Arbitage Betting Definition

Arbitage betting refers to opportunity betting in which punters guarantee a “sure bet” by betting on a game at two or more bookmakers. Since it is well known that bookmakers each have unique odds, it is possible to bet on one competitor at bookmaker A and bet on the second competitor at bookmaker B (or bring in a third bookmaker to cover the draw).

Example

In simple terms it’s possible to use a tennis match as an example. At the first bookmaker the odds for player 1 are 2.05 and 1.90 for player 2. At the second bookmaker the odds for player 1 are 1.90 and 2.05 for player 2. By putting $100 on player 1 at the first bookmaker and $100 on player 2 at the second bookmaker, it is possible to guarantee a profit of $5 regardless of the outcome.

Arbitage Betting Pros and Cons
Pros
  • It is possible to often create as close to a “sure bet” as possible which is unheard of in the world of gambling.
  • Over time little wins can amount to a significant profit.
Cons
  • Some bookmakers might be aware of arbitrage betting and can limit your stake without warning. It’s usually wise to use a bookmaker for one bet and a betting exchange like Betfair for the other to prevent being caught.
  • Unforeseen events such as rioting fans or bad weather could result in one bookmaker taking the bet so make sure to know the bookmakers rules.