How to Identify Profitable Arbitrage Opportunities

Hey Spro Fam,

Welcome back! This week, we’re diving into one of the most crucial aspects of sports arbitrage betting: identifying profitable opportunities. Whether you’re new to the game or refining your strategies, knowing how to find and execute these opportunities is key to your success.

Plus, we’re bringing you some weekly NFL Survivor picks to give you that extra edge in your pool. Let’s make the most of this week’s matchups and maximize those profits. Let’s get into it!

Step 1: Understand Arbitrage Betting

Arbitrage betting involves placing bets on all possible outcomes of an event using different bookmakers to guarantee a profit, regardless of the result. This strategy relies on discrepancies in odds between different bookmakers.

Example:

• Bookmaker A offers +115 on Team X.

• Bookmaker B offers -106 on Team Y.

Step 2: Calculate the Arbitrage Percentage and Profit

To determine if you've found a profitable arbitrage opportunity, use this formula:

Arbitrage Percentage Formula:

• Arbitrage % = [1 / (Odds 1)]+ [1 / (Odds 2)]

Convert American odds to decimal odds:

• Odds 1 (+115): 

  Decimal odds = 1 + (115/100) = 2.15

• Odds 2 (-106):

  Decimal odds = 1 + (100/106) = 1.94

Calculate the arbitrage percentage:

• Arbitrage % = (1/2.15) + (1/1.94) = 0.9793

Since 0.9793 is less than 1, this is a profitable arbitrage opportunity.

• Arbitrage Profit % = [(1 - Arbitrage %) / Arbitrage %] x 100 

• Arbitrage Profit % = [(1 - 0.9793) / 0.9793] x 100 = 2.07%

So, the profit percentage for this arbitrage opportunity is 2.07% on your initial investment.

Step 3: Calculate the Profit

To calculate the stakes for each outcome in an arbitrage bet, use the following formula:

• Stake = [(1 / Odds) / Arbitrage %] x Total Investment

Assume you want to invest $1,000. To calculate the stakes:

• For Team X:

  Stake 1 = [(1 / 2.15) / 0.9793] x $1,000 = $475.01

• For Team Y:
  Stake 2 = [(1 / 1.94) / 0.9793] x $1,000 = $525.00

With these stakes, you will get a guaranteed profit. That profit is calculated as follows:

• If Team X Wins:

  Payout = Stake 1 x Team X Odds = $475.01 x 2.15 = $1,026.27

  Profit = Payout - Total Investment = $1,026.27 - $1,000 = $26.27

• If Team Y Wins:

  Payout = Stake 2 x Team X Odds = $525.00 x 1.94 = $1,026.27

  Profit = Payout - Total Investment = $1,026.27 - $1,000 = $26.27

In both scenarios, the profit is $26.27, which represents a 2.07% return on the total investment of $1,000. Now imagine this—$26.27 may seem small, but this kind of profit can be made in a matter of seconds, every day. If you consistently earn $26.27 each day, over the course of 365 days, that adds up to nearly $10,000 in income. With the right approach and consistency, these small, guaranteed wins can build up to something substantial!

Step 4: Simplify the Process with Spro

Calculating arbitrage opportunities manually can be time-consuming, but with Spro, our Odds Comparison Tool does the heavy lifting for you! It identifies and calculates arbitrage opportunities in real time, ensuring you never miss a profitable bet. Check it out here: Spro

AG Bets: NFL Week 2 Survivor and Betting Insights

AG Bets has been dropping free NFL straight picks and parlays in our Discord, and he's on fire this season with a perfect 5-for-5 record so far!

For Week 2’s NFL Survivor Pick, AG Bets recommends:

Top Pick: Baltimore Ravens

• Why: The Ravens face a Raiders team that struggled offensively in Week 1. They couldn’t get anything going, and we’re confident the Ravens will capitalize on that at home. After a tough prime-time loss to Kansas City, we expect Baltimore to bounce back strong in Week 2.

Backup Option: Dallas Cowboys

• Why: The Cowboys are up against a Saints team that performed well last week, with their new offensive coordinator bringing the best out of Derek Carr and Alvin Kamara. However, we anticipate the Saints hitting some roadblocks as they face this formidable Dallas defense. Combine that with Dak Prescott and the Cowboys' potent offense, and we think Dallas will be too much for the Saints to handle this week.

AG Bets for the Week

Stay tuned to our Discord or watch for the next newsletter for AG Bets' predictions on the upcoming games this week. As the odds for the rest of the week's matchups are released, you'll be the first to know by joining our Discord community!

Stay in the Game

As the season unfolds, keep refining your strategies and tapping into the free resources Spro offers. Together, we’ll beat the books and maximize our profits. Stay connected, stay informed, and let’s all make a shit ton of money!

Cheers,

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