In recent years, the popularity of online sports betting has surged, particularly following the 2018 U.S. Supreme Court ruling that overturned a 1992 federal law.
This decision allowed states to establish their own sports gambling regulations, leading to the rapid growth of profit-generating strategies like arbitrage betting.
This guide will cover everything you need to know about arbitrage betting, including its legality, benefits, and how to get started.
What is Arbitrage Betting?
Arbitrage betting is legal in jurisdictions where sports betting is permitted. Since it involves placing bets with licensed sportsbooks, no laws explicitly prohibit the practice.
However, sportsbooks disapprove of arbing as it disrupts their profit margins.
Many bookmakers monitor accounts for suspicious betting patterns and may impose restrictions or bans on those engaged in arbitrage betting.
Real-World Example of an Arbitrage Bet
To illustrate how arbitrage betting works, let’s consider a hypothetical soccer match between Team A and Team B with odds from two different sportsbooks:
- Bookmaker 1 offers odds of 2.10 for Team A to win.
- Bookmaker 2 offers odds of 2.05 for Team B to win.
Using an arbitrage calculator, you determine the correct stake to place on each outcome to ensure a profit regardless of the match result. Suppose you have a total bankroll of $1,000:
- You bet $487.80 on Team A at 2.10 (potential return: $1,024.38)
- You bet $512.20 on Team B at 2.05 (potential return: $1,048.01)
No matter which team wins, your total return will always be greater than your combined stake, guaranteeing a small but risk-free profit. This demonstrates how arbitrage betting takes advantage of odds discrepancies across sportsbooks.
Is Arbitrage Betting Legal?
Arbitrage betting is generally legal as it involves placing bets with licensed sportsbooks. However, while no laws explicitly prohibit arbing, bookmakers strongly disapprove of this practice. Many betting platforms have measures in place to detect arbitrage bettors, and if caught, users may face stake restrictions or even account suspension.
Legality of Arbitrage Betting in the US?
In the United States, arbitrage betting is legal as long as it takes place within states where sports betting is allowed.
Since arbing is a strategy rather than a separate form of gambling, it falls under the same legal framework as traditional sports betting. However, state regulations vary, so it’s essential to check local laws before engaging in arbitrage betting.
Why Do Bookmakers Oppose Arbitrage Betting?
Sportsbooks rely on odds balancing to ensure profitability, aiming to receive bets on both sides of a wager. Arbitrage betting disrupts this equilibrium, allowing bettors to secure profits without taking real risks. Since this goes against the bookmakers’ business model, they actively monitor betting patterns to identify and restrict accounts suspected of arbing.
Common Misconceptions About Arbitrage Betting
Despite being a proven method for guaranteed profits, many misconceptions prevent people from taking advantage of arbitrage betting. Here are some of the most common myths debunked:
- Myth: Arbitrage Betting is Illegal
Reality: Arbitrage betting is legal in jurisdictions where sports betting is permitted. - Myth: Guaranteed Profit Means Huge Profit
Reality: While profits are assured, they tend to be small—typically between 1% and 5% per bet. However, consistent betting can lead to steady earnings over time. - Myth: Arbitrage Betting is Only for Experts
Reality: Arbing requires no expert knowledge of sports. The key skill is identifying odds discrepancies and placing timely bets across multiple platforms. - Myth: Arbitrage Betting is Complicated
Reality: With the right tools, such as arbitrage calculators and betting software, even beginners can participate effectively. - Myth: All Arbitrage Opportunities are Easy to Spot
Reality: Many arbitrage opportunities are subtle and short-lived. Using software tools like Dutch Matchers can help identify these hidden chances.
Potential Risks of Arbitrage Betting
Although arbitrage betting theoretically guarantees profits, several practical risks can affect success:
- Human error – Miscalculating odds or placing incorrect bets can result in losses.
- Account limitations – Many bookmakers impose bet limits or ban accounts engaged in arbitrage.
- Fluctuating odds – Odds can change rapidly, eliminating the arbitrage opportunity before all bets are placed.
- Liquidity issues – Some betting markets may not have enough liquidity to match large stakes, limiting profitability.
By approaching arbitrage betting strategically and cautiously, bettors can increase their chances of success while minimizing potential risks.
Benefits of Arbitrage Betting
Engaging in arbitrage betting comes with several advantages, making it an appealing strategy for bettors looking for low-risk profits:
- Guaranteed Profits: Since arbitrage betting covers all outcomes, you are ensured a profit regardless of the event’s result.
- Risk-Free Betting: By placing opposing bets on different sportsbooks, you eliminate the risk of losing your stake.
- Consistent Returns: Arbitrage betting provides a stable income over time with strategic execution.
- No Sports Knowledge Required: Unlike traditional betting, arbing does not depend on predicting match results, making it accessible to anyone.
Tips for Safely Engaging in Arbitrage Betting
If you want to maximize your chances of successfully using arbitrage betting while avoiding detection, follow these best practices:
- Use multiple sportsbooks – Spreading bets across different betting sites minimizes the risk of detection.
- Stay discreet – Avoid placing bets in round figures, as this can signal arbitrage activity to bookmakers.
- Keep detailed records – Organize your bets and transactions carefully to track your profits and avoid mistakes.
- Understand sportsbook policies – Familiarize yourself with the terms and conditions of each betting platform to prevent account restrictions.
How to Get Started with Arbitrage Betting
Starting with arbitrage betting is easier than many people think, especially with the right tools at your disposal. Platforms like ProfitDuel provide bettors with resources such as Dutch Matchers and Arbitrage Calculators to help identify profitable betting opportunities.
Additionally, matched betting—another profitable strategy—can be used alongside arbitrage betting. Matched betting allows you to leverage free bet offers and promotions from sportsbooks to secure risk-free profits, making it another excellent way to generate steady income.
Conclusion
Arbitrage betting is a powerful strategy that allows bettors to secure guaranteed profits by taking advantage of odds discrepancies across sportsbooks. While it requires careful execution and awareness of bookmaker restrictions, the right approach can make it a sustainable, low-risk betting method.
If you’re interested in getting started with arbitrage betting, consider using tools like ProfitDuel, OddsJam, and RebelBetting to identify profitable opportunities quickly and efficiently.
These platforms offer arbitrage calculators, real-time odds tracking, and betting strategy guides to help both beginners and experienced bettors maximize their earnings.
Start small, stay disciplined, and always use multiple sportsbooks to avoid detection—over time, you can build a consistent source of profit through smart, strategic betting.
FAQs
Q1: Is arbitrage betting considered illegal gambling?
A1: No, arbitrage betting is not a separate form of gambling. It is a strategy used within legal sports betting markets, making it completely legal in states where sports betting is allowed.
Q2: Can sportsbooks ban me for arbitrage betting?
A2: While arbitrage betting is legal, some sportsbooks may limit or ban accounts that engage in frequent arbing since it reduces their profit margins. It’s advisable to use multiple sportsbooks to avoid detection.
Q3: Do all states allow arbitrage betting?
A3: Arbitrage betting is allowed wherever sports betting is legal. However, because betting regulations vary by state, always check your state’s laws before placing bets.
Q4: Can I use arbitrage betting on all sportsbooks?
A4: Not all sportsbooks have odds discrepancies that create arbitrage opportunities. Using multiple sportsbooks and tools like arbitrage calculators can help find profitable bets.
Q5: Do I need to pay taxes on arbitrage betting profits?
A5: Yes, sports betting winnings, including arbitrage profits, are taxable in the U.S. Be sure to report earnings to comply with tax laws.
