What is arbitrage sports betting? How do bookmakers know you are arbing?

Published on 12 Jul 2021 | Last updated on 11 Nov 2021 | Reading time: 6 minutes

If you've been wagering for a while, you've probably already heard of arbitrage betting. Some of you may know what that means, while others are reading this, thinking to themselves 'What is arbitrage betting and why do I need to know more about it?'. To those two and too many more questions you might have, we will answer in today's article.

So, if you want to learn what arbitrage betting is, is it even legal and how bookmakers know you are arbing, keep on reading. Without further ado, let's get started because we have lots of information we want to share with you.

What is arbitrage betting and how it works

‘What is arbitrage betting?’ - That is usually the first question beginner bettors ask us. So, of course, we will start with that. Arbitrage sports betting is when a sports bettor takes advantage of different prices in different markets to find value. A trader might notice that odds for a certain event vary significantly and take action to exploit the difference, usually by backing both outcomes.

The fact that the bettor always wins, no matter the outcome of the event, makes arbitrage sport betting a really attractive alternative to many people. Some even call this type of betting 'the safe bet'. Now bear in mind that the received reward, in most cases, is just a tiny share of the placed stake. No matter what the amount of the reward is, it is guaranteed that the bettor would get it.

Before we move on to our example, we must say that it is not a very common phenomenon. It occurs whenever different bookmakers have disagreements on what the betting odds for a particular event should be. A mistake made when pricing the market may also result in a possible arbitrage bet. While bookmakers do everything in their power not to give bettors opportunities for arbitrage bettings, sometimes mistakes are made. Now let’s take a look at our example:

Arbitrage betting example

Examples are proven method for learning. Therefore, to give you the clearest idea of what an arbitrage betting would look like, we've set up an example. Let's say you want to place a bet on who is going to win the UEFA Champions league. You then start looking at predictions made by different bookmakers. You then come to the realization that two of the bookmakers have made different predictions about who is going to win the championship. Bookmaker 1 has predicted that Team A will win, while Bookmaker 2 has predicted that the championship will be won by Team B. You decide to take advantage of the situation and you place two different bets, one for each team. This means that regardless of the outcome of the game, you will make a profit.

Arbitrage betting works the best when the event has only two options - either Team A or Player A wins or the other way around. Football matches or tennis games make the best examples.

Do bookmakers allow arbing?

Now let's discuss something of great importance - is arbitrage sports betting legal? The answer is yes. Arbitrage betting is not forbidden by law. However, you must keep in mind that in some countries this type of betting is highly regulated by the ruling government. So if your country allows gambling and betting in general, there should not be a problem.

But where do bookmakers stand? Do they allow arbing or are they against it? To be honest most bookmakers are strictly against arbitrage betting. It is usually strongly discouraging and it even may be included in their terms & conditions policies. We advise all reading the bookmakers' policies before arbing as there is a real possibility that you may be banned if you get caught. If you wonder what's the reason behind this, the answer is quite simple - it costs them money.

How do bookmakers know you are arbing?

If you've always asked yourself 'How would they know?', then you are not alone. There are two possible scenarios here. According to the first one, bookmakers become suspicious of you and your account after several consecutive wins. Large bets are also a big giveaway that tells the bookmakers you may be arbing. Then they will closely monitor your activity and if they come to the conclusion that you are arbing, you may be banned or even blacklisted and your account could be closed without any warnings. Whether your account will be restricted or not depends on the bookmaker's policy, so once again - never skip those terms & conditions!

Now according to the second scenario, some bookmakers share information with each other - be it the accounts, the IP addresses, or even the names of blacklisted people, or just the suspicious accounts. However, no one can really confirm whether that information is actually correct. It is also suggested that the software the bookmaker uses records the Betfair odds at the exact same time you place a bet.

Risk factors that might get you caught

Let’s see some factors that might make give you away to the bookmakers:

Not following the terms & conditions - This is probably the third time we are saying this but always follow the bookmakers’ policies unless you want to get banned;
Large stakes - Yes, they do make you look suspicious. Large stakes make you stand out more to the bookmakers. So, we advise you to stay low, especially if you normally bet on a smaller scale;
Inexperience - If you are new to the betting world, the chances of making a mistake whilst placing an arbitrage sports betting are really high. We advise you to gain a little experience with normal betting first before you start arbing.

Arbitrage betting tips

We have prepared for you some tips that you can follow so that you won’t get caught:

Do other kinds of bettings - Unless you want to get caught, we advise you to place normal bettings. Saying this we don't mean to just start throwing bets randomly, because that way you will most likely lose some money. You can, however, wager on different sports events just so you don't seem suspicious;
Round your bets - Although arbitrage bettings require you to make some weird wager sizes to guarantee profits, try to round your stake. For the sake of our example, we will be using the USD currency. For instance, instead of wagering $27.53, wager $28;
Spread your bets around different bookmakers - This will significantly lessen your chances of getting caught. While it may be a little annoying and time-consuming, placing sporadic wagers among different bookmakers will make you seem like an occasional gambler;
Play smart - Always do your research and double check the odds before placing both sides of the bets;
Keep track of your transactions - We advise creating a spreadsheet to monitor your transactions.

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Conclusion

Arbitrage sport betting is for people with a lot of free time, attention to detail, and quick reactions. One needs to pay a lot of attention to the industry in order to find winning situations. Always be cautious, because you don't wanna get caught. We hope we've given you enough information that will help you get started. If you liked what you read, we are sure you'll also be interested in other betting topics. So, in case you want to read those too, you can find them in our blog.