Every now and again the internet throws up some real loopholes. One in particular stands out, and if you're interested in making some fast pocket money then you should check out the concept of sports arbitrage in more detail. Imagine being able to bet on both sides of a sporting event - so that no matter what the result you walk away with a guaranteed profit.

Well that's exactly what arbitrage betting is about - and thanks to the hundreds of bookmakers that continue to offer online services this arbitrage loophole is growing with more and more opportunities to claim guaranteed cash every day. The best thing is that it's completely legal, simple to do and once you start chances are you'll get hooked with the guaranteed and fast money that's there for the take.

Before you get too excited lets take a moment to understand the mechanics behind arbitrage - an age old concept that has been used by banks and businesses for centuries. Arbitrage simply is an inconsistency in the market - where for example due to global differences the same product or service is charged at different prices in different locations.

How is this applied to sports betting? An arbitrage opportunity is formed when different bookies have different prices for different outcomes in a particular sporting event. The bottom line is that we can place bets to cover both (all) outcomes with different bookmakers and get back more than we invested each and every time. It's important to remember that this is a form of investment and not betting - with arbitrage you know your exact return before a ball is kicked or a stroke played. It's also important to remember that arbitrage returns are generally low - on average yielding 5% to 10% per play - but for an investment that lasts for a couple of hours, that's pretty good.

An Example Let's take a look at a real life example of sports arbitrage. During a ladies single game at Wimbledon between Davenport and Clijsters the bookies Tote and Victor Chandler priced the outcomes differently:

Tote - 3/1 Clijsters to win
Victor Chandler - 2/5 Davenport to win

To return £100 with Victor Chandler above we would have to invest £71.42. To return £100 with Tote for a Clijsters win we would have to invest £25. Our total collective investment would be just £96.42 - and whoever won the game our total return would be £100. We have just made a guaranteed 3.58% on your money within 2 hours. You can find plenty of these arbitrage opportunities each and every week.

How did we calculate how much investment is required to return £100 (including our stake)? We do a very simple calculation:
1. With V.C. the odds for a Davenport win was 2/9. To find out how much you need to invest to return £100 simply make the following calculation:

(a) 2/5 + 1 = 1.4
(b) 100/1.4 = £71.43

With Tote the odds for a Clijsters win was 3/1. To return £100 (including our stake):

(a) 3/1 + 1 = 4
(b) 100/4 = £25

Total Investment (£71.43 + £25) = £96.42
Total Return REGARDLESS OF OUTCOME £100
Total Profit (£100 - £96.42) = £3.58 risk free.

Do you see the beauty of this? No matter who won the game you are guaranteed a certain profit of 3.58% - this is a very good return for an investment lasting just a couple of hours that carries absolutely zero risk. The good news is that arbitrage opportunities like these happen many times on a daily basis, and with a little practice you can find quite a few to invest in as you please.

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ABOUT THE AUTHOR

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