How To Get Started With Arbitrage Betting

Quick answer: the very best way to get started with arbitrage betting is with a platform like Outplayed, whose tools and expert support can help you locate good arbing opportunities while avoiding costly errors.

Arbitrage betting is one of those techniques that at first sounds too good to be true.

The vast majority of sports bettors lose money on average - research by the Gambling Commission found that 72.54% of active gambling accounts were in a net loss position - so the idea of a strategy that can lock in a profit with every bet is one that will inspire both keen interest and great scepticism.

Arbitrage betting really can work as a betting strategy, though, and has the potential to build you good profits in the long term. You don’t even need any experience of sports betting, and it’s easy for beginners to get to grips with.

But how exactly do you get started with arbitrage betting? In this article, we’ll take you through exactly what you need to do to place your first arbitrage bets, as well as talking you through the risks you should be aware of when starting arbitrage betting.

How Does Arbitrage Betting Work?

If you’re reading this article, you probably already know how arbitrage betting works, so we’ll just give you a quick reminder here. However, if you’re new to the idea of arbitrage betting and want to know more, you can take a look at our full guide to arbitrage betting for all the detail.

In a nutshell, arbitrage betting involves covering two or more outcomes within a single event, at odds favourable enough that you emerge with a profit no matter the outcome of that event.

In the UK, the most common form of arbitrage is bookmaker-exchange betting, where you place a back bet (for a certain outcome) with a bookie, and a lay bet (against the same outcome) with a betting exchange. If the back odds are higher than the lay odds, you’ll come out in profit no matter what happens.

It’s also possible to arbitrage bet using the bookmaker-bookmaker model, where your opposing bets are placed between different bookies. This is easiest with sports like tennis, where you can place one bet on each player to win, but it is possible to execute three-way arbitrage bets (to cover all outcomes in sports like football), or in theory even more. It can be more difficult to locate good bookmaker-bookmaker arbing opportunities, though, which is why this model is less popular than bookmaker-exchange arbitrage.

Data Insight

In the latest Gambling Survey for Great Britain, 47% of adults had gambled in the previous four weeks, while 8% had placed bets on sports or other events. This highlights how widespread betting activity is, making disciplined strategies increasingly important for those looking to gain an edge.

- Gambling Commission

In theory, exchange-exchange arbitrage is also possible, and it can be very tempting to a lot of new arbitrage bettors. We strongly recommend steering clear of this model of arbitrage, however, as betting exchanges, who are generally very happy with normal bookmaker-exchange arbitrage bets, take a dim view of exchange-exchange arbers and are liable to restrict your account or even ban you.

How Do You Get Started With Arbitrage Betting?

If you’re nervous about getting started with arbitrage, don’t worry! It’s really very straightforward. Just complete the following steps.

1. Sign up to bookmakers and at least one betting exchange

In theory, you could wait until you find a good arbitrage bet to sign up to a bookmaker, but there’s a relatively high chance that by the time you’ve completed the sign up process and made your first deposit, your arbitrage opportunity will have vanished.

If you sign up in advance, ideally making profits from sign up offers using Matched Betting techniques, you’ll be ready to go as soon as you come across one. You’ll then naturally sign up to betting exchanges such as Matchbook and Smarkets as you go, and will therefore have accounts with them ready and waiting for your first arbitrage bet.

Expert Insight

One habit that separates successful beginners from frustrated ones is keeping sufficient funds spread across several bookmakers and an exchange. Having to move money between accounts while an opportunity is live is often what turns a profitable arbitrage into a missed opportunity.

2. Search for arbitrage opportunities

If you’re arbitrage betting on your own, this will be the hardest and most time-consuming stage of the process. You’ll need to scour bookmakers and exchanges for suitably high odds, and hope that your opportunity lasts long enough for you to get your back and lay bets in.

But with an Outplayed membership, this process becomes a breeze. Our Oddsmatcher tracks down the best odds matches out there, including arbitrage opportunities - just look for matches with a rating of 100% or over, as shown in the screenshot below.

3. Work out your stakes

Having found an arbitrage opportunity, you need to work out the optimal stakes to place on each side of your bet, making sure to take into account the amount of liquidity available at the betting exchange.

This requires a fair bit of maths if you’re arbitrage betting on your own. But if you’ve got an Outplayed membership and you’re using the Oddsmatcher, you can simply click the calculator link on the left hand side of the page to instantly calculate and adjust your stakes, as shown in the example below.

