Arbitrage Betting vs Matched Betting: Exploring The Differences
Quick answer: arbitrage betting and Matched Betting both involve placing opposing bets on a single event, with the aim of coming out in profit. However, Matched Betting typically involves using a qualifying bet to unlock a reward such as a free bet, which then creates a profit, whereas arbitrage betting hinges on finding odds that allow for a profit to be locked in with a single bet.
With so many people looking to top up their income these days, it’s no surprise that side hustles have boomed in popularity. In 2026, almost half of Brits (46%) have a side hustle, making them an average of £201 a week.
But it can be difficult to find an additional source of income that works around a busy schedule and a family. So when people hear that it’s possible to safely make money from sports betting through smart betting strategies like Matched Betting and arbitrage betting, it’s no wonder that their ears prick up.
But how exactly do these strategies work, and what are the differences between them? What are the risks involved, and how much money can you really make?
In this article, we’ll explore the differences between arbitrage betting and Matched Betting, analysing each strategy’s advantages and disadvantages, to help you decide which is the better option for you.
What Is Arbitrage Betting?
Arbitrage betting operates on a pretty straightforward principle. You place opposing bets, either between a bookmaker and a betting exchange or between two bookmakers, whose favourable odds mean that no matter the outcome of the event, you’ll end up in profit.
An example of an arbitrage bet
To illustrate how this works in practice, we’ll consider an example arbitrage betting opportunity.
For an upcoming horse race, a sportsbook is offering odds on Horse A of 5.5 to win. You spot that a betting exchange, meanwhile, is offering lay odds on that horse of 4.9.
Because the back odds are higher than the lay odds, you know that you’re seeing a profitable arbitrage opportunity. You enter the details into an arbitrage calculator (or a Matched Betting calculator, which will give the same result), to check your ideal stakes for a £50 bet, and you get the following results:
As you can see, you’ll end up with a profit of £6.12 no matter whether your horse wins or loses the race.
What is Matched Betting?
For a full explanation of exactly how Matched Betting works, check out our detailed guide - but for now, we’ll give you a quick rundown.
Matched Betting operates on a very similar principle to arbitrage betting, in that again you place opposing bets on a single event, to produce the same result no matter the outcome of that event.
With Matched Betting, though, this is typically a two step process. First, you place what’s known as a ‘qualifying bet’, which you use to unlock a reward such as a free bet. You match this bet with a lay bet at a betting exchange, and you typically make a very small loss, known as a qualifying loss.
Then you repeat the process with the free bet you’ve unlocked, usually making a profit of 70-80% of the value of your free bet.
Data Insight:
The UK Gambling Commission found that 65% of gamblers received a gambling incentive in the previous 12 months, with 58% receiving free bets or free spins and 54% receiving sign-up offers, highlighting why Matched Betting revolves around promotional offers rather than odds alone.
An example of a matched bet
You see a sportsbook offering a bet & get offer: bet £10 to get a £10 free bet.
You use an Oddsmatcher (like Outplayed’s) to find a suitable qualifying bet with close odds - we usually try to keep the odds quite low for our qualifying bets, as this limits our qualifying loss.
The Oddsmatcher brings up an upcoming football match, with back odds of 2.1 with the sportsbook and lay odds of 2.15 at the betting exchange, making for a nice close match. You use a Matched Betting calculator to work out your ideal stakes, as shown below:
You place your bets accordingly, making a small qualifying loss of £0.24 on your qualifying bet. Once the event settles, you receive your £10 free bet from the bookie.
Once again, you use the Oddsmatcher to find a suitable matched bet. This time, you’re looking for higher odds to maximise your profit from the free bet. The Oddsmatcher brings up an upcoming horse race, where one horse has back odds of 8.5 and lay odds at the exchange of 8.8, making for a great profit potential.
Using the calculator to check your ideal stakes, you see the following:
You go ahead and place your bets accordingly. Once the race has concluded, no matter what happens you’ve made a profit of at least £8.52 from your free bet, meaning that the whole process has resulted in a profit of £8.28 when you take into account your initial qualifying loss.
What Are The Differences Between Matched Betting And Arbitrage Betting?
There’s a lot of overlap between Matched Betting and Arbitrage Betting, but there are a few crucial differences.
- Matched Betting profits come from a reward such as a free bet, whereas arbitrage betting locks in a small profit with every single bet
- Matched Betting is a two-step process, while an arbitrage bet is much quicker to place (once you’ve located a suitable match)
- Arbitrage bets usually involve smaller profits than matched bets
- Arbitrage betting can carry a higher risk of gubbing than Matched Betting
- Potential arbitrage bets can crop up all the time, and vanish just as quickly, whereas Matched Betting opportunities are more limited, but generally don’t require you to act quickly to take advantage of them
Data Insight
Research commissioned by the UK Gambling Commission found that 76% of people who received a gambling promotion went on to use it, with free bets among the most frequently used offers. This illustrates why promotional offers are so readily given out by bookmakers, allowing them to become the foundation of Matched Betting.
