What is Arbitrage?
Arbitrage is the well-known financial practice of taking advantage of a price differential between two markets. In the case of sports arbitrage, the "prices" are the odds, and the markets are two or more competing bookmakers. The situation occurs when both bookmakers have sufficiently high odds on each side of an event. You place a bet on both participants, covering all outcomes of the game, and are guaranteed a profit. Arbitrage situations happen regularly, thousands of times every day. Sports arbitrage betting on the internet has existed for almost a decade, and a lot of people have made (and still are making) good money from it.

Example
The easiest way to explain an arbitrage is in a 2-way event such as a tennis event, a basketball event (with no draw option) or an ice hockey event that includes potential overtime and penalties. In all of these events, there will be a winner.
Letís take an example of a 2-way hockey game. Team1 at Bookie1 has the odds 2.05 and Team2 at Bookie2 has the odds 2.05. If you bet $500 at both bookies, you win $25 regardless of which team wins. You have placed a total of $1000 and you will get $1025 back, no matter the outcome of the event.

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