4. Place your back bet

Having worked out your stakes, you need to place your back bet with the bookmaker. Navigate to the correct market (if you’re using the Outplayed Oddsmatcher, simply click the integrated link to go to the right market), choose the appropriate selection, enter your stake, and place your bet.

5. Place your lay bet

Now, navigate to the relevant market on the betting exchange to place your lay bet, making sure to select the lay odds rather than the back odds. Again, Outplayed members can click the link on the Oddsmatcher to go directly to the appropriate market with the betting exchange, or even just use the ‘place lay bet’ button to automatically place their lay bet if they’ve connected their betting exchange account to their Outplayed account.

6. Wait for your bets to settle

Now there’s nothing left to do but wait! Feel free to watch the match or race, but don’t worry if you’d rather not; no matter what happens, you’ll come out in profit.

7. Profit!

Once your bets have settled, it’s time to collect your profits! Withdraw your winnings from the bookmaker or exchange, or, if you plan to place more bets soon, leave some or all of the funds in place for your next arbitrage bet.

What Risks And Pitfalls Does A Beginner Arbitrage Bettor Need To Know About?

Arbitrage betting is often considered a ‘risk-free’ betting strategy. While that’s true in some respects, because once your bets are both placed you’ll end up with a profit regardless of the result of the event (so long as you’ve got your maths right), it’s not quite fair to say that an arbitrage betting strategy holds no risks at all.

Below are the main risks that a beginner arber may encounter.

• Palpable errors (aka ‘palps’). A palpable error means an error with the bookmaker’s software causing the odds to be obviously incorrect. If this is the case, a bookmaker may void your bet, so this is an important factor to be aware of. We recommend avoiding arbitrage bets with a rating of 110% or more, as there’s a good chance a palp is the cause of the favourable odds.

• Human error. Simple mistakes are the most common cause of problems with arbitrage bets. You need to make sure you’ve identified the correct markets for both your back and lay bets, and accurately calculated your stakes for each. It’s safest to use an arbitrage or Matched Betting calculator to work out your stakes, to avoid any maths errors that could lose you money.

• Limited liquidity. It’s crucial to always check the amount of available liquidity at the betting exchange for your lay bet. If the odds at the exchange are unusually low, it’s quite possible that there won’t be much available liquidity, limiting how much you can stake. Double check the available liquidity immediately before placing your back bet to limit the risk of there being insufficient availability when you’re ready to place your lay bet.

Data Insight

Researchers analysing more than 1.8 million bookmaker and betting exchange odds found that bookmakers offered higher bettor returns than betting exchanges when exchange liquidity was low. The finding demonstrates how market liquidity directly affects the quality and profitability of betting opportunities.

- Elsevier (The Quarterly Review of Economics and Finance)

• Bookmaker restrictions. Any successful sports bettor is liable to experience their account being restricted by a bookie at some point (aka being ‘gubbed’), but arbitrage bettors are even more likely to encounter this problem. Because arbing inherently involves finding and taking disproportionately favourable odds, it isn’t all that difficult for bookies to detect in many cases. You should therefore make every effort to blend in - perhaps by placing some matched bets that won’t turn a profit, and betting on popular events as far as possible - to limit the risk of the bookie placing restrictions on your account.

• Rapid odds changes. This one can be particularly frustrating, but it’s to be expected when arbitrage betting, which often relies on bookies being a bit late to update their odds. It’s not uncommon to find an arbitrage opportunity, enter all the details into an arbitrage calculator to work out your optimal stakes, and then find that either the back or the lay odds have changed by the time you go to place your bets. Worse, occasionally the lay odds may change when you’ve already placed your back bet. You can mitigate this risk by avoiding betting in-play on sports like football, and betting at least an hour or two before the start of a race in horse racing, which should keep the impact of rapidly fluctuating odds to a minimum.

Expert Insight

Many newcomers assume every arbitrage is worth chasing, but experienced bettors are selective. Passing on a marginal opportunity because the market looks unstable or liquidity is disappearing is often the smarter long-term decision than forcing a trade under pressure.

• Rushing. It’s understandable that you might end up rushing when arbing, given the risks of limited liquidity and rapid odds changes, both of which mean you may have to move fast to snag an arbing opportunity. However, the risks of messing up due to rushing are more significant than the risk of missing out on an arb because you took an extra few seconds to double check your figures. You should therefore always make certain you’ve got your maths right before you place your bets.

