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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:
Sport: Tennis

Match: Igor Andreev vs Richard Gasquet

Time: 6-Jan-08 9:53 pm

Total Stake: £1000

Profit: 58.49%

Bookmakers: Pinnacle & Ladbrokes Outcome 1 Outcome 2 Profit
Bet for Igor Andreev

Bookmaker: Pinnacle

Odd: 3.360

Stake: £472

Possible Winnings: £1585.92 Bet for Richard Gasquet

Bookmaker: Ladbrokes

Odd: 3.000

Stake: £528

Possible Winnings: £1584.00
£584.90

NOTE: 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.
That's £584 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

sports arbitrage