Updated: 27.08.2025
It goes without saying that every single bettor wants to make money. While there's no such thing as certainty in betting, as there is in life, oddsmakers come as close as they can. Done correctly, it can guarantee you profits regardless of the actual outcome of a betting event.
In this article, we're going to tell you everything you need to know about arbitrage. We'll explain exactly what it is, how you can do it for yourself, and tell you about some of the best arbitrage betting sites out there right now.
A common financial practice, stock market arbitrage occurs when an investor buys an asset in one market and simultaneously sells it at a higher price in another market. The buying and selling prices are calculated in such a way that the investor makes a profit. Efficient strategies are often successful.
In arbing, which refers to arbitrage betting that has adopted this idea, a bettor places a bet on both sides of the same market. The bettor is assured of a return if the odds of the back bet exceed the odds of the lay bet. Careful analysis of the market can improve results.
If you want to participate in arbitrage, choose your arbitrage betting sites carefully. Ideally, although you can place the back bet with a bookmaker, you should place the lay bet with a betting exchange. This is essential as it will help you get the exact odds you need. Such attention to detail improves overall profit margins.
In arbitrage sports betting, you bet on both outcomes in a two-outcome market and are guaranteed to win one of your bets. Here's a quick and easy example to show you exactly how it works.
For example, in a match between Manchester United and Leeds United, you might like Man U to score a hatful of goals and therefore place a back bet on the Over 2.5 Goals market. You can then place another bet (with a betting exchange such as Betfair) against the same market. Let's say you have a £10 back bet at odds of 6/5 and a £11 lay bet at odds of evens. If Manchester United score 3 or more goals and your back bet wins, your return will be £22. Your actual profit can be calculated as £22 (win) - £10 (sportsbook bet) - £11 (exchange bet) = £1. In the second scenario, Manchester United score 2 goals or less, and you get a return of £22 if your lay bet wins. You can calculate your profit as £22 - £10 - £11 = £1 (minus the commission paid to the bookmaker).
As you can see, you will make a small profit regardless of the outcome. Keep in mind, however, that bookmakers charge between 2% and 5% commission on most successful bets, and you need to factor this into your calculations.
Not every sportsbook is suitable for arbitrage betting. These are the best bookmakers for arbing in the UK that will actually allow you to carry out the strategy successfully.
Founded in 2000, Betfair began as a betting exchange and later expanded to include a UKGC and MGA-licensed sportsbook. It has since grown to become the largest betting exchange in the world, and Betfair further enhanced its traditional bookmaking services when it merged with Paddy Power in 2016. Betfair is a punter-friendly outfit, offering hundreds of racing and football options every day. Live streaming and high betting limits also make for a superlative betting experience.
A relatively new entrant to the betting industry, Smarkets is a UK-based betting exchange and bookmaker that was founded in 2008. However, it has quickly gained a reputation as a reliable and trustworthy platform.
If you are looking for an arbitrage betting site, then Smarkets is a first class option. It even gives the market leader Betfair a run for its money as a betting exchange with a lower commission rate of 2%. In addition to a variety of sports, Smarkets also offers betting opportunities in politics and other diverse areas. Elsewhere, Smarkets is generally known to be very punter-friendly, with a minimum deposit limit of £10, excellent odds and fast withdrawal processing.
Founded in 2004 and licensed by the UKGC, Matchbook is a poker-friendly sportsbook that also offers a betting exchange, which really sets it apart from traditional bookmakers. Matchbook does not actually have the most extensive sportsbook, as its horse racing betting section - for example - is limited to races in Ireland and England. However, there is a £15 free bet welcome offer, and with a low commission rate of 1% - Matchbook compares favorably with larger betting exchanges such as Betdaq, Smarkets and Betfair.
Headquartered in Gibraltar, Betdaq was founded in 2000 and is the second largest betting exchange in the world, with a commission rate of 2%, which compares very favorably to Betfair's 5%. Betdaq offers free betting bonuses and has no maximum betting limits. For these reasons and more, fans of sports betting will love Betdaq; a site owned and operated by a company that is listed on the LSE.
