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For an individual bookