Sports Arbitrage (arb) – is a mathematically calculated arbitrage situation allowing making stakes on all the opposing outcomes of the competition in different bookmakers. You earn in spite of the outcome! Thus, sports betting turn into investment method with a yield more than 10% of the amount invested on a monthly basis. This is a sports arbitrage betting.
Which Leads to Arbitrage Situations in Sports? Bookmakers are in constant competition towards one another. Therefore, quite often they set overstated odds. As a result, sports betting arbitrage (arbs) arise.
We scan such odds, and then applying mathematical formulas to calculate arbitrage situations (arb), report where and how much you need to bet in order to get a guaranteed profit.
Let's suppose, there are 2 basketball teams “Leicester Warriors” and “Westminster Warriors” that will play in a few days.
Our arbitrage betting service using a specially developed scanning technology does the following steps:
Let’s imagine that after scanning bookmakers on the match Leicester Warriors vs Westminster Warriors, our service has selected the following odds for further calculations:
Then, we defined the amount of inversion (L) of the bookmakers’ results:
Therefore, B1 would get 5.6% of the revenue regardless of the outcome, and B2 – 5.1%. Our aim is to identify the odds at different bookmakers in the way the inversion of the opposing results to be less than 1. That is the only way, sports arbitrage situations (arbs) may appear.
1. Let’s count the inversion of results (L) for B1 and B2. Imagine that we bet on the win of Westminster Warriors at B1 and on Leicester Warriors at B2. In conclusion, we get:
Thus, the inversion sum of the opposing stakes is less than 1. It means that these two bookmakers with corresponding odds are suitable for arbitrage betting and we continue our calculations.
2. Let's calculate how much and where we should bet. On condition that we have $1000 for our bets, the stake amount (V1) at B1 and the stake amount (V2) at B2 would be the following:
Therefore, we have to bet $268.30 on the win of Westminster Warriors at B1 and $731.70 on the win of Leicester Warriors at B2 to get a guaranteed income.
3. Now let's calculate the amount of guaranteed profit (P)
of the total sum of stakes placed at the bookmakers in both cases.
In case Westminster Warriors wins:
In case Leicester Warriors wins:
As we can see from the calculations, having $1000 in total, we are guaranteed to get $1046.33 in spite of the outcome of the match. In this case, net profit is $46.33 or 4.42% of the total sum of stakes.
In such a way, you have earned your first real money using arbitrage betting! Just imagine how much you may earn on arbitrage situations if betting up to 10 times a day during a month!