MAIN TITLE - Make Money Online
Article Title Sports Arbitrage
Sports Arbitrage
Sports arbitrage is a system which exploits the fact that different bookmakers will give you different odds on the outcome of various sporting events. In the main the difference between the odds offered by different bookmakers is not particularly significant but there are occasions where odds are offered by different bookmakers which means that if you bet on every possible outcome you are guaranteed to make a profit and therefore make a profit on every transaction.
It sounds too good to be true doesn’t it but I can guarantee that with all the sporting events in the world and all the bookmakers currently operating in the world an arbitrage opportunity will present itself at least once a day and it is not uncommon to have 10 – 20 opportunities present themselves in a day.
In the subsequent pages we will give you an overview of the methods used to become a profitable arbitrage winner with links to various sites which will help you in your quest for that arbitrage opportunity. Don’t worry if you have never even placed a bet in your life we will introduce you to the odds bookies will offer you and show you how to use these odds to your advantage.
Let’s look at the potential profits
Typical opportunities in the arbitrage method of betting will produce profits in the order of 4.5% per transaction. This means that for every 100 units you stake (be they dollars or pounds) you have a guaranteed return of 104.5 units. Before you run away thinking that’s not a very good return bear in mind that that return is guaranteed you will see that with a structured betting plan this modest return can eventually return massive profits. I will demonstrate how this actually works further down the page but the principle revolves around a story my father used to tell me as a child.
There was once a Chinese emperor who loved to play the game of chess he played the game so often with great success that eventually he believed he could play anyone in the kingdom without fear of losing. He issued a challenge to all comers and the only stipulation was that whoever presented themselves to play the emperor must wager something of significant value and in return the emperor would wager his kingdom. Many challengers came and played chess against the emperor all of whom lost which resulted in the emperor becoming extremely rich but non the less bored. One day a peasant turned up at the emperors palace to challenge the emperor and the palace guards took one look at his ragged clothing and were in the process of sending him on his way when by chance the emperor himself walked past the gate and called out to the peasant what on earth could you possibly wager which I would want. The peasant bower his head and replied excuse me your majesty but I would wager my house, it is all I have in the world but I am so confident that I can beat you I am willing to place the wager. The emperor was enraged, the arrogance of this small uneducated peasant who dared to declare that he could beat the emperor at chess. The emperor shouted “I accept your challenge, guards have him cleaned up and delivered to my quarters”. The guards complied with the emperors request and the peasant was delivered to his quarters. The game commenced and after a long drawn out event the peasant triumphed. The emperor was gob smacked and realised what a mistake he had made – he had just lost his kingdom. The peasant head still bowed spoke quietly to the emperor. “Your majesty I am but a simple man and I have no need of your kingdom, all I need in this life is a roof over my head and food to put on the table. If it pleases your majesty I will settle for a small amount of rice and all I ask is that we use the chess board to dictate the amount of rice you are to give me.” The emperor was delighted with the proposal and asked how the chess board would be used. The peasant stated that all he required was one grain of rice on the first square of the board and that this be doubled on the second square and again on the third until all 64 squares were used. The emperor was very pleased he said that he would do this thinking how stupid the peasant was to give up a kingdom for a bag of rice he had indeed proved that ultimately he was the cleverer of the two. He ordered his guards to bring rice from the kitchen to comply with the peasants request and started to place the rice on the chessboard and placed :-
Square 1 1 grain
Square 2 2 grains
Square 3 4 grains
Square 4 8 grains
Square 5 16 grains
Square 6 32 grains
Square 7 64 grains
Square 8 128 grains
By the time they had reached square 32 the emperor realised that the peasant was indeed the cleverer of the two as he needed 2,147,483,648 to fill the square and the final square would require 9,223,372,036,854,780,000 grains of rice and with a grain of rice weighing 20 mg this meant that the emperor needed 184467 metric tonnes of rice on that one square alone.
We digress
If we use the same principle applied to our arbitrage betting and we make a modest 3% profit on each bet and place all of our winnings on the next bet we will for a 100 unit bet get the following returns.
Bet 1 103 units
Bet 2 106.09 units
Bet 3 109.27 units
Bet 4 112.55 units
Bet 5 115.93 units
Bet 6 119.41 units
Bet 7 122.99 units
Bet 8 126.68 units
By bet number 25 we have doubled our money and you only have to apply the chess board principle above to see what you could achieve.
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