What happens when a sportsbook terminates accounts for arbitrage betting?

• A. Terminating accounts for arbitrage can preserve integrity but may reduce customer base.
• B. It never happens as arbitrage is allowed.
• C. It automatically leads to license revocation.
• D. It increases betting volume.

Answer: (A)

Arbitrage betting creates risk for a sportsbook’s margins, so terminating accounts that engage in it helps protect the book by preventing customers from exploiting price differences across bookmakers. This preserves the integrity and liquidity of the operation, which is the priority for the sportsbook. At the same time, it can reduce the customer base because some high-volume arbitrage bettors are removed. That trade-off is why this option best captures the outcome. The other possibilities don’t fit: sportsbooks generally don’t allow arbitrage, account closures aren’t the same as license revocation, and closing accounts would not increase betting volume.