Arbitrage betting

Betting arbitrage is an example of arbitrage arising on betting markets due to either bookmakers’ differing opinions on event outcomes, or errors. When conditions allow, by placing one bet per each outcome with different betting companies, the bettor can make a profit regardless of the outcome. Mathematically, arbitrage occurs when there are a set of odds, which represent all mutually exclusive outcomes that cover all state space possibilities of an event, whose implied probabilities add up to less than 1.