What is sports arbitrage?
A sports arbitrage
situation occurs when bookmakers' prices differ enough that we can back all possible outcomes of an event and guarantee a risk-free profit
no matter what the outcome.
Sports arbitrage opportunities are often refered to as "arbs
A real example of sports arbitrage:
Match: Igor Andreev vs Richard Gasquet
Time: 6-Jan-08 9:53 pm
Total Stake: £1000
Bookmakers: Pinnacle & Ladbrokes
|Bet for Igor Andreev
Possible Winnings: £1585.92
|Bet for Richard Gasquet
Possible Winnings: £1584.00
This is a real example of an arb we found out on January 06, 2008. This arb alert was sent out to all our members.
A correctly staked investment of £1000
guarantees a return of £1584
whatever the outcome of the match.
profit due to discrepancies in the bookmakers' odds guaranteeing a 58.49%
profit on your investment!
The above information tells us that Igor Andreev and Richard Gasquet are competing in a Tennis Match. It also tells us that Pinnacle Sports
have odds of 3.360 for Igor Andreev to win the match, and Ladbrokes
have odds of 3.000 for Richard Gasquet to win the match.
By applying a simple mathematical formula to those odds, we are able to calculate that we can cover both possible outcomes of the bet and make a guaranteed 58.49% 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. £472 invested on Igor Andreev returns £1585.92 and £528 invested on Richard Gasquet returns £1584.00.
£472 x 3.360 = £1585.92
£528 x 3.000 = £1584.00
Risk Free Profit = £584
Our members have access to several arbitrage calculation tools which automatically calculate the size of the arbitrage opportunity AND how much to stake on each selection!
Click here for more info.