Uncovering Sports Wagering Manipulation: Strategies for Companies to Identify Arbitrage (2025)
In the ever-growing iGaming industry, which is projected to reach a staggering $114.4 billion by 2028, a strategic approach known as arbitrage betting, or "arbing," has emerged as a popular tactic among some players. This low-risk, data-driven strategy allows individuals to capitalise on minor pricing inefficiencies across bookmakers.
Arbitrage betting involves placing bets on all possible outcomes of an event across different sportsbooks to guarantee a profit, regardless of the result. This strategy exploits differences in odds offered by bookmakers. Arbers, as these individuals are known, calculate optimal stake sizes to ensure a small profit margin, typically between 1% and 5%. They often use software tools or arbitrage betting sites to monitor and identify these opportunities efficiently.
Common strategies employed by arbers include placing bets on all outcomes, using arbitrage betting software and scanners, regularly comparing odds across multiple sportsbooks, managing account limitations, and even exploiting sportsbook bonuses and promotions to maximise returns. High-frequency betting is another common tactic due to the small profit margins per bet.
Mobile gambling is predicted to account for 51% of the total iGaming market by 2027, making it crucial for betting companies to implement robust security measures. One such measure is bank card verification, which allows companies to conduct user identification and verification by bank card as supplementary security features. Liveness, a procedure that confirms account ownership and prevents multiple accounts per user, is another essential security feature.
However, arbers can pose a threat to betting companies' profits. To combat this, companies use various methods, including AML Screening, which searches external databases for a bettor's involvement in financial crime or other illegal activities, and arbitrage detection handled by special algorithms. Sumsub's Prooface liveness tool can also help protect companies from arbing.
It's important to note that while arbitrage betting is not illegal in any country where gambling and betting is permitted, betting companies often limit accounts or cancel bets when they notice it. Arbitrage opportunities can stem from a single bookmaker or from a difference in odds for the same event between several bookmakers.
Arbitrage betting and money laundering can have similar patterns, but they serve different purposes and have different intentions. Arbitrage aims for profit through market inefficiencies, while money laundering seeks to clean "dirty" money. Investigating, tracking, and reporting arbers can be managed with Sumsub's tools that include built-in workflows, checklists, and instant reporting tools.
In conclusion, while arbitrage betting is a strategic approach used by some players in the iGaming industry, it is important for betting companies to implement robust security measures to protect their profits. By using bank card verification, liveness, AML Screening, and other tools, companies can effectively detect and prevent arbing, ensuring a fair and secure gaming environment for all.
[1] Arbitrage Betting Explained: A Comprehensive Guide for Beginners, BettingExpert, https://www.bettingexpert.com/betting-tips/arbitrage-betting/arbitrage-betting-explained-a-comprehensive-guide-for-beginners
[3] Arbitrage Betting: How It Works and How to Get Started, BettingPros, https://www.bettingpros.com/betting-tips/arbitrage-betting/arbitrage-betting-how-it-works-and-how-to-get-started
Sports betting, such as arbitrage betting, is a popular tactic in the iGaming industry, with players capitalising on minor pricing inefficiencies across bookmakers to guarantee a profit, regardless of the result. Arbers calculate optimal stake sizes to ensure a small profit margin, often exploiting differences in odds offered by sportsbooks.
Betting companies use various methods, including AML Screening, arbitrage detection, and tools like Sumsub's Prooface liveness tool, to combat the threat arbitrage betting poses to their profits. This approach ensures a fair and secure gaming environment for all. [1][3]
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