What Is Sports Betting Arbitrage? How Arbitrage Betting Works
Sports betting arbitrage, often called arbing, involves placing bets on different outcomes at different sportsbooks when the available odds allow the combined positions to produce a positive mathematical return.
An arbitrage calculator can help determine whether a group of odds creates an arbitrage opportunity and how to distribute a total stake between the outcomes.
How Arbitrage Betting Works
Arbitrage calculations are based on the implied probabilities of the available odds.
For decimal odds, the implied probability can be calculated as:
Implied probability = 1 ÷ decimal odds
For a two-outcome market, if the combined implied probabilities are below 100%, the prices mathematically create an arbitrage opportunity.
Simple Example
Imagine one sportsbook offers decimal odds of 2.10 on Outcome A while another offers 2.10 on Outcome B.
The implied probabilities are:
- 1 ÷ 2.10 = approximately 47.62%
- 1 ÷ 2.10 = approximately 47.62%
Combined, they equal approximately 95.24%.
Because this is below 100%, the prices mathematically represent an arbitrage situation, assuming the market rules and outcomes cover all relevant possibilities.
How to Calculate Arbitrage Stakes
The total amount you want to invest can be distributed between the available outcomes according to their odds and implied probabilities.
The goal of the calculation is to determine the stake for each outcome so that the resulting returns are as close as possible across the outcomes.
Things to Check Before Arbitrage Betting
- Make sure the odds are still available.
- Check that the markets have identical rules.
- Check minimum and maximum stake limits.
- Consider commission, fees, and transaction costs.
- Confirm that all possible outcomes are covered.
Why Use an Arbitrage Calculator?
An arbitrage calculator makes it easier to check odds from multiple sportsbooks and calculate the required stake for each outcome. It can also show the potential return and mathematical arbitrage percentage.