Introduction
Sportsbooks sometimes disagree on odds—and when they do, it creates a golden opportunity called arbitrage betting. This strategy allows you to cover all possible outcomes of an event at different sportsbooks and guarantee a profit, no matter who wins.
Arbitrage betting applies principles from financial arbitrage theory.
The OddsTide Arbitrage Tool is designed to make finding and executing these plays quick, accurate, and simple. By entering a single stake amount, you’ll instantly see the optimal bet sizes for each outcome and the sportsbook offering the best odds.
What is Arbitrage Betting?
Arbitrage betting (often called "arbing") takes advantage of odds discrepancies between sportsbooks. When combined correctly, these differing odds allow you to bet on every possible result and walk away with a profit regardless of the outcome.
The Mathematics of Arbitrage
How to identify an arbitrage opportunity:
- Convert odds to implied probabilities
- Add the probabilities together
- If the sum is less than 100%, you have an arbitrage opportunity
Example:
- Book A: Team X at +120 (implied probability: 45.45%)
- Book B: Team Y at +130 (implied probability: 43.48%)
- Total implied probability: 45.45% + 43.48% = 88.93%
Since this is less than 100%, there's an 11.07% profit margin available.
Stake Distribution Formula
For two-outcome markets:
- Stake on Outcome 1 = (Total Stake × Implied Prob 2) / (Implied Prob 1 + Implied Prob 2)
- Stake on Outcome 2 = (Total Stake × Implied Prob 1) / (Implied Prob 1 + Implied Prob 2)
Using our example with $1,000 total stake:
- Bet on Team X: $1,000 × 43.48% / 88.93% = $488.98
- Bet on Team Y: $1,000 × 45.45% / 88.93% = $511.02
Guaranteed profit: Approximately $110-120 regardless of outcome (11-12% ROI).
How to Read the OddsTide Arbitrage Tool
When you load the Arbitrage Tool on OddsTide.com, you’ll see the following columns:
- Market – The betting market being analyzed (e.g., Moneyline, Spread, Total Goals).
- Book – The sportsbook where the bet should be placed.
- Bets – The specific outcomes that should be covered to complete the arb.
- Bet Sizes – The calculated stake amounts for each bet, based on your total stake input at the top of the tool.
Step-by-Step: How to Use the Tool
Step 1 – Enter Your Stake
At the top of the tool, enter the amount you want to invest in the arbitrage opportunity. The tool will use this to calculate exact stake amounts for each bet.
Step 2 – Review the Market
Identify the sport, league, and market where the arbitrage opportunity exists.
Step 3 – Place Each Bet
Follow the “Book” column to see where to place each wager, and use the “Bet Sizes” column to match your stakes perfectly.
Step 4 – Confirm the Odds
Odds change quickly. Double-check that the displayed odds are still available before finalizing your bets.
Step 5 – Lock in Profit
Once both (or all) bets are placed, your profit is guaranteed—no matter the result.
Why the OddsTide Arbitrage Tool Works
- Real-Time Odds Comparison – Continuously scans multiple sportsbooks to find opportunities before they disappear.
- Instant Stake Calculation – Automatically tells you exactly how much to bet on each side.
- Clear Market Identification – Easily see what event, market, and sportsbook to use.
- Flexible Stake Input – Enter any total investment amount to get precise bet sizing.
Pro Tips for Using the Arbitrage Tool
Execution Excellence
- Move Fast – Odds can shift in seconds; be ready to place bets quickly
- Use Multiple Sportsbooks – The more books you have, the more opportunities you'll find
- Prepare your accounts – Have funds ready across multiple sportsbooks for instant execution
- Use fast payment methods – E-wallets and crypto for quick deposits when needed
Risk Management
- Stay Under the Radar – Excessive arbitrage betting can lead to account limits; mix in normal bets
- Check Rules – Different books may have different settlement rules—make sure they align
- Verify bet acceptance – Confirm both bets are accepted before assuming the arb is complete
- Monitor for voided bets – Some books may void bets if they detect arbitrage activity
Advanced Strategies
- Combine with Positive Ev – Look for opportunities that are both +EV and arbitrage
- Use Odds Screen to monitor line movements and predict arbitrage opportunities
- Scale appropriately – Start with smaller stakes to test execution speed and book tolerance
Portfolio Integration
Bankroll allocation: Many bettors allocate 10-20% of their total bankroll to arbitrage opportunities, as covered in our Advanced Bankroll Management.
Complement your +EV strategy: Use arbitrage for guaranteed profits while using Positive Ev for higher-variance, higher-reward opportunities.
Track performance: Monitor your arbitrage ROI separately from your +EV betting in your Dashboard.
Common Pitfalls to Avoid
Bet limits: Some sportsbooks limit arbitrage bettors quickly. Diversify your betting patterns.
Settlement differences: Ensure both sportsbooks use the same rules for overtime, postponements, and player props.
Currency/time zone issues: International books may have different settlement times or currency conversion fees.
Overconfidence: Even "guaranteed" profits can disappear if execution is poor or rules differ.
Integrating with Other OddsTide Tools
Market timing: Use Odds Screen to understand how line movements might create arbitrage opportunities.
Risk assessment: If an arbitrage opportunity also shows positive EV in our Positive Ev, consider whether to bet the full arbitrage or take a position on just the +EV side.
Bankroll optimization: Learn proper Intro To Bankroll Management to determine appropriate arbitrage allocation.
Frequently Asked Questions
Is arbitrage betting legal?
Yes, arbitrage betting is completely legal. However, sportsbooks may limit or ban accounts that only place arbitrage bets. It's recommended to mix in regular bets to avoid detection.
How much money do I need to start arbitrage betting?
You can start with as little as $500-1000 across 2-3 sportsbooks, but $5000+ allows for better opportunities. The more capital and sportsbook accounts you have, the more arbitrage opportunities you can capitalize on.
Why do arbitrage opportunities disappear so quickly?
Sportsbooks constantly adjust their lines based on betting action and other books' odds. When an arbitrage opportunity appears, sharp bettors quickly exploit it, causing books to adjust and close the gap.
What's the average profit from arbitrage betting?
Most arbitrage opportunities yield 1-5% profit. While this seems small, these are risk-free profits that can be repeated multiple times daily, leading to consistent returns of 10-30% monthly for active arbers.
Can sportsbooks void my arbitrage bets?
Sportsbooks can void bets if there was an obvious error in the odds (palpable error), but this is rare. Legitimate arbitrage opportunities from normal line movements are honored.
Final Thoughts
The OddsTide Arbitrage Tool is the easiest way to turn odds discrepancies into risk-free profit. With a simple stake input, automated bet size calculations, and live market data, you can execute arbs efficiently and confidently.
Arbitrage betting provides the foundation for a risk-free profit stream, but it's most powerful when combined with other OddsTide tools in a comprehensive betting strategy.
Next steps:
- Practice with small stakes to perfect your execution speed
- Set up accounts at multiple sportsbooks for maximum opportunities
- Learn Advanced Bankroll Management to optimize your arbitrage allocation
- Explore the Positive Ev tool to add higher-upside opportunities to your portfolio
The principles discussed here align with research from the Journal of Gambling Studies.