwhile.

How does sports betting arbitrage work?

Let’s look at a simple example to make this concept easier to understand. Sports like the NFL and tennis are easier to place arbitrage bets on because the game cannot end in a draw, so there are only 2 options. Arbitrage can still be used for football betting, but it is riskier as there is a chance that a match will end in a draw.

Here’s a step-by-step guide on how to find these bets via the OddsMonkey tool:

1. Use an odds comparison tool like OddsMonkey odds matcherfind a sporting event that offers two outcomes
2. Find the highest odds for each outcome from two different bookmakers
3. Calculate whether odds represent arbitrage betting opportunities
4. If so, use our calculated personal bets Arbitrage Betting Calculator
5. Place bets with respective bookmakers

For example, we will use the example of tennis, this could be Carlos Alcaraz vs. Jannik Sinner, and there will be a large number of betting markets available for arbitrage betting between various bookmakers. For this example, we would say Carlos Alcaraz is priced at 6/5 at one bookmaker, while Jannik Sinner is priced at 13/10 at another bookmaker.

As you can see in this example, the odds for both players are very similar. However, this strategy involves betting on both players to win, ensuring a profit regardless of the outcome of the match. Here are step-by-step instructions on how to use it as an arbitrage bet:

Step 1: Taking a total bet of £500, the bettor would have to bet approximately £235 on the first bookmaker Carlos Alcaraz.

Step 2: Bet the remaining £265 with Jannik Sinner at the second bookmaker.

Step 3: If Carlos Alcaraz wins, the punter will receive approximately £517, a profit of £17, while if Jannik Sinner wins, the total return will be £609.50, with a profit of £109.50.

In this example, using high stakes seems like a pretty daunting bet. However, if done correctly, there is no risk and no matter how much you invest, there will always be some form of profit coming back to you. If you are interested in tennis, check out our Tennis Matched Betting Guideavailable on OddsMonkey.

While tennis is one of the most popular sports for arbitrage betting in the UK, there are other sports around the world that are also great for arbitrage, such as American football.

Let’s take the Pittsburgh Steelers vs. Kansas City Chiefs as an example. The Steelers have odds of 1.5/1 and the Kansas City Chiefs have odds of 0.8/1. By using a technique similar to what we saw in the tennis example, we can create an arbitrage bet here to ensure there is no chance of loss.

Step 1: Taking £100 as an example, you could bet £41.86 with bookmaker A and bet on the Pittsburgh Steelers to win at odds of 1.5/1

Step 2: Deposit the remaining £58.14 with Bookmaker B to pay for the Kansas City Chiefs win

Step 3: Due to the difference in odds, regardless of the outcome of the match, the bettor will receive £104.65, for a total bet of £100, the bettor will have made a profit of £4.65.

Since ties can occur in sports such as football, we recommend that you continue to play sports that tend to have a win-lose outcome, as a draw will reduce your chances of success. Since you bet on both teams to win, a draw means both teams lose, so you won’t make any profit. To ensure you make a profit, stick to the sports listed above, such as American football and tennis. If you are interested in American football betting then you can check out our details NFL Betting Guide.

While this is a small profit for such a large bet, there is zero risk and the bet pays out quickly. This means that, given enough opportunity, you can perform the same process multiple times a day and steadily increase your profits. Everything is profit except your £100 capital. Of course, you don’t need to start with £100; you can increase or decrease this amount, but this is the easiest way to ensure you invest the same amount every time you make an arbitrage bet.

If you are able to find these opportunities across sports, then you can slowly continue to build up your bankroll, as arbitrage betting in the right way will eliminate any risk of loss. This isn’t the only way to get the most out of your bets with OddsMonkey Matched Betting Blog Full of great tips and guides on how to take your sports betting to the next level!

How to spot arbitrage betting opportunities

There are a number of ways you can discover UK arbitrage betting opportunities. The first is by manually searching and comparing bookmaker odds to find breaking points and where profits lie.

While it takes some time, there are other ways to find arbitrage betting opportunities, one of which is formulas.

arbitrage formula: Arbitrage% = ((1/decimal odds of result A) x100) +((1/decimal odds of result B) x100)

For example, player A wins (1/ 1.18) x100 = 84.746%

Player B wins (1/ 7.00) x 100 = 14.286%

84.75% + 14.29% = 99.032 (anything less than 100% is an arbitrage bet)

Bettors can also calculate the potential profit of an arbitrage bet using the following formula:

Another option is to use software Betting Calculator Quickly find out profit margins and potential. Software like OddsJam allows you to find arbitrage betting opportunities without having to search for different bookmakers and their odds. By using arbitrage betting software, you can save some time compared to searching manually.

Arbitrage Betting and Matched Betting

Now that we have understood what arbitrage betting is; we can compare it to matched betting and what similarities and differences occur between the two.

Similarities between Arbitrage Betting and Matched Betting:

✅Profits are guaranteed if done correctly

✅Can be used for a variety of different sports

✅Both may result in account suspension and ban

The difference between arbitrage betting and matched betting:

❌Matched betting involves using offers such as free bets or promotions; arbitrage betting does not use free bets.

❌Arbitrage betting is about looking for differences in odds.

❌ Arbitrage betting can be carried out as long as a discrepancy is found; matching betting must be carried out with a discount.

Arbitrage Betting FAQs

Since arbitrage betting is a unique form of betting, we decided to look at some of the most frequently asked questions about this method of sports betting.

Is arbitrage betting legal?

Although arbitrage is not illegal, bookmakers do not like it if they are able to detect any suspicious activity on your account (such as arbitrage). This can result in your bet being cancelled, which can have huge knock-on effects when it comes to arbitrage. For example, if one bet is canceled but another bet is not, a loss may result if the bet does not come in.

How much money can you make from arbitrage betting?

How much money you can make from arbitrage betting depends entirely on three factors:

• How often do you place arbitrage bets?
• How much have you invested in your arbitrage bet?
• Are you looking for the best odds on arbitrage betting?

The more often people make arbitrage bets, the more profit they can make from the strategy because arbitrage guarantees profits if done correctly. The higher the stakes, the higher the profits, and if you don’t find the best odds for arbitrage, you may progress slower than others.

Is there any way to avoid getting banned when placing arbitrage bets?

Arbitrage can be a dangerous strategy in terms of your account security though, as when accounts are found making arbitrage bets, they can be restricted or even banned. Some bettors try to avoid this by placing bets, and if you’re thinking, ‘What is Cup Betting? You can find out in our detailed OddsMonkey guide.