Can you show me a working example of a sports arbitrage opportunity and how the investment would be staked?
A real sports arbitrage opportunity from 13th April 2021 is shown below:
Real Life Example ArbMLB Baseball Match
Under 4.5 Runs » 3.60 (Expekt) » £30.77 returns £110.77
Over 4.5 Runs » 1.60 (Bwin) » £69.23 returns £110.77
Notes: New York Mets vs. Philadelphia Phillies
Total arb / surebet profit : 10.769%
A correctly staked investment of £100 guarantees a return of £110.77 no matter the outcome. That's £10.77 profit due to discrepancies in the bookmakers' odds, guaranteeing a 10.769% profit on your investment in under 24 hours!
The above information tells us that a betting market exists on the MLB Baseball Match between New York Mets and Philadelphia Phillies. It also tells us that Expekt have odds of 3.60 for Under 4.5 Runs, and that Bwin have odds of 1.60 for Over 4.5 Runs.
By applying a simple mathematical formula to those odds, we are able to calculate that we can cover all possible outcomes of the match and make a guaranteed 10.769% 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. £30.77 invested on Under 4.5 Runs returns £110.77, and £69.23 invested on Over 4.5 Runs returns £110.77.
£30.77 x 3.60 = £110.77
£69.23 x 1.60 = £110.77
Risk free profit = £10.77
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