Definition of Arbitrage Bet

What does the term "arbitrage bet" mean in the world of sports betting? What is meant by the term "arbitrage bet"?

In sports betting, an "arbitrage bet" occurs when you are placing multiple bets on the same event that ensure a profit, no matter what the outcome is.

For instance - let's say that there are two sportsbooks that are offering lines on a big playoff football game, where there is guaranteed to be a winner.

Site A has the odds like this:

Team A, +105
Team B, -120

Site B has the odds like this:

Team A, -115
Team B, +100

This is an example of an arbitrage possibility.

In order to ensure yourself a profit, you would need to bet $49.38 on the +105 odds, and $50.62 on the +100 odds in order to guarantee yourself a profit, regardless of who wins.

In this case, the guaranteed profit would be 1.23%, or $1.23 for every $100 wagered.

Obviously you would want to bet as much as possible, given that a profit is guaranteed.

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Arbitrage plays aren't the easiest to find, though they are out there.