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 9th August 2020 is shown below:
Real Life Example ArbNBA Basketball Match
Under 227.5 Points » 2.30 (BetVictor) » £45.24 returns £104.05
Over 227.5 Points » 1.90 (Bet365) » £54.76 returns £104.04
Notes: Los Angeles Clippers vs. Brooklyn Nets
Total arb / surebet profit : 4.048%
A correctly staked investment of £100 guarantees a return of £104.04 no matter the outcome. That's £4.04 profit due to discrepancies in the bookmakers' odds, guaranteeing a 4.048% profit on your investment in under 24 hours!
The above information tells us that a betting market exists on the NBA Basketball Match between Los Angeles Clippers and Brooklyn Nets. It also tells us that BetVictor have odds of 2.30 for Under 227.5 Points, and that Bet365 have odds of 1.90 for Over 227.5 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 4.048% 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. £45.24 invested on Under 227.5 Points returns £104.05, and £54.76 invested on Over 227.5 Points returns £104.04.
£45.24 x 2.30 = £104.05
£54.76 x 1.90 = £104.04
Risk free profit = £4.04
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