Arbitrage In Sports Betting: How To Detect It in 2026?

The global sports betting industry is booming and is projected to grow from $124.88 billion in 2026 to $325.71 billion in 2035, with a CAGR of 11.24%. As players gain access to a wide range of bookmakers and betting exchanges, bettors have a large range of odds and options to use to their advantage, making arbitrage betting easier than ever.

As more countries legalize sports betting and the technological landscape develops, players often see sports betting as a means of investment rather than entertainment. One of the most common strategies used to exploit bookmakers to make money is sports betting arbitrage, often shortened to “arbing,” where a bettor places wagers on every possible outcome of an event to secure a potential profit.

While arbitrage betting is not a legal category in gambling law and unlikely to be considered a criminal issue on its own, from a bookmaker’s perspective, it creates commercial risk, which is why many platforms actively monitor for arbing and apply restrictions when it is detected.

What is arbitrage betting?

Arbitrage betting (also known as “arbing,” “arbs,” or “sure bets”) is a betting strategy where a player hedges their bets by placing bets on all possible outcomes of the same event, typically a sporting event, to secure a potential profit. Arbers do this by exploiting the differences in odds between bookmakers, even sometimes using bots to automatically do this by scanning betting platforms for favorable odds, placing multiple bets, and passing on the profit to the bettor. 

Explained simply, arbitrage betting involves exploiting different odds across platforms, with arbers able to structure their bets to try to win no matter the result. However, bookmakers do actively monitor for signs of arbitrage betting, so arbers try to avoid detection.

How does arbitrage betting work?

Arbitrage betting works by taking advantage of differences in odds between bookmakers covering the same event. When odds are set differently, players can divide stakes across the different outcomes to figure out how to maximize their returns, with the total return exceeding the total stake.

For example, in a Premier League soccer match between Manchester United and Liverpool, one bookmaker might offer higher odds on Manchester United to win, while another might offer better odds on Liverpool. The bettor can calculate the right stakes and place bets with both bookmakers to not only make sure one of their bets wins, but that the payout gives them a profit.

Arbitrage vs EV betting: What’s the difference?

Arbitrage betting and expected value betting (EV betting) both use betting odds to make the bettor a profit, but they are fundamentally different in their strategies. The EV refers to what the bettor’s likely to win or lose on each bet if they repeatedly place bets on the same odds over time. A positive EV means there will be a profit over time, while a negative EV indicates a loss.  

Positive EV betting is when a player places bets that are statistically in their favor rather than the bookmaker’s and uses this strategy to make a long-term profit, expecting they will lose some bets rather than securing a return like arbitrage betting. 

Examples of sport arbitrage

The arbitrage strategy depends on the number of outcomes. More outcomes make arbitrage more complicated. In a game of soccer, for example, there are three outcomes, while in a tennis match, there are two.

Soccer arbitrage betting example

A soccer match requires three bets: one on each team to win, plus one on a draw. Arbers can place bets with different betting companies or with the same one. To secure a profit, arbitrage bettors calculate just the right combination of odds and bets, which are called arbitrage opportunities.

Imagine Manchester United and Liverpool are playing in a hotly anticipated match. Due to human or technical error, the bookmaker has set the following odds for the outcome:

Let’s say the player bets $195 in total:

• $45 on W1
• $50 on W2
• $100 on X

By using this strategy, the player will profit on any outcome of this match, thanks to the bookmaker's odds.

Tennis arbitrage betting example

Arbitrage betting typically works best when there are two possible outcomes, such as win or lose. In a tennis match, for example, arbing means placing two bets: one on each player to win. 

Now imagine Novak Djokovic and Rafael Nadal are playing against each other. Due to a human or technical error, the bookmaker has set the following odds:

A bettor wants to place a total of $201.57 across both outcomes in a sports betting arbitrage setup.

To make sure they make an even profit no matter the result, the bettor splits the stakes proportionally:

• $98.44 on Djokovic (2.2)
• $103.13 on Nadal (2.1)

Live arbitrage betting opportunities

To identify arbitrage betting opportunities, players need to constantly monitor the odds of multiple bookmakers and calculate potential income using manual or automated solutions. In live betting environments, odds can change as the match unfolds, leading to windows of mispriced markets. Arbitrage bettors can use odds comparison software or bots that scan multiple bookmakers, allowing them to place bets quickly before the bookmakers adjust them. 

