Arbitrage is using the difference in markets in such a way
that a risk-free profit can be guaranteed whatever the outcome
of an event.
In Sports Betting Arbitrage you take advantage
of bookmakers who have different opinions about the outcome
of a sporting event to eliminate all risks and make 100% profit.
In the financial markets like the CBOT (Chicago Board of Trade)
and its London equivalent, this may involve buying a commodity
or financial instrument in one market and simultaneously selling
the same commodity or financial instrument at a higher price on
a different market to ensure a risk-free profit.
The exporters do arbitrage to fix the currency exchange rates.
In Sports Betting Arbitrage you profit from bookmakers having
different opinions about the outcome of a sporting event.
Your Sports Betting Arbitrage bets win regardless of the outcome
of the event without the need for any expert knowledge of sports
or sports betting.
Take a look at a couple of examples below to appreciate how
a Sports Betting Arbitrage Transaction works.
Take Wimbledon tennis 2001 Ladies Singles Match between
Lindsay Davenport and Kim Clijsters.
The compilers at Victor Chandler saw Davenport at odds of 2/5,
and the compilers at Tote saw Clijsters at 3/1.
At 2/5, the total amount to invest in Davenport to return $100
was $71.42 [$100 X 5/(2 + 5)]. At 3/1, the total amount to invest
in Clijsters to return $100 was $25 [$100 X 1/(3 + 1)].
The total investment required to return $100,
regardless of whichever player wins, is $96.42 [$71.42 + $25.00]
for a guaranteed profit of $3.58
[$100.00 - $96.42].
You pay $96.42 and get back $100 in a short time.
A Guaranteed Risk-Free Sports Betting Arbitrage Profit of 3.58%
In Less Than 90 Minutes!
And the loophole exists for all Sports betting arbitrage traders:
you could be online sports betting in UK Pounds, Japanese Yen,
Russian Roubles or US$!
Now, is 3% return worth your while? How about $450 a week doing two
Sports betting arbitrages a day with $1,500 you can't loose?
What is your Bank's Savings Account rate?
Another arbitrage example.
In the week of October 7th
there were many Arbitrage situations (arbs) between
3% and up to 9.17% for the European Championship Qualifiers played
that week. Several of these arbs lasted until close to kick-off
time because there was so much betting activity on the games.
An example of one Sports betting arbitrage trade that week is
Poland vs Latvia. You could bet:
Latvia at 15.0 with Bet365
The Draw at 7.0 with Luvbet.
Poland at 1.35 with several bookmakers.
The opinions were:
Latvia win or draw: 22.049% [15.033% + 7.016%].
Poland win: 77.951% [100% - 22.049%].
By splitting your total stake Poland 77.951%,
Draw 15.033% and Latvia 7.016% you would guarantee
a profit of 5.23% regardless of the outcome of the match.
Here's how I got 5.23% (105.23% - 100%):
Poland 77.951% x 1.35 = 105.23%
Draw 15.033% x 7 = 105.23%
Latvia 7.016% x 15 = 105.23%