Summary

Are There Any Other Strategies You Can Combine With Arbitrage To Make More Money?

Arbitrage betting is fantastic for generating small, consistent profits at very low risk, but it’s most effective when used alongside other strategies. By diversifying your techniques, you’re able to enjoy the best of all worlds, while balancing the risks and downsides of each strategy.

Matched Betting

Combining arbitrage betting with Matched Betting is perhaps the very best way to maximise your profits. Matched Betting usually produces higher profits per bet, especially in the early stages when you’re completing predominantly sign up offers, which build your bankroll more quickly.

There’s a finite limit to the number of offers you can complete when Matched Betting, though. Throwing a spot of arbitrage into the mix will help tide you over when there are fewer offers available from bookies (e.g. during the football off-season).

Between arbitrage betting and Matched Betting, you’re likely to find you make higher profits more consistently than with either strategy alone.

To find out more about how Matched Betting works and how you can get started, check out the Outplayed Beginner’s Guide.

Value Betting

Value Betting is a more advanced strategy than arbitrage betting or Matched Betting, and it does involve risking some of your bankroll with every bet. For this reason, we recommend that you gain significant experience in arbitrage betting or Matched Betting before you embark on Value Betting, as well as accumulating a good bankroll (at least £1000).

If you’re already an experienced sports bettor, matched bettor or arbitrage bettor, though, with a good bankroll built up, Value Betting can provide a massive boost to your profits. It relies on a similar principle to arbitrage betting - that of locating favourable odds from bookies. Specifically, odds that are higher than the true probability of a win would imply.

By betting exclusively on selections with disproportionately favourable odds, you’re statistically likely to end up profiting overall, even though you aren’t locking in a profit on any individual bet.

To find out more about how Value Betting works and how you can get started, check out the dedicated Outplayed guide.

Summary

Summary

Getting started with arbitrage betting may feel a bit overwhelming if you’re new to sports betting, but with the right tools and support to hand it can be a super straightforward process.

And an Outplayed membership is just the partner a beginner arbitrage bettor needs to get their arbing off to a good start. With market-leading tools, clear guides, and expert support on hand, we’ve got all the ingredients you need for successful arbitrage betting.

To truly maximise your profits, of course, we recommend combining arbing with Matched Betting if you’re a newcomer to sports betting, and potentially Value Betting if you’re already an experienced bettor with a good bankroll. No matter which strategy you choose, Outplayed’s tools will make it quick and easy to place your bets and generate the very best profits possible.

To find out more, check out the Outplayed Beginner’s Guide to Matched Betting for all the information you need to get started.

Alternatively, if you’re ready to dive right in, sign up for the Outplayed free trial to get immediate access to the Oddsmatcher, plus beginner’s guides to over 40 different bookmaker offers with the potential to make you £800+ in profit.

FAQs

1. Can I get started with arbitrage betting on my own?

You can, by manually searching bookmakers and betting exchanges for favourable odds in the hope of spotting an arbitrage opportunity. However, you’ll find it much easier and quicker with dedicated tools and support from a platform like Outplayed.

2. How can Outplayed’s tools and support help with arbitrage betting?

Outplayed has a wide range of tools designed to make Matched Betting, Value Betting and arbitrage betting as easy and as profitable as possible. Our Oddsmatcher and Price Boost Tracker will be the most helpful tools for arbitrage bettors, and our experts are on hand if ever you need help or advice.

3. How much money can I make with arbitrage betting?

That largely depends on how much time you put into it - the more time and effort you devote to arbing, the more you’re likely to make. That said, profits from individual arbitrage bets are usually quite small, which is why we recommend combining arbitrage with other betting strategies, like Matched Betting, or Value Betting for more advanced bettors.

4. Is arbitrage betting legal?

Yes, arbitrage betting is completely legal. Bookmakers don’t appreciate arbitrage bettors, because they stand to make less profit from bettors who arb, but from a legal standpoint there’s no problem at all with arbing.

5. Can I try Outplayed’s arbitrage betting tools for free?

You can! Our free trial is designed to walk beginners through Matched Betting for the first time, but if you’re more interested in arbitrage there’s nothing to stop you from using the Oddsmatcher to find arb bets. Of course, if you’ve taken out the free trial, you might as well give our introductory Matched Betting sign up offers a go as well, to make the greatest possible profit from your trial.