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 29th July 2021 is shown below:
Real Life Example ArbPeruvian Liga 2 Football Match
Comerciantes Unidos » 4.00 (Boylesports) » £26.65 returns £106.60
Draw » 3.95 (Marathonbet) » £26.99 returns £106.61
Chavelines » 2.30 (Bwin) » £46.35 returns £106.61
Total arb / surebet profit : 6.616%
A correctly staked investment of £100 guarantees a return of £106.60 no matter the outcome. That's £6.60 profit due to discrepancies in the bookmakers' odds, guaranteeing a 6.616% profit on your investment in under 24 hours!
The above information tells us that a betting market exists on the Peruvian Liga 2 Football Match between Comerciantes Unidos and Chavelines. It also tells us that Boylesports have odds of 4.00 for Comerciantes Unidos to win, Marathonbet have odds of 3.95 for a draw, and that Bwin have odds of 2.30 for Chavelines 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 6.616% 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. £26.65 invested on Comerciantes Unidos returns £106.60, £26.99 invested on the draw returns £106.61, and £46.35 invested on Comerciantes Unidos returns £106.60.
£26.65 x 4.00 = £106.60
£26.99 x 3.95 = £106.61
£46.35 x 2.30 = £106.61
Risk free profit = £6.60
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