Arbitrage Betting Explained: Legality, Tips, and More

Arbitrage betting has exploded in popularity, but many are still wondering if it is safe and worth their investment. In this arb betting guide, we’ll cover all you need to know about this form of gambling. 

Before you determine whether or not you want to start arbitrage betting, it is vital you have a clear understanding of what it is. So, what is arbitrage betting?

Arbitrage betting is a form of wagering that guarantees a payout to gamblers by exploiting differences between the odds on different Canadian betting sites.

Arbitrage betting in Canada involves finding two different bookmakers with elevated odds on the two possible outcomes of a sporting event, each having higher odds on a different outcome.

Gamblers would then bet on both potential outcomes, and due to the discrepancies between the odds on the sports betting sites, they would be quite literally guaranteed a profit.

Arbitrage betting may sound a little confusing and perhaps even too good to be true. But in practice, arb betting is less complicated than you think, and it is very much a real thing that many bettors have made thousands of dollars off of.

To help clarify what this might look like, let’s take a look at an example.

Let's say Sportsbook A has listed the Philadelphia Eagles vs. Washington Commanders Game as such:

	Philadelphia -133
	Washington +105

Sportsbook B takes a different stance, listing:

	Philadelphia  +105
	Washington -133

A smart bettor who managed to find both of these odds online would not that by betting on Washington on Sportsbook A and Philadelphia on Sportsbook B, they are guaranteed a profit if they bet the right amount on both sportsbooks.

Essentially, arbitrage bets are wagers that secure a guaranteed payout for gamblers by betting on multiple sportsbooks with different odds to exploit the key differences between the two. It is primarily used for moneyline wagers.

The big question gamblers likely have is, is arbitrage betting legal? The answer to this is yes. If betting is legal in the region that you come from, then arbitrage betting is legal as well.

So, to answer the question, yes, arbitrage betting in Canada is allowed, but there are some caveats to be aware of.

For obvious reasons, sports betting companies do not like arbitrage betting. Their business models are built on gamblers taking risks with their money, which results in payouts to the sportsbook. With arb betting, there is no risk. If every bettor only used arbitrage, then there would be no profit for bookmakers, and the sports betting industry would not exist.

Sportsbooks take significant steps to prevent users from arbitrage betting. They employ advanced detection technology to try and determine whether users are arbitrage betting on their websites.

If a user is caught, it is likely that their account will be suspended or even banned. Most betting sites will have this in their terms and conditions.

To explain the situation in a condense way, there is nothing illegal about arbitrage betting, as long as gambling is allowed where you are wagering from. However, betting sites are not fond of arb gambling, and will take steps to prevent it.

Bettors who discover arbitrage wagering may think it is perfect and the cure to all their financial worries. However, nothing is perfect. There are both pros and cons to arb betting. Let's analyze the upsides and downsides of this form of wagering. 

The biggest problem the average gambler finds with arbitrage betting is the difficulty that comes with finding arb betting options. It is not easy for the average person to scour websites and find two odds that work for arbitrage.

Arbitrage betting needs to be done quickly, as a lot of the times, sportsbook will close these loopholes when they can.

What many bettors elect to do is purchase arb spotting software that combs the web for you, finding potential arbitrage options. This will require an upfront investment. Software have been known to even beat some of the sharpest sportsbooks out there, like Pinnacle, for example.

Another option is subscribing to an online database that will offer up info on arbitrage bets, but this also typically will come with an associated price.

It can be tricky, but the Internet is a vast place, and there are plenty of resources out there

Terminology to be Aware Of

When arbitrage betting, there are a lot of terms that might crop up that would be confusing to the average gambler. Below, we'll define a couple of key arbitrage betting terms.

• Arbing: When someone bets both sides of two different odds pairings.
• Odds: The different lines sportsbooks offer on an outcome.
• Moneyline: a wager on the final outcome of a game.
• Implied Probability: The overall likelihood of an outcome based on the odds.

We’ve explained what arbitrage betting is, and hopefully given you a sense of why this might be a valuable tool to start making some money. But how would one make an arbitrage bet?

There are several important steps that gamblers should take when making their arbitrage bet. Below, we’ll give you some steps on how you can start arbitrage betting.

• Step One: Account Creation. If you want to start arbing, then you are going to need to have betting accounts set up, and not just one. Bettors will need multiple accounts because arbitrage requires multiple sportsbooks.
• Step Two: Finding the Arbitrage. Before you can wager, you need to find the arbitrage that you intend to bet. This is the most difficult part. There are several tools gamblers can use, like arbitrage betting software, odds comparison websites, arbitrage calculators, and more. These will help you find arbitrage opportunities.
• Step Three: Placing Your Bet. With arbitrage betting, gamblers need to be very careful about how much they wager. For an arbitrage bet to be profitable, there needs to be the right amount wagered. The tool you are going to want to use for this is an arbitrage calculator, which will inform you how much to bet on each line in order for your bet to be profitable.
• Step Four: Rinse and Repeat. Arbitrage wagering is not something that will yield a massive payout if you do it just once. It is something that needs to be done consistently over a long period of time to actually make it worth your while. So, continue to look for opportunities and use online resources.

There are a lot of different terms that circulate around the Internet that entice gamblers. Matched betting is one form of wagering that often comes up in the same breath as arbitrage betting. While both are highly useful forms of gambling, and can yield payouts, they are actually quite different.

We have given you quite an extensive rundown on what arb betting is, so we won’t waste your time on that. But what is matched betting?

Matched betting is essentially utilizing the free bet bonus offers that many sportsbooks offer to make risk-free bets by betting against that outcome on a different website.

Let's say you received a $10 free bet on Sportsbook A. You then placed that bet on the Blue Jays, who were playing the Red Sox. On Sportsbook B, you put a bet on the Red Sox of x amount of money, calculated to guarantee profit. Then, regardless of the outcome, you are guaranteed a return.

So, the core difference between arbitrage betting and matched betting comes from where the money being bet comes from.

With arbitrage betting, gamblers are laying their own money down on both sides of the wager. With matched betting, they are using a free bet offer from a sportsbook for one part of the bet.

Arbitrage betting can certainly be confusing, and it is only natural that bettors might have some questions about it. At BettingTop10, we are here to help, so below are answers to some of the most frequently asked questions about arbitrage betting.

Arbitrage betting has become a popular online conversation point as a great way to make additional money online. There is no question that this form of wagering can help fill your pockets. However, like with all things gambling-related, exercise caution and learn the facts. But if done properly, arbitrage betting is a great part of the sports bettor's gambling toolbox.