Arbitrage betting guarantees profit by placing bets on all outcomes at combined odds that exceed 100% probability. Here's the definition and how it works.
Arbitrage betting (or "arbing") means placing bets on all possible outcomes of an event at odds that guarantee a profit regardless of the result. The opportunity exists when two or more sportsbooks price the same event differently, creating a combined implied probability below 100%.
Convert each side's odds to implied probability:
When the total is below 100%, an arb exists. The margin (100% − 95.3% = 4.7%) represents your guaranteed profit.
Hedging uses a bonus bet as the edge — one side costs nothing, creating asymmetric profit. Arbitrage uses price discrepancies between sportsbooks — both sides are cash bets, and the edge comes from the pricing gap.
| Hedging | Arbitrage | |
|---|---|---|
| Edge source | Bonus bet | Price discrepancy |
| Cash at risk | One side | Both sides |
| Requires bonus | Yes | No |
| Typical margin | 65–80% of bonus | 1–5% of total stake |
Arb windows close fast — sportsbooks adjust to correct pricing gaps, often within minutes. Successful arbers use dedicated tools (OddsJam, RebelBetting) to find opportunities in real time.
Sportsbooks also identify and restrict arb accounts aggressively, since arbers extract money regardless of outcome — that's a structural drain on the book.
For the full arbitrage and advanced hedging framework, read our advanced hedging strategies guide.
This is part of our complete guide. Read the full breakdown for the complete strategy.
Read: Advanced Hedging Strategies for Sports Bettors →