What is arbitrage sports betting

Sports betting arbitrage is a way of placing bets on the outcome of sporting events to net a profit, whatever may be the results of the event. It involves taking advantage of the differences in the odds that bookmakers offer on different participants. Arbitrage bettors, called 'arbitageurs', place their bets on every selection of a sporting event in a manner that ensures them a profit no matter who the winner is. It is a way of gambling for assured returns and is termed as no risk gambling.

There are different names for sports arbitrage opportunities; all of which refer to the same style of betting. The most popular is ‘arbs’, while other names are overbrokes, surebets, underrounds, all carrying exactly the same meaning. Sports arbitrage bettors are able to get guaranteed profits by locating the highest odds on each participant and placing their bets with different bookmakers accordingly.

It is first necessary to find at least two different bookies whose prices differ; and the difference is high enough to create an arbitrage opportunity that can provide a decent profit. To state it simply, you bet on one participant with one bookie and bet on the other with another bookie. The odds offered by each of the bookies should be different and will be the basis to determine the amounts that need to be wagered on each participant to create an arb.

For example, in Wimbledon, with John McEnroe and Bjorn Borg competing with each other, Bookmaker X offers 1.91 for McEnroe and 2.39 for Borg. Bookmaker Y offers odds 2.2 for McEnroe and 1.72 for Borg. This presents a sports betting arbitrage opportunity to provide guaranteed profits no matter who wins. Suppose you are prepared to invest $500, what can be a good way to an arb? Take a look at the details here.

Arbitrage sports betting: -
On McEnroe-$267.64 with bookie X
On Borg- $232.36 with bookie Y
Total Investment $500-- (a)

Scenario I where McEnroe wins- Bet on McEnroe- 267.64

McEnroe @ 1.91 with bookie X= 267.64 x 1.91= 511.19
Total Investment (a) $500
Total revenue- 511.19 (b)
Net profit = (b) - (a)
= 511.19 - 500
= 11.19 (net profit)
Scenario II where Borg wins- Bet on Borg- 232.36

Borg @ 2.20 with bookie Y= 232.36 x 2.20= 511.19
Total Investment (a) $500
Total revenue- 511.19 (b)
Net profit = (b) - (a)
= (511.19 - 500)
= 11.19 (net profit)

Therefore, it does not matter who wins. The profit is assured.

Arbitrage sport betting although hyped as risk free is however not entirely free of risks. For one, the bookmakers have their odds balanced and if you back both sides with the same bookmaker you are sure to lose. Therefore, arbitrage will occur only when you place your bets with two different bookmakers who, for their own reasons, offer different odds for the same event. Then they may shorten their odds after a certain amount has been received against the bets and this will kill your chance of making a profit. Bookmakers also restrict the amount they accept from one person against a selection and even if you would like to put in a bigger amount against your bet, you may not be able to do so.