Arbitrage Betting

Arbitrage betting is a strategy that locks in a predetermined return by placing offsetting bets on every possible outcome of a sporting event across multiple sportsbooks. This guide explains the math behind why it works, walks through an example, addresses the legal status in the US, and covers the risks every bettor should understand before placing arbitrage bets, including the account limits that arbitrage activity tends to trigger.

If you are new to matched betting, start with our What is Matched Betting guide first.

What is Arbitrage Betting?

Arbitrage is simultaneously buying and selling something in two different markets at two different prices to lock-in a profit. This most often happens with financial markets, but it also applies to sports betting. Sports betting arbitrage occurs when two different sportsbooks have a discrepancy in the odds of an event. Most sports bets only have two possible outcomes, the home team wins or the away team wins. By placing just two bets, you can be confident one of those bets will win. This approach to sports betting relies on finding discrepancies in odds.

When the discrepency in odds is large enough, you can size two bets so that the winning bet profits more than the losing bet loses, leaving a predetermined return regardless of the outcome. The return is typically 1 to 2 percent of the total amount staked.

Arbitrage betting is sometimes called sports arbitrage, arb betting, or simply arbing.

The Math Behind Arbitrage Betting

A simple example is if DraftKings has the home team to win at +105 and FanDuel has the away team to win at +105 (If needed, check out our How To Read Sportsbook Odds guide). By placing a $100 bet with DraftKings on the home team and a $100 bet with FanDuel on the away team, you can profit of $5. If you bet $1,000 on both sides, you profit $50 no matter who wins.

If the home team wins...

• DraftKings: $105 winnings
• FanDuel: $100 loss
• Net Profit: $5

If the away team wins...

• FanDuel: $105 winnings
• DraftKings: $100 loss
• Net Profit: $5

The hardest part about arbitrage betting is finding arbitrage opportunities and determining how much to bet on both sides. This is where using an arbitrage betting calculator comes into play. DarkHorse Odds has an arbitrage Bet Finder that finds the best arbitrage opportunities and does the math to determine exactly how much to bet. We take all the guesswork out of arbitrage betting. Start your Free Trial now.

How to Find Arbitrage Opportunities

Arbitrage opportunities exist because sportsbooks use different models to determine a bet's odds, and adjust their odds at slightly different speeds. When one book lags the market, its odds may briefly create an arb against another book's odds. Once the lagging book updates, the opportunity disappears.

Three factors make these opportunities hard to find manually:

• They typically last only a few minutes.
• They occur most often on alternate lines and player props rather than main markets.
• Identifying them requires comparing odds across multiple sportsbooks simultaneously.

An arbitrage bet finder solves all three problems. It scans odds across every supported sportsbook continuously and surfaces opportunities the moment they appear. The DarkHorse Odds Arbitrage Bet Finder does this and also calculates the exact stake required on each side.

Is Arbitrage Betting Legal?

Arbitrage betting is legal in any US state where online sports betting is legal.

That said, legal does not mean unrestricted. Sportsbooks operate as private businesses and reserve the right to limit, suspend, or close any account they choose, for any reason consistent with their terms of service. Arbitrage activity is one of the patterns sportsbooks watch for, and accounts identified as arbitrage bettors are routinely limited.

The legal status is similar to card counting in blackjack: not against the law, but actively discouraged by the operators and likely to result in your account being restricted. See our Don't Get Limited guide for the techniques that reduce limit risk.

Live Arbitrage Betting

Live arbitrage betting (sometimes called in-game arbitrage or live betting arbitrage) is the same strategy applied to odds posted while a game is in progress. Live odds move much faster than pre-game odds, which produces more frequent arbitrage opportunities but also higher execution risk.

The risks specific to live arbitrage:

• Odds move between bet placements. If you place the first bet and the second sportsbook updates its line before you confirm the second bet, the arbitrage may no longer exist. You can end up with a one-sided position and a real risk of losing money.
• Partial fills. Some live markets accept smaller maximum stakes than pre-game markets, which can leave you under-hedged.

Live arbitrage requires fast odds data and disciplined execution. Tools designed specifically for low-latency live odds, such as Double Down Odds, are best for live arbitrage.

How Much Can You Make Arbitrage Betting?

Most arbitrage opportunities produce returns in the 1 to 2 percent range on the total stake. A bettor cycling $10,000 of bankroll through arbitrage opportunities each week could expect to net $100 to $200 per week before accounting for the ceiling created by sportsbook limits.

Several factors limit how much the strategy can scale for any individual bettor:

• Maximum bet size per market: Arbitrage opportunities show up most often on alternate lines and player props, where sportsbook maximum bet sizes are smaller.
• Account limits: Sportsbooks identify and limit consistent arbitrage bettors, often within weeks, which restricts a bettors maximum bet amount.
• Bankroll fragmentation: The strategy requires capital deposited across many sportsbooks at the same time, which reduces the working capital available for any single opportunity.
• Available Sportsbooks: The more sportsbooks that are available to you the more arbitrage opportunities you will have.