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When do arbitrage opportunities occur?

Arbitrage opportunities occur when bookmakers imprecisely calculate probabilities. This can happen when the bookmaker:

• Fails to react to live events in real time. In dynamic sports such as basketball and tennis, odds can change multiple times per minute. This means bookmakers often have no time to react and change odds, or cancel a bet on their side.
• Sets the odds too high. The betting market is highly competitive, and bookmakers are interested in both retaining existing bettors and gaining new ones. This can lead to tighter margins and competitive odds as bookmakers wrestle for market share.  

Arbitrage betting bots and automation 

Bettors sometimes use automation to identify and implement their arbitrage strategies at scale. An arbitrage betting bot is a type of software that continuously monitors odds across multiple betting platforms and automatically places bets when it detects profitable discrepancies in odds.

Bots marketed as “AI betting bots” (sports betting arbitrage bots, or arb bots) focus on rapid data processing and automation to enhance decision-making.

While betting bots may increase arbitrage betting efficiency, they can also generate repetitive betting patterns, potentially making it easier for bookmakers to detect bots.

Arbitrage betting software and tools

Many arbers rely on dedicated arbitrage betting software or manual arbitrage betting tools designed to support decision-making rather than automatically making bets.

These tools typically offer features like real-time odds comparison across bookmakers, automated arbitrage opportunity detection, profit and stake calculators, and alerts for pricing discrepancies. 

These tools may make arbitrage more accessible, but users still need to manage multiple accounts, act quickly, and adapt to constantly changing market conditions if they want to make a profit.

Casino & gambling arbitrage: Bonus abuse

In addition to sports betting arbitrage, similar strategies are widely used in online casinos and betting platforms by exploiting promotional offers. This form of gambling arbitrage is often linked to casino bonus abuse, where players take advantage of sign-up bonuses, free bets, or matched deposits with little or no exposure to risk.

While this behavior is not treated as a criminal offense on its own, it is likely to be in violation of a platform’s Terms & Conditions and can result in account termination.

Suggested read: Bonus Abuse in Gambling: Types, Risks & How to Prevent It 2025

What is bonus hunting?

Bonus hunting is when bettors seek out platforms for their promotional offers rather than to play on the platform as a legitimate player. Bonus hunters sign up to multiple bookmakers or casinos and claim offers like welcome bonuses, free bets, or deposit matches. They then exploit odds in their favor to minimize their losses and withdraw their funds after meeting the bonus conditions.

💡If a player meets the bonus conditions, they should not be considered a bonus hunter. Bonus hunting or matched betting, when conducted in compliance with the applicable terms and conditions, should not be classified as bonus abuse.

What is matched betting?

Matched betting involves using bookmaker bonuses, such as free bets, and placing opposing bets to reduce risk.

Matched betting explained simply: the player structures their bets so all possible outcomes are covered, allowing them to convert promotional bonuses into real money.

How matched betting works

A bookmaker offers a $50 free bet after a qualifying wager. The player:

1. Places the qualifying bet
2. Receives the free bet
3. Places the free bet on one outcome
4. Places a hedge bet on the opposite outcome on another platform 

By carefully calculating stake sizes and odds, the player can make sure that one side of the bet wins, converting most of the bonus into cash.

Sure bets vs arbitrage betting 

The terms “sure bets” and “arbitrage betting” are often used interchangeably in gambling and betting communities, but they are not always understood the same way. Both refer to strategies that exploit odds in betting markets to make a profit.

“Sure bets” is often used to promote arbitrage betting opportunities, often under labels like “sure bets today.” These claim to provide users with a list of profitable bets based on odds discrepancies between bookmakers.

Arbitrage betting describes the strategy of placing bets across all possible outcomes of an event to secure a profit. 

Poker collusion and chip dumping

Not all forms of gambling abuse involve exploiting discrepancies in odds. In peer-to-peer games like online poker, risk can come from player collusion rather than from individual betting strategies. Two of the most common forms of abuse in this space are poker collusion and chip dumping.

Poker collusion is when two or more players secretly cooperate at the same table to gain an unfair advantage over the other players or launder money. In fact, poker collusion is a serious red flag for money laundering.

