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 19th May 2022 is shown below:
Real Life Example ArbNorwegian Football Cup Football Match
Under 5.5 Goals » 1.285714 (Boylesports) » £81.33 returns £104.57
Over 5.5 Goals » 5.60 (Unibet) » £18.67 returns £104.55
Notes: Floro vs. Sogndal
Total arb / surebet profit : 4.564%
A correctly staked investment of £100 guarantees a return of £104.55 no matter the outcome. That's £4.55 profit due to discrepancies in the bookmakers' odds, guaranteeing a 4.564% profit on your investment in under 24 hours!
The above information tells us that a betting market exists on the Norwegian Football Cup Football Match between Floro and Sogndal. It also tells us that Boylesports have odds of 1.285714 for Under 5.5 Goals, and that Unibet have odds of 5.60 for Over 5.5 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 4.564% 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. £81.33 invested on Under 5.5 Goals returns £104.57, and £18.67 invested on Over 5.5 Goals returns £104.55.
£81.33 x 1.285714 = £104.57
£18.67 x 5.60 = £104.55
Risk free profit = £4.55
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