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 21st October 2021 is shown below:
Real Life Example ArbPolish Energa Basket Liga Basketball Match
Under 166.5 Points » 1.88 (Unibet) » £56.58 returns £106.37
Over 166.5 Points » 2.45 (BetVictor) » £43.42 returns £106.38
Notes: Slask Wroclaw vs. Dabrowa Gornicza
Total arb / surebet profit : 6.374%
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 6.374% profit on your investment in less than 48 hours!
The above information tells us that a betting market exists on the Polish Energa Basket Liga Basketball Match between Slask Wroclaw and Dabrowa Gornicza. It also tells us that Unibet have odds of 1.88 for Under 166.5 Points, and that BetVictor have odds of 2.45 for Over 166.5 Points.
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 6.374% 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. £56.58 invested on Under 166.5 Points returns £106.37, and £43.42 invested on Over 166.5 Points returns £106.38.
£56.58 x 1.88 = £106.37
£43.42 x 2.45 = £106.38
Risk free profit = £6.37
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