Chip dumping is a form of collusion in which one player intentionally loses chips to another, for example, by making irrational plays or folding strong hands. This technique can be used to transfer value between accounts, facilitating potential money laundering.

Both behaviors can be difficult to detect, and operators often rely on advanced behavioral analytics, gameplay monitoring, and account linkage analysis to identify suspicious patterns. However, it can take a long time to detect.

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Legality of arbitrage betting

It is important to clarify that arbitrage betting (arbing) is not a legal category in gambling law. Laws do not define, approve, or prohibit arbitrage. In practice, arbitrage betting is not treated as a criminal matter in itself. 

The consequences are more likely to be contractual than legal, as arbitrage betting can violate the Terms & Conditions of individual betting platforms. Many bookmakers prohibit practices like operating multiple accounts, coordinating bets across linked accounts, or systematically exploiting pricing discrepancies. When such behavior is detected, operators may restrict accounts, limit stakes, withhold bonuses, or void bets, depending on the Terms & Conditions.

💡What does matter from a legal perspective is whether gambling and sports betting are permitted in a given jurisdiction and whether players comply with applicable laws (e.g., fraud, identity misuse, AML rules).

Arbitrage betting legality by country: Myth vs Reality

Because arbitrage betting is not defined as a legal concept, there is no jurisdiction where it is formally licensed or approved as a distinct activity. Instead, the risk for bettors depends on the broader legal context for gambling. 

• In regulated gambling markets such as the UK, much of the EU, and parts of the United States, betting itself is lawful, and arbitrage betting on its own would typically result in platform-level consequences, such as account restrictions, rather than legal penalties.
• In jurisdictions where gambling is restricted or illegal, any form of betting, including arbitrage betting, carries legal risk.

The law regulates gambling behavior and compliance rather than arbitrage as a strategic concept. 

Suggested read: The Gambling Commission: AML, License Requirements, Responsible Gambling and More

How bookmakers treat arbers

Bookmakers typically address arbitrage betting through commercial and operational measures. Common responses include:

• Limiting maximum stake sizes
• Removing eligibility for promotions or bonuses
• Closing or suspending accounts
• Voiding bets where the website’s Terms & Conditions have been breached
• Monitoring linked accounts to detect coordinated activity

Because arbitrage betting often produces predictable, low-variance betting patterns, it can be identified using behavioral analytics, device fingerprinting, and transaction monitoring systems.

Sports betting money laundering patterns

Money laundering is the illegal process of disguising the origins of illicit funds to make them appear legitimate.

While both arbitrage betting and money laundering may involve unusual transaction patterns on betting platforms, they serve entirely different purposes. Arbitrage aims for profit through market inefficiencies, while money laundering seeks to clean "dirty" money. They can be confused because both involve multiple transactions and unusual betting patterns, but the intent and legality clearly distinguish them.

Arbitrage betting patterns are sometimes mistakenly confused with money laundering patterns. For example, a client makes a large deposit, places a few unusual bets, and then withdraws nearly the same amount. At first glance, this could appear to be potential money laundering, particularly when reviewed from the perspective of transaction history. However, checking the odds (which tend to be very low) reveals that the client has already been flagged by traders. Traders then 'cut the account,' forcing this arber to withdraw any remaining funds (often with fees applied), leaving them with no chance for further profitable activity.

Annamaria Terescenko

Lead Compliance Expert: Industry Compliance (iGaming), Product Compliance (Anti-Fraud)

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What do betting companies do when they detect arbers?

In practice, most operators treat arbers as unwanted customers and actively work to prevent them, including:

• Putting limits on bets. In this case, the gambler is either banned from setting higher bets or limited to a fixed minimum amount—usually a few dollars/euros.
• Voiding the bet. When the bookmaker detects a user engaged in arbing, they can void all of their current bets. Typically, all the funds in the account are paid back.
• Account termination. This is the strictest penalty bookmakers can impose for arbing. If a user has funds in their account when it is blocked, the operator will usually return the remaining balance to the payment method used for deposits. This may happen via a forced withdrawal, or the operator may allow the player to withdraw the funds manually.

As arbitrage can threaten bookmakers' profits, detecting it is a significant challenge for betting companies.

