Complete Guide to Arbitrage Betting in the UK: How It Works & What You Need to Know

What is Arbitrage Betting?

Arbitrage betting is betting on all possible outcomes of a sports event, i.e. a football, tennis, or boxing match, guarantees you a profit regardless of which outcome wins. This type of sports betting works best on games that only have two possible outcomes. Still, you can try arbitrage on sports events with multiple outcomes, but since you will have spread your margins too thin across more bets, your win rate will be small. Thus, we recommend sticking to games or matches with two teams or players to maximise your winnings.

To place an arbitrage bet, you need to find a game that you want to bet on, and then look for bookmakers offering different odds on the same sports event. But remember that many UK betting sites won’t like it when you place arbitrage bets, since you are beating them in their own game.

How Does Arbitrage Betting Work?

Arbitrage betting works by exploiting the discrepancies in odds offered by two or more bookmakers. Here are simple steps to follow when placing an arb bet.

1. Look for at least two bookmakers offering different odds on the same sports event.

2. Calculate how much you need to wager on each outcome to maximise your return.

3. Wager on both sides. The overall return from the outcomes will be higher than your total stake.

To help you better understand how arbitrage works, let’s look at a simple example:

Assume Aston Villa is playing Tottenham Hotspur, and Bet365 favours Aston Villa by offering it +110 odds. On the other hand, Betway favours Tottenham Hotspur, offering the team +110 odds. With this odds disparity, you can wager £100 on each team (£100 on Bet365’s Aston Villa +110 odds and £100 on Betway’s Tottenham Hotspur +110 odds).

Regardless of which team wins the match, you will get £110 (for winning one of the bets), plus the original £100 (the amount you wagered on the winning bet) for a total of $210. And since you spent £200 on both bets and £210 paid out, you will get a return of 5% (£10) on the arbitrage.

Is Arbitrage Betting Legal in the UK?

If you are new to arbitrage betting in the UK, you may be hesitant to get started with arbing simply because you worry it might be illegal. The good news is that arbitrage betting is completely legal in the UK, and the United Kingdom Gambling Commission (UKGC) considers it a form of advantage play (just like card counting in blackjack and baccarat) where you use publicly available information (betting odds in this case) to make betting decisions.

Even though it is legal, many bookmakers don’t like it since you are beating them in their own game, and some may restrict how much you can bet by setting arbitrage bet limits. Others may even ban you if they find you arbing. Thus, you should use the best arbitrage betting bookmakers in the UK that we recommend in this guide and on our site, as they are licensed, secure, and offer fair betting terms. You can also bet smart to avoid detection. 

Pros and Cons of Arbitrage Betting

Arbitrage betting offers a smart way to make steady profits when betting online, which boosts your payouts. Let’s look at its common pros and cons.

Common Types of Arbitrage Bets

The top UK arbitrage betting sites offer several arbitrage bets that you can choose from. They include;

Back/Lay Arbitrage

This is the most common type of arbitrage bet, and it involves two bets (back and lay bets) between a bookmaker and a betting exchange. A back bet simply means that you wager that a particular outcome will happen, while a lay bet means that you wager that an outcome will not happen. So, in back/lay arbitrage betting, you place the back bet on the bookmaker and then wager on the lay bet on the betting exchange.

To leverage a back/lay bet, you can place the bet when you notice that the lay price on an exchange is shorter than the win odds (back odds) on another bookmaker or exchange.

Multi-Way Arbing

Multi-way arbing involves placing arbitrage bets on sports events that have more than two possible outcomes. For instance, a sports event can have three, four, or five outcomes. For example, in a football match, there are three potential outcomes: a win, a lose, and a draw. If you wager on all three outcomes, it is called three-way arbing.

The main advantages of multi-way arbing over back/lay arbitrage are that it offers more opportunities to make profits. Also, it’s hard for bookmakers to detect it since you are not directly betting on opposing sides.

Cross-Market Arbitrage

In this type of arbitrage betting, you place arb bets on different markets or bet types that are related but not identical. So, instead of betting on matching (but opposing) outcomes at two bookies, you bet on two different outcomes that are linked. For instance, you can place a bet on the overall outcome of a football match with one bookmaker and then wager on a specific aspect of the game, i.e. the total number of goals scored, with another bookmaker.

With cross-market arbitrage, you can open up a whole new layer of value, increasing your profits.

Risks and Challenges

Even though the risks that come with arbing are far less compared to those of other sports betting strategies, there are a few challenges you can face. The most common one is bookmaker limitations. If bookmakers catch you arbing, they can limit the amount of money you can wager, lowering your profits. They may also restrict you from wagering on certain betting markets, bet types, or withdrawal frequency.

You may also run the risk of bookmakers changing odds. This may affect your research and calculations when placing arb wagers. Other risks include errors in your calculations or delays in placing your wagers.

Best Practices for UK Arbers

When arbing, there are some strategies you can implement to maximise profits and avoid common risks, and the most important one is account management. You should open multiple accounts with different bookies and make sure the operators you are joining are legitimate, licensed by the UKGC, and offer a wide range of betting markets.

Another great strategy is to manage your bankroll effectively by keeping track of how much you are wagering and winning. Also, you should place smart arbitrage bets to avoid detection and do not make it obvious you are using arbitrage calculators. For example, if you get £49.64 on one side and £50.32 on the other with an arbitrage calculator, round them up to £50 and £50.

More UK Betting Guides from our Experts

• https://www.livescore.com/en-gb/betting-sites/strategy/how-to-bet-on-rugby-union/

• https://www.livescore.com/en-gb/betting-sites/strategy/how-does-a-placepot-work/

• https://www.livescore.com/en-gb/betting-sites/strategy/how-to-bet-on-f1-races/

Responsible Gambling

As you have seen, arbitrage betting is a low-risk betting strategy and guarantees you a profit regardless of the game or match outcome. However, you must bet responsibly to enjoy its benefits. That means betting within your means, setting a budget, and placing smart bet sizes. You should also set deposit limits to avoid overspending, and if you feel or realise your betting is getting out of control, use responsible gambling tools like self-exclusion and timeouts. As well, use helplines and responsible gambling resources available on the bookmakers you are using to if you need more help.