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 1st December 2020 is shown below:
Real Life Example ArbNCAA I-A Basketball Match
Under 148 Points » 1.90 (Bet365) » £56.82 returns £107.96
Over 148 Points » 2.50 (Unibet) » £43.18 returns £107.95
Notes: Kentucky vs. Kansas
Total arb / surebet profit : 7.955%
A correctly staked investment of £100 guarantees a return of £107.95 no matter the outcome. That's £7.95 profit due to discrepancies in the bookmakers' odds, guaranteeing a 7.955% profit on your investment in under 24 hours!
The above information tells us that a betting market exists on the NCAA I-A Basketball Match between Kentucky and Kansas. It also tells us that Bet365 have odds of 1.90 for Under 148 Points, and that Unibet have odds of 2.50 for Over 148 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 7.955% 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. £56.82 invested on Under 148 Points returns £107.96, and £43.18 invested on Over 148 Points returns £107.95.
£56.82 x 1.90 = £107.96
£43.18 x 2.50 = £107.95
Risk free profit = £7.95
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