Today’s anti-arbitrage controls effectively flag suspicious betting patterns. Key indicators include repeated small withdrawals despite maintaining a consistently high account balance (a clear sign of funds being shuffled between accounts) and unusually large deposits even when earlier bets remain unsettled. Some bookmakers use ‘honeypot tactics’ by posting inflated odds to lure high-stakes arbitrageurs. Once bets are placed, operators can later claim that the betting line was mispriced and void the bets, leaving arbers high and dry.

Annamaria Terescenko

Lead Compliance Expert: Industry Compliance (iGaming), Product Compliance (Anti-Fraud)

Red flags and arber detection patterns

Arbitrage betting itself is not illegal, but it can expose operators to commercial risk and can also overlap with fraud and AML risk indicators. Regulated betting platforms can benefit from a mix of behavioral analytics, transaction monitoring, and identity verification to identify potential arbing.

Understanding these red flags helps operators distinguish between casual bettors and users who may be systematically exploiting pricing inefficiencies.

Behavioral indicators of arbitrage activity

Arbitrage betting tends to create highly structured behavior, which can make it fairly easy to detect. Common behavioral indicators include:

• Consistently placing bets across all outcomes of the same event on the same platform
• Making repeated bets
• Making uneven bets (e.g., $94.31 instead of $100)
• Staking high amounts approaching the maximum threshold
• Maintaining a consistent balance
• Choosing unpopular or unlikely events
• Frequently depositing and withdrawing money
• Rapid bet placement across multiple events within very little time

Another odd pattern from the Transaction Monitoring angle—multiple deposits and subsequent withdrawals without meaningful wagering activity between transactions. Is it money laundering? Not really.

In some cases, this pattern may be explained by the operator's commercial restrictions rather than an attempt to avoid betting. When trading teams identify an account as engaging in arbitrage, the operator may significantly reduce stake limits or restrict access to normal betting markets. As a result, the customer may continue to deposit and withdraw funds but show little or no meaningful betting activity, as they are no longer able to place bets under standard conditions.

Annamaria Terescenko

Lead Compliance Expert: Industry Compliance (iGaming), Product Compliance (Anti-Fraud)

Arber activity is driven by using iGaming as a means to make money rather than entertainment, which makes user behaviors recognizably different.

Multi-accounting and gnoming

Multi-accounting refers to the creation or use of more than one betting account by the same individual, in breach of operator terms and, in regulated markets, licensing objectives. It is typically prohibited because it undermines player-level controls such as limits, responsible gambling measures, and fair access to promotions. Where an operator permits or fails to address duplicate accounts, this may also raise regulatory concerns.

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Gnoming, by contrast, involves the use of third parties—such as friends or family members—to open and operate accounts on the bettor’s behalf. While distinct from direct multi-accounting, gnoming is often used to achieve similar outcomes, including bypassing betting limits, exploiting bonuses, or obscuring coordinated betting or arbitrage strategies. This practice may involve shared payment methods, devices, IP addresses, or withdrawal destinations.

From a compliance perspective, both activities present elevated risk. Multi-accounting represents a direct breach of terms and regulatory expectations, while gnoming raises additional concerns around identity misuse, third-party account control, and potential financial crime. As a result, operators increasingly rely on controls such as identity verification, device and network analysis, behavioural monitoring, and transaction reviews to identify duplicate or linked accounts and prevent misuse.

Fraud prevention strategies in betting & gambling

A layered approach is often the most effective way to prevent gambling fraud.

1. Reliable identity verification

Comprehensive KYC processes help ensure that each account is linked to a real individual. Identity verification, liveness checks, and document authentication can reduce the risk of fake identities, synthetic users, and account farming.

2. Behavioral and transactional monitoring

Continuous monitoring allows gambling and betting operators to detect unusual betting patterns, including arbitrage activity, coordinated betting across accounts, rapid deposit-withdrawal cycles, and other behavior unusual for a typical user.

3. Device and account linkage detection

Tools such as device fingerprinting, IP intelligence, and behavioral biometrics can help identify when multiple accounts are controlled by the same individual.

4. Risk-based controls

Platforms can use risk scoring models to trigger proportionate responses. These may include enhanced due diligence, stake limits, temporary restrictions, or manual review for high-risk accounts.

Suggested read: AML Casino Compliance and Responsible Gambling Standards: Global Guide 2025

AML/KYC tools for detecting arbers

Arbitrage detection is handled by the security and trading departments of betting companies. Using special algorithms, employees calculate players falling under the arber category according to the following parameters:

Liveness detection for multi-account prevention

A liveness biometry-based user identification solution confirms account ownership and prevents multiple accounts per user. Background and behavioral analysis also helps detect and block money mules and account farms.

