Let’s consider a simple example of arbitrage betting in a tennis match.

Suppose you have Player A and Player B competing in an upcoming match. Two different bookmakers are offering the following odds for each player to win:

Bookmaker 1:

• Player A to win: Odds 1.8
• Player B to win: Odds 2.2

Bookmaker 2:

• Player A to win: Odds 2.1
• Player B to win: Odds 1.9

The discrepancies in the odds offered by the two bookmakers create an arbitrage opportunity.

Now, let’s suppose you have $100 to bet. You split your total stake into two, betting on both outcomes in such a way that you guarantee a profit irrespective of who wins.

Here’s how you can do it:

• Bet $52.63 on Player A with Bookmaker 2 at odds of 2.1.
• Bet $47.37 on Player B with Bookmaker 1 at odds of 2.2.

Let’s work out the potential outcomes:

• If Player A wins, your return with Bookmaker 2 will be $52.63 * 2.1 = $110.52. Since you bet a total of $100, your net profit would be $110.52 – $100 = $10.52.
• If Player B wins, your return with Bookmaker 1 will be $47.37 * 2.2 = $104.21. Deducting your total stake, your net profit would be $104.21 – $100 = $4.21.

As you can see, no matter who wins the match, you make a profit. This is the essence of arbitrage betting – you’re playing the system to lock in a profit no matter what the outcome of the event is.

Please note that while this method does offer guaranteed returns if done correctly, it requires precise calculations, quick decision-making, and generally a large bankroll. There is also the risk of being detected by bookmakers and having your account limited or closed.