| Risk free betting, or arbitrage betting, is the act of | | | | dunk competition. It also tells us that BWin have odds |
| placing bets on all possible outcomes of a sporting | | | | of -250 (1.40) for Shannon brown to win and that |
| event so that you lock in a definite profit at the end of | | | | Bet365 have odds of +400 5.00 for any other player |
| that event. This is great for sports fans to make some | | | | to win. |
| extra cash on the side with 0% risk. | | | | By applying a simple mathematical formula to those |
| Risk Free Betting: Real Life Example: | | | | odds, we are able to calculate that we can cover both |
| SAT FEB 13TH 2010 NBA ALL STAR DUNK | | | | possible outcomes of the bet and make a guaranteed |
| COMPETITON: WINNER | | | | 9.375% return on our investment. |
| - Shannon Brown » -250 1.40 (BWin) » £781.25 | | | | We would invest our money in proportion to the odds |
| returns £1,093.75 | | | | on each possibility. The amount to invest on each |
| - Any Other » +400 (5.00) (BET365) » £218.75 | | | | outcome is calculated using another simple formula. |
| returns £1,093.75 | | | | £781.25 invested on Shannon Brown returns |
| - Total profit: 9.375% (£93.75) | | | | £1,093.75 and £218.75 invested on "any other |
| A correctly staked investment of £1,000 guarantees | | | | player" returns £1,093.75. |
| a return of £1,093.75 no matter which Player wins | | | | £781.25 x 1.40 = £1,093.75 |
| the competition. That's £93.75 profit due to | | | | £218.75 x 5.00 = £1,093.75 |
| discrepancies in the bookmakers' odds guaranteeing a | | | | Risk free profit = £93.75 |
| 9.375% profit on your investment! | | | | It is very hard to find games with more then a 2-3% |
| The above information tells us that a betting market | | | | ROI. |
| exists for which player will win the 2010 NBA slam | | | | |