Sports Arbitrage Strategy
What is Arbitrage
It is a strategy that is based simply on arbitrage and we are NOT those who invented it. You don't need any tips or information to use the sports arbitrage strategy, and it can be on any type of sport or not a sport event.
You need to have an account at Betfair or any other betting exchange, which has both the BACK and LAY option, so you can be the bookie as well. You should also have accounts on normal bookies like William Hill or Bet365.
Type of Bet: Australia Melbourne Formula 1 Pole position.
On Betfair the BACK/LAY for M.Schumacher to WIN Pole Position are: BACK 2.00 / 2.10 LAY.
So for if you BACK $1 on M.Schumacher you will have a $1 profit if he wins Pole and a $1 loss if he does not. If you LAY $1 on M.Schumacher you will have a $1 profit if he does not win Pole and a $1.1 loss if he does win.
Now lets say Expekt might be paying for the same bet, Australia Melbourne F1 To Win Pole Position M.Schumacher 2.75! (Yes I saw it happen many times!)
So you now do the following steps:
1.You BET say $1000 at EXPEKT on M.Schumacher to WIN Pole Position at 2.75
2.You LAY the same amount, $1000 at BETFAIR on M.Schumacher to WIN Pole Position at 2.10.
- Outcome 1.M.Schumacher does not win Pole Position:
At Betfair we have a Profit of $1000 and at EXPEKT we have a Loss of $1000. So TOTAL P&L is $1000-$1000=0
- Outcome 2.M.Schumacher wins Pole Position:
At Betfair we have a Loss of $1100 and at EXPEKT we have a Profit of $1750. So TOTAL P&L is $1750-$1100=$650
So on Outcome 1 we have no profit or loss, and on Outcome 2 we have a profit of $650. There is no other possible outcome. So risk free bet, risk free income!
A price gap should exist between the price you LAY and the price you BET on. This is does not happen very often but it DOES happen. You have to have setup accounts on a number of bookies so you can take advantage of any good situation that will arise.
A lot of bookies charge when you transfer funds into their account or even charge when you have a profit, so you should be aware exactly what these charges are so you can identify if this strategy is profitable. As I mentioned above this strategy can be used in on any type of bet on any type of event sport, non-sport, soccer or not. Its just that simple with the existence of BACK/LAY betting sites.
We hope you will find this helpful and make the most out of it.