AML screening in iGaming

Gambling and betting operators are required to comply with AML regulations. Standard AML/KYC procedures are not designed to identify arbitrage betting, however, they act as an important control layer that makes large-scale or concealed arbitrage harder to sustain. In practice, the detection of arbers typically relies on a combination of identity verification, transaction monitoring, device intelligence, and behavioural analysis rather than KYC alone.

In addition, screening against external databases can sometimes reveal a bettor’s involvement in financial crime or other illegal activity. This applies to all customers and is not specific to arbitrage bettors.

Device fingerprinting and behavioral analysis

Device fingerprinting and behavioral analysis help operators identify when multiple accounts are likely controlled by the same individual. By analyzing device characteristics like browser, hardware, and network signals alongside behavioral patterns like login habits and navigation behavior, platforms can detect linked accounts and unusual activity even when users attempt to disguise their identity.

Bank card and payment verification

Betting companies can verify users by confirming payment method ownership as a supplementary security and compliance measure, allowing bettors to use only pre-approved payment methods. While this is primarily intended for AML and fraud prevention, it can also make large-scale or concealed arbitrage more difficult. Ultimately, for operators seeking to limit arbitrage activity, detecting multiple accounts and monitoring behavioural red flags remains essential.

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FAQ

• Is arbitrage betting legal?

  Arbitrage betting is not a legal category in gambling law. In practice, it is unlikely to lead to criminal consequences on its own, but it can still result in account restrictions or closures if it breaches a platform’s Terms & Conditions.

• What are arbitrage betting strategies?

  There are two of the most common arbitrage strategies:

  • Bonus Hunting Arbitrage: This strategy involves taking advantage of various bonus offers across different betting platforms. It typically occurs when a player opens a new account with a bookmaker, who often provides a bonus for depositing a minimum amount.
  • Cross-Market Arbitrage: This strategy involves placing bets across multiple markets to exploit discrepancies in bookmaker pricing.

• What does ARB mean in betting?

  “ARB” is short for arbitrage. In betting, it refers to a situation where odds differences allow a bettor to cover all outcomes and secure a potential profit regardless of the result.

• Is arbitrage legal in gambling?

  There is no law that specifically defines or authorizes “arbitrage betting.” What matters is whether gambling and betting are lawful in the jurisdiction and whether the bettor’s behavior complies with legal requirements and platform rules.

• What is an example of arbitrage gambling?

  If one bookmaker offers odds of 2.2 on Player A to win and another offers 2.1 on Player B, a bettor can split stakes across both outcomes so that one bet always wins and the total return exceeds the total stake. This then creates a profit.

• How can you spot an arbitrage bet?

  • Monitor for red flags (such as bet size, repeated bets, whether the bettor withdraws money frequently, etc.)
  • Use liveness detection to confirm account ownership, which can detect multiple accounts per user.

• What is matched betting?

  Matched betting is a strategy that uses bonuses and free bets to generate low-risk profit. It typically involves placing opposing bets so that promotional value can be converted into withdrawable funds.

• What is EV betting?

  EV betting (expected value betting) is a strategy where bettors place wagers that are mathematically profitable over time, rather than profiting on each bet. Positive EV betting accepts short-term losses in exchange for a long-term statistical advantage.

• What is bonus hunting in casinos?

  Bonus hunting is the systematic exploitation of promotional offers, such as welcome bonuses or free spins, to make a profit.

• What is chip dumping in poker?

  Chip dumping occurs when a player intentionally loses chips to another player, often to transfer value between accounts. It is associated with collusion and raises very strong money laundering concerns.

• What is gnoming in gambling?

  Gnoming involves the use of third parties—such as friends or family members—to open and operate betting accounts on a bettor’s behalf. While it is distinct from direct multi-accounting, it is often used to achieve similar outcomes, including bypassing betting limits, exploiting bonuses, or obscuring coordinated betting or arbitrage strategies.

• How do casinos detect multi-accounting?

  Casinos use a tool for identity verification, device fingerprinting, IP analysis, behavioral analytics, and transaction monitoring to detect linked accounts.