Advantages and disadvantages of Matched Betting and arbitrage betting
Matched Betting
| Advantages | Disadvantages |
|---|---|
| Significant profit potential | Limited by number of offers |
| Beginner-friendly | Slightly more complicated process |
| Relatively low likelihood of gubbing | |
| Usually no need to rush to snap up opportunities | |
| Minimal risk |
Arbitrage Betting
| Advantages | Disadvantages |
|---|---|
| Very quick process | Typically low profit per bet |
| No real limit to profit potential | Higher risk of gubbing |
| Can consistently build up small profits | Must act fast to avoid missing opportunities |
| Minimal risk |
Can I Make More Money With Arbitrage Betting Or Matched Betting?
It sounds like a simple question, but the answer isn’t necessarily a straightforward one. Apart from anything else, there’s considerable overlap between the two strategies - for example, making use of price boosts and laying them can form part of both an arbitrage betting strategy and a Matched Betting strategy.
That said, Matched Betting probably holds greater profit potential overall, especially early in your Matched Betting career when you’re mostly completing sign up offers.
On the other hand, arbitrage betting allows for steady long term accumulation of profits, even if the individual profits per bet aren’t all that large.
Expert Insight
Many newcomers focus on how much each individual bet makes, but experienced bettors pay closer attention to consistency. A strategy that reliably delivers smaller profits while avoiding costly mistakes will usually outperform one that relies on chasing the biggest opportunities.
Ultimately, though, there’s really no reason you have to pick just one or the other, which brings us on to…
Can I Combine Arbitrage Betting And Matched Betting?
Yes!
Combining the two methods is really the best way to maximise your profits. Given how much similarity there is between the two strategies, you’ll find that they fit very nicely together, with arbitrage betting providing a stable base of steady profits to tide you over between Matched Betting offers.
The main thing to be aware of is the risk of bookies catching on to what you’re up to. If you do nothing but take them up on offers and place arbitrage bets, they’re likely to respond swiftly by restricting your access to offers, restricting your stakes, or even banning you altogether.
For this reason, it’s wise to be canny about your betting. We have quite a few tips to help you avoid being gubbed, which are generally designed to help you blend in with regular bettors, but the most important when combining arbitrage betting and Matched Betting strategies are as follows:
- Mix in some mug bets, especially on popular markets, to look like a normal punter
- Avoid extremely obscure markets
- When Matched Betting, don’t always take the very best odds available - it can be wise to accept a slightly smaller profit in order to keep your accounts healthy for longer
- If you do find yourself restricted from making use of offers with a particular bookie, consider using that bookie specifically for arbitrage. As you’ve already lost access to it for Matched Betting, you have less to lose if the bookie takes further action
Expert Insight
One of the biggest misconceptions is that the best opportunity is always the one with the highest theoretical return. Consistently choosing bets that look more natural to a bookmaker can often preserve account longevity, leaving you with access to profitable opportunities for much longer.
Summary
Arbitrage betting and Matched Betting are generally considered to be two separate strategies. However, there’s tons of overlap between them, and they can work brilliantly together to make up a smart betting strategy with minimal risk.
And an Outplayed membership is the perfect tool to help you make the most of your strategy, whether you choose to focus on arbitrage betting or Matched Betting, or decide to combine the two.
Our essential Matched Betting and arbitrage tools, including the Oddsmatcher, Racing Catcher, and all our beginner-friendly guides, can be accessed with a Platinum membership.
Or, if you’re keen to take things to the next level, a Diamond membership gives you access to our more advanced arbitrage and Matched Betting tools, including Price Boost Tracker and Bet Builder Finder.
To find out more, take a look at the Outplayed Beginner’s Guide to Matched Betting, for all the information you need to get started.
Alternatively, if you’re ready to go, sign up for our trial to make your first profits absolutely free!
Sign up nowFAQs
1. What’s the difference between arbitrage betting and Matched Betting?
They’re very similar techniques, but arbitrage betting involves finding higher back odds than lay odds, allowing you to lock in a profit with a single bet. Matched Betting, meanwhile, uses a similar process to unlock a reward from a sportsbook, such as a free bet, which allows you to generate a profit.
2. How much risk is involved in arbitrage betting and Matched Betting?
The risk levels are very similar for these two techniques. In both cases, so long as you follow the instructions correctly, you shouldn’t be at risk of losing your money, because your stakes are calculated to produce the same result no matter the outcome of the event.
However, it is possible to make a mistake, and there is also a risk of sportsbooks catching on to what you’re doing and restricting or even banning your account.
3. Is arbitrage betting or Matched Betting a better side hustle?
They can both be very effective as side hustles - and the best part is, there’s no reason you have to choose! Combining the two allows you to reap the benefits of both techniques, and should help you grow your profits more rapidly than one strategy alone.
4. Are arbitrage betting and Matched Betting both legal?
Yes, both strategies are perfectly legal; all you’re doing is placing bets at the odds offered by the bookie.
Of course, that doesn’t mean a bookie will appreciate arbitrage bettors or matched bettors, as smart betting with minimal risk eats into their profits. But legally speaking, you’re in the clear.
5. What’s the best way to get started with arbitrage betting and Matched Betting?
With an Outplayed membership, of course! And you can get started for free with our trial, which gives you access to £800+ in potential profits. Sign up now to get started!
Updated: 17 Aug 2026
The Author
Stephanie is a published author and, having taken up Matched Betting fairly recently, she knows exactly how beginners feel when they first start Matched Betting. She loves breaking down complex subjects in straightforward terms to make them accessible to newcomers, and to speed them on their way to making their first profits.