How to Calculate Sports Betting Arbitrage
Convert decimal odds into implied probabilities and add the results to determine whether an arbitrage exists.
The basic arbitrage calculation uses the formula 1 divided by the decimal odds for each outcome. These implied probabilities are then added together. For example, in a three-outcome football market the calculation uses the best available home, draw and away odds. When the combined result is below 1, or below 100%, the prices indicate a theoretical arbitrage opportunity.
How to Calculate Sports Betting Arbitrage
The basic arbitrage calculation uses the formula 1 divided by the decimal odds for each outcome. These implied probabilities are then added together. For example, in a three-outcome football market the calculation uses the best available home, draw and away odds. When the combined result is below 1, or below 100%, the prices indicate a theoretical arbitrage opportunity.
View Real Arbitrage Calculations