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However, businesses suffer from it, and betting companies try their best to prevent it. Usually, the Terms & Conditions of gambling platforms prohibit multiple bets on the same event and multiple accounts to avoid arbitrage. When arbing is noticed, bookmakers limit accounts or cancel bets. Bookmakers often react ambiguously. Some actually welcome arbing as it helps them sharpen their odds and enhance their modeling. But the majority see arbers as unwanted customers and enact penalties against them, which include: As arbers can threaten the profits of bookmakers, detecting them is quite a big deal for betting companies. Arbitrage detection is handled by the security departments of betting companies. Using special algorithms, employees calculate players falling under the arber category according to the following parameters: The following procedures will help detect arbers: All in all, if companies want to ward off arbers, detecting multiple accounts and keeping an eye out for red flags are essential steps to take. Is arbitrage betting legal? What does ARB mean in betting? Is arbitrage legal in gambling? What is an example of arbitrage gambling? How can you spot an arbitrage bet? Arbitrage Definition in Sports Betting. Arbitrage is a form of hedging, but the true definition requires bettors to place their arbitrage bets at the same time. Arbitrage Examples. Let's say you bet $100 on the Cubs moneyline at +110 against the Cardinals at FanDuel. You'd profit $110 with a Chicago win. You can bet $105 on the Cardinals to win $100, and guarantee either a break-even or $5 profit. You can use our Markets Terminal at Labs Insiders to automatically find games at legal books with arbitrage opportunities.