Can you show me a working example of a sports arbitrage opportunity and how the investment would be staked?

A sports arbitrage opportunity is shown below:

A correctly staked investment of £1,000 guarantees a return of £1,093.75 no matter which actress wins. That's £93.75 profit due to discrepancies in the bookmakers' odds guaranteeing a 9.375% profit on your investment!

The above information tells us that a betting market exists for which actress will win the award for "best supporting actress" at the 2010 Golden Glove Awards. It also tells us that BWin have odds of 1.40 for Monique to win and that The Greek have odds of 5.00 for any other actress to win.

By applying a simple mathematical formula to those odds, we are able to calculate that we can cover both possible outcomes of the bet and make a guaranteed 9.375% return on our investment.

We would invest our money in proportion to the odds on each possibility. The amount to invest on each outcome is calculated using another simple formula. £781.25 invested on Monique returns £1,093.75 and £218.75 invested on "any other" returns £1,093.75.

£781.25 x 1.40 = £1,093.75
£218.75 x 5.00 = £1,093.75

Risk free profit = £93.75

Our members have access to several arbitrage calculation tools that automatically calculate the size of the arbitrage opportunity AND how much to stake on each selection!

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