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 July 2020 is shown below:
Real Life Example ArbBrazilian Campeonato Cearense Football Match
Under 2.5 Goals » 3.10 (Bet365) » £35.78 returns £110.92
Over 2.5 Goals » 1.727272 (William Hill) » £64.22 returns £110.93
Notes: Guarany vs. Fortaleza
Total arb / surebet profit : 10.923%
A correctly staked investment of £100 guarantees a return of £110.92 no matter the outcome. That's £10.92 profit due to discrepancies in the bookmakers' odds, guaranteeing a 10.923% profit on your investment in under 24 hours!
The above information tells us that a betting market exists on the Brazilian Campeonato Cearense Football Match between Guarany and Fortaleza. It also tells us that Bet365 have odds of 3.10 for Under 2.5 Goals, and that William Hill have odds of 1.727272 for Over 2.5 Goals.
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 10.923% 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. £35.78 invested on Under 2.5 Goals returns £110.92, and £64.22 invested on Over 2.5 Goals returns £110.93.
£35.78 x 3.10 = £110.92
£64.22 x 1.727272 = £110.93
Risk free profit = £10.92
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