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 17th August 2022 is shown below:
Real Life Example ArbCzech Cup Football Match
FK Ceska Lipa » 2.00 (Bet365) » £53.46 returns £106.92
Draw » 4.45 (Marathonbet) » £24.03 returns £106.93
Benatky n. Jiz. » 4.75 (Boylesports) » £22.51 returns £106.92
Total arb / surebet profit : 6.924%
A correctly staked investment of £100 guarantees a return of £106.92 no matter the outcome. That's £6.92 profit due to discrepancies in the bookmakers' odds, guaranteeing a 6.924% profit on your investment in under 24 hours!
The above information tells us that a betting market exists on the Czech Cup Football Match between FK Ceska Lipa and Benatky n. Jiz.. It also tells us that Bet365 have odds of 2.00 for FK Ceska Lipa to win, Marathonbet have odds of 4.45 for a draw, and that Boylesports have odds of 4.75 for Benatky n. Jiz. to win.
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 6.924% 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. £53.46 invested on FK Ceska Lipa returns £106.92, £24.03 invested on the draw returns £106.93, and £22.51 invested on FK Ceska Lipa returns £106.92.
£53.46 x 2.00 = £106.92
£24.03 x 4.45 = £106.93
£22.51 x 4.75 = £106.92
Risk free profit = £6.92
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