This can be calculated using the simple formula P = 1/odds. The ability to calculate and understand implied probabilities is crucial to grasp the intricacies of arbitrage betting. Equipped with the knowledge of implied probabilities, bettors can then identify two-way arbitrage opportunities.
The process is as follows: Using an odds comparison site such as Oddschecker, find a sporting event which offers two outcomes. Find the highest odds available for each outcome from two different bookmakers. Calculate whether the odds represent an arbitrage betting opportunity.
Arb betting is actually not the most profitable way to bet. If there is an arbitrage opportunity, yes it's guaranteed profit, but you are sacrificing the full value of the sharp side of the bet. One side of an arb is always better than the other, and it's not that hard to figure out which side is the sharp side.
While arbitrage is generally seen as legal and as contributing to market efficiency and liquidity, arbitrage activities are subject to regulations and securities laws to ensure compliance with market rules and prohibit illegal activities such as insider trading and market manipulation.