Whether arbitrage is worth pursuing depends on your circumstances. For most bettors, matched betting produces higher absolute returns with lower limit risk during the period when promotional offers are still available. Arbitrage can be profitable once promotions slow down, however this will quickly lead to limits. Arbitrage does work well as the primary strategy on a betting exchange or prediction market where limits do not apply. Learn more about prediction markets and betting exchanges in our Betting Platforms guide.

Many DarkHorse Odds users start with matched betting, do some arbitrage betting, and then move to +EV betting.

Actual returns depend on odds availability, bankroll, and individual execution.

A Warning About Arbitrage Sports Betting

Arbitrage in sports betting only occurs if one or both sportsbooks have odds significantly different from the market average. Therefore, when you place those bets, you are an outlier and are likely getting better odds at that time than when the event starts. This is known as beating the closing line or having a positive closing line value. Sportsbooks do not like bettors who consistently beat the closing line. In the long run, bettors who beat the closing line regularly tend to be profitable. Sportsbooks will take action to prevent this and can impose limits. Learn more in our Don't Get Limited and Avoid Small Markets guides, but know that getting limited is the one of the worst things that can happen to you as a matched bettor. Arbitrage opportunities normally only last a few minutes and are hard to find without an arbitrage betting finder. Due to this, when you partake in sports arbitrage betting, you are likely setting off several red flags to sportsbooks:

• You bet on the exact line that was "wrong" in the few-minute window it was wrong.
• Chances are, it was an alternate line/player prop, which are much smaller markets.
• Chances are you beat the closing line value. This means you got better odds than the final odds before the game started.

Human error

Placing the wrong side of a bet, entering the wrong stake amount, or betting on the wrong market converts a hedged position into an unhedged position. The most common errors are betting both sides on the same outcome (for example, two bets on the home team instead of one on each team) and entering the stake intended for the other side.

To reduce error risk, queue both bets in their respective bet slips before placing either, double-check the market and stake before confirming, and place both bets in immediate succession.

Odds movement between placements

If the odds on either side move after you place the first bet but before you place the second, the arbitrage may shrink or disappear. You can still hedge at the new odds, but the result may be a smaller profit or a small loss. The risk is highest on live markets and on smaller markets where line movements are larger.

Voided bets

Sportsbooks reserve the right to void bets that result from posted-odds errors. If you bet on what was clearly a posted error (for example, a -250 favorite priced at +200), the sportsbook may void your side while the other sportsbook honors theirs, leaving you with an unhedged position on the other side.

How To Profit From Sports Betting Arbitrage

Profiting from arbitrage betting is as simple as placing two opposing bets. There are no promotions involved, nor do you need to apply anything special to your Bet Slip. You will want to use an arbitrage sports betting calculator to find bets and know how much to bet. Using an arbitrage calculator designed for sports betting will ensure you bet the right amount on both sides so that your profit is the same no matter who wins. The screenshots below show an example of arbitrage in sports betting between DraftKings and Betly.

The bets above result in a profit of over $38, no matter who wins the game.

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How Much Can I Make From Sports Betting Arbitrage?

Many sports arbitrage betting opportunities are in the 1-2% range, meaning your profit will be 1-2% of your total bet amount. For example, if you bet a total of $1,000 between the two bets, you will profit $10-$20. There are 2 limiting factors to how much you can profit from arbitrage.

1. The maximum bet amount for each specific bet.
2. Most arbitrage opportunities are on alt lines and player props, so you may want to avoid them to avoid limits.

Using The DarkHorse Odds Sports Betting Arbitrage Calculator

DarkHorse Odds has an Arbitrage Bet Finder designed to find the best arbitrage bets available. We comb through millions of possible combinations daily so that you can profit from them. Explore the DarkHorse Odds arbitrage betting calculator with our Free Trial.

Use The Arbitrage Betting Finder

Select the Arbitrage Bet Finder.

In all of our guides, we filter to “Main Lines Only” as a way to avoid limits. Limits will greatly reduce your long-term earnings potential. Learn the best practices on avoiding sportsbook limits in our Don't Get Limited guide. You can apply this by selecting Filters -> Main Lines Only. This is not required but highly recommended. Arbitrage happens most often on player props and alternate lines. Consistently betting on arbitrage opportunities on these markets may lead to limits.

This sets Market Type to Moneyline, Spread, and Total. It also sets Market Segment to Full-Time+ and Full-Time.

Select Your Arbitrage Betting Opportunity

After entering the bet amount, you will be presented with a table of all available arbitrage opportunities. You can then select the matched bet that best fits your needs. The example below shows a $48 profit by hedging a $1,000 bet.

Place Your Arbitrage Bets

After selecting the bet you want, viewing the Bet Slip provides all the details to hedge properly and ensure maximum profit. In this example on DraftKings, you would place a $1,000 Primary Bet on the LA Angels moneyline at -115. Then, place a Hedge Bet on Betly of $831 on the St. Louis Cardinals moneyline at +125. Either way, you will profit $38.

Sports Betting Arbitrage Outcome Explanation

Clicking the information icon above displays further details explaining exactly how you profit $38 no matter the event's outcome.

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