Zero-Risk Sports bets (Arbitrage Betting)

Risk free betting or arbitrage betting is the act of placing bets on all possible outcomes of a sporting event so that you lock in a definite profit at the end of that event.

Risk Free Betting

Real Life Example Arb:
SAT FEB 13TH 2010

NBA ALL STAR DUNK COMPETITON : WINNER

Shannon Brown » -250 1.40 (BWin) » £781.25 returns £1,093.75
Any Other » +400  (5.00)  (BET365) » £218.75 returns £1,093.75
Total profit : 9.375% (£93.75)

A correctly staked investment of £1,000 guarantees a return of £1,093.75 no matter which Player wins the competition. That’s £93.75 profit due to discrepancies in the bookmakers’ odds guaranteeing a 9.375% profit on your investment!

The above information tells us that a betting market exists for which player will win the 2010 NBA slam dunk competition.

It also tells us that BWin have odds of  -250 (1.40) for Shannon brown to win and that Bet365 have odds of +400 5.00 for any other player to win.

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 9.375% 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. £781.25 invested on Shannon Brown returns £1,093.75 and £218.75 invested on “any other player” returns £1,093.75.

£781.25 x 1.40 = £1,093.75
£218.75 x 5.00 = £1,093.75

Risk free profit = £93.75

2 Responses

  1. I would very much like to find out more about this form of betting. Please send me additional info.
    Kindest Regards, John

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