What is Arbitrage?

Arbitrage (“arb”) exploits price differences between sportsbooks to guarantee profit regardless of outcome.

Book A: Team X +150 (implied 40%)
Book B: Team Y -130 (implied 56.5%)
Total implied: 96.5% < 100% = ARBITRAGE

How It Works

Example: Two-Way Market

Game: Lakers vs Warriors

Since 98.2% < 100%, arbitrage exists!

Profit calculation:

Profit % = (100 / 98.2) - 100 = 1.83%

Calculating Stakes

To guarantee equal return regardless of outcome:

const total = 1/2.45 + 1/1.74;  // Sum of implied probs
const stake1 = (1/2.45) / total;  // 41.5%
const stake2 = (1/1.74) / total;  // 58.5%

With $1000 total:

Guaranteed profit: ~$18 (1.8%)

Three-Way Markets

Soccer and hockey have draws, creating 3-way arbs:

Team A: +200 (33.3%)
Draw:   +250 (28.6%)
Team B: +180 (35.7%)
Total: 97.6% → 2.4% arb

Why Arbs Exist

1. Timing differences - Books update at different speeds
2. Opinion differences - Books have different risk models
3. Promotions - Boosted odds create artificial arbs
4. Errors - Occasionally, a book makes a mistake

Arb Hunting Challenges

Warning: Sportsbooks don’t like arbers:

• Accounts get limited or banned
• Withdrawals may be delayed
• You may be restricted to small bets

Tips to Avoid Detection

1. Round bet amounts - $47.32 looks suspicious, $50 doesn’t
2. Mix in recreational bets - Don’t only bet arbs
3. Withdraw gradually - Large withdrawals trigger reviews
4. Use multiple accounts - Spread action (where legal)

SharpAPI Arb Features

Arb vs EV Betting

Tip: Many sharp bettors prefer +EV over arb because accounts last longer and edges are often larger.