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 1st March 2021 is shown below:
Real Life Example ArbRussian MHL Ice Hockey Match
Sakhalinskie Akuly » 4.10 (BetVictor) » £25.95 returns £106.40
Draw » 4.80 (BetVictor) » £22.16 returns £106.37
Tayfun » 2.05 (Bet365) » £51.89 returns £106.37
Total arb / surebet profit : 6.378%
A correctly staked investment of £100 guarantees a return of £106.37 no matter the outcome. That's £6.37 profit due to discrepancies in the bookmakers' odds, guaranteeing a 6.378% profit on your investment in under 24 hours!
The above information tells us that a betting market exists on the Russian MHL Ice Hockey Match between Sakhalinskie Akuly and Tayfun. It also tells us that BetVictor have odds of 4.10 for Sakhalinskie Akuly to win, BetVictor have odds of 4.80 for a draw, and that Bet365 have odds of 2.05 for Tayfun 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 6.378% 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. £25.95 invested on Sakhalinskie Akuly returns £106.40, £22.16 invested on the draw returns £106.37, and £51.89 invested on Sakhalinskie Akuly returns £106.40.
£25.95 x 4.10 = £106.40
£22.16 x 4.80 = £106.37
£51.89 x 2.05 = £106.37
Risk free profit = £6.37
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