As you can see from our example above, successful arbing will guarantee you at least some profit. One of the biggest challenges in executing this strategy is actually finding the arbing opportunities, and these are the three main ways you can do this.
Manual
Although it can be a lot of work, making it a less popular option, you can find arb betting opportunities manually (in other words, by doing your own research). Although this method may result in lower profits, we recommend that you try to find arb betting opportunities manually, at least in the early stages.
This can be a great part of your "training" in arb sports betting. Manually hunting for arb opportunities will allow you to get a good understanding of how betting sites work and how to spot a good opportunity. Best of all, since you won't technically know about any opportunities you miss, you won't feel any pressure to rush into any bets.
Arbing Software
After you have sufficiently understood the arbing betting process by manually hunting for arbing opportunities, you can try using software to detect them instead.
There are many free tools, as well as paid software, that allow you to compare the odds on various sporting events offered by numerous betting exchanges and bookmakers. These will alert you to potential betting opportunities, and many tools will also calculate the maximum possible profit percentage and how long you have to place the bet before the opportunity slips away.
Social Media
The final way to get help in your arbing sports betting activity is to become a member of one of many arbing forums or message boards, where you can get tips from other prospective arbers. Belonging to such platforms will also open the opportunity to join an arbing team, in which all members will benefit from the collective effort of hunting arbing opportunities, and even from the availability of additional funds and numerous betting accounts of the various members.
One of the most important resources for any successful arbitrageur is a reliable arbitrage calculator. In 2025, there are dozens of updated calculators and automated tools that make the process faster and more accurate. An arbitrage calculator works by showing you exactly how much to put on each side of a bet, ensuring a guaranteed profit regardless of the outcome. This eliminates the guesswork and reduces the risk of human error.
Modern odds calculators go far beyond simple odds distribution. Many premium platforms now offer real-time odds comparison across hundreds of bookmakers and betting exchanges. They also provide alerts when a profitable arbitrage opportunity arises. Some even integrate directly with betting accounts, allowing you to place your bets with one click without leaving the software. While free calculators are available, professional arbitrageurs often prefer paid tools because they provide faster odds updates and cover a wider range of markets.
In addition, some arbitrage software now includes AI-driven predictions to identify short-lived opportunities that can disappear in seconds. This can be the difference between catching an arb in time and missing it altogether. If you are serious about arbing, investing in quality calculators and automation tools is almost essential.
Arbitrage betting may seem simple, but many beginners make avoidable mistakes that cost them money. The most common mistake is failing to double check your calculations before placing a bet. Even a small mistake in the amount of the bet can turn a guaranteed profit into a loss. This is why it is so important to use a calculator and check every bet carefully.
Another common problem is underestimating bookmaker restrictions. Many sportsbooks actively monitor accounts for betting activity, and if they detect suspicious betting patterns, they may limit your stakes or even close your account. Beginners often start with the same bookmaker repeatedly, making it easy for the operator to notice unusual betting behavior. Experienced bettors spread their activity across multiple accounts and rotate strategies to stay under the radar.
Finally, timing is critical. Odds move quickly, and new players often fail to act quickly enough when an opportunity arises. By the time the bet is placed, one side of the arb may have already shifted, destroying the profit margin. To avoid this, beginners should practice with small stakes and gradually improve their reaction speed before risking larger amounts of money.
Arbitrage betting has been around for decades, but the landscape is constantly evolving. In 2025, the industry is being shaped by three main forces: automation, regulation, and market liquidity. As betting exchanges and bookmakers adopt more advanced technologies, the opportunities for arbitrage are rapidly changing.
A major trend is the rise of fully automated trading bots. These programs scan hundreds of markets simultaneously and automatically place bets within milliseconds of spotting a profitable opportunity. While bookmakers try to counter such software, exchanges often encourage it because it increases market liquidity. The future of arbing will likely involve more automation and AI-based systems that are difficult for humans to compete with manually.
Another development is increased regulation. Licensing bodies such as the UK Gambling Commission (UKGC) are paying more attention to fairness, transparency and privacy. While arbitrage betting remains legal, some jurisdictions may introduce new rules that affect the way arbitrage operators operate. At the same time, greater transparency in the calculation of odds could create additional opportunities for sharp bettors.
Finally, the global betting market is becoming more interconnected. With cross-border betting exchanges and crypto-based sportsbooks gaining popularity, liquidity is expanding, making it easier to find profitable arbitrages. As we move forward, arbitrage betting is likely to become more competitive, but also more sophisticated, rewarding those who adapt quickly to new technologies and market conditions.
Arbitrage sports betting has become increasingly popular among punters for several key reasons. Below, we have collected some of the most attractive features of this strategy.
By its very nature, arbing is almost completely risk free. However, there are a few disadvantages to this strategy that you should be aware of before committing to it.
Arbing can be done on most sports, but some are definitely more suitable than others. These are some of the best markets to target when getting started with arbitrage betting.
Which are the better arbitrage betting sites - bookmakers or betting exchanges? More and more arbitrage betting enthusiasts are turning to betting exchanges as a viable alternative to bookmakers because betting exchanges offer better (or at least more flexible) odds than bookmakers. This is because, unlike bookmakers, betting exchanges do not depend on betting odds for their income. They simply match punters with layers, or in other words, those who bet on odds with those who offer the odds.
Betting exchanges earn revenue by charging a commission, typically 2-5%, on the winnings of their users. Bookmakers, on the other hand, build their profit margins into the odds they offer their customers, which effectively means that the odds offered by a bookmaker do not reflect the true probability of an event.
Higher odds are a clear advantage that bettors enjoy at an exchange. However, there are also some disadvantages.
The punter at a betting exchange can guarantee a profit by trading the market (in other words, placing a bet when the price is lower than when the punter placed the bet, or vice versa). However, the amount you can bet on a betting exchange depends on how liquid the market is. You cannot expect to make a greater return than the amount another punter is willing to risk. So you may have to accept a lower return unless you are prepared to wait for someone else to offer the same bet (at similar odds).
Arbing may sound pretty straightforward, but there are definitely things you can do to improve your odds. These are our top tips for improving your arbing betting experience and earning bigger winnings:
As we have shown, arb betting guarantees profits regardless of the outcome of betting events. Although the margins are small, arb betting - if done correctly - can provide steady returns over a long period of time. It requires a great deal of concentration and patience, but it will eventually pay off.
You can start your arbing adventure by identifying opportunities manually and then graduate to using software tools as you learn more. An important first step is to identify the best bookmakers for arbing, and you will also find that betting exchanges are very useful in this strategy. Arb betting carries its own risks - as mentioned above - but when done correctly, it can be a fun and lucrative strategy.
No. Arbitrage betting is not illegal, although bookmakers are against it and will limit (or even close) your account if they suspect arbing activity. One of the best proofs that arbing is not illegal is the existence of numerous software tools designed to help arbitrage betting. Such tools would not be publicly available if arbing were considered illegal.
The best bookmakers for arbitrage betting are betting exchanges that also offer a sportsbook section. These include Betfair, Betdaq, Smarkets and Matchbook.
Betting exchanges not only allow arbing, but actually encourage it, as arbing activity improves the liquidity of their platform. Bookmakers, however, frown upon arbing activity, as arbers who back good odds attempt to reverse the bookmakers' strategies of laying bad odds.
Arbing is possible whenever and wherever betting takes place. Betting odds are dynamic and constantly changing. Even when bookmakers try to move odds in unison, there will always be some bookmakers who lag behind and do not change odds as quickly as others, creating arbing opportunities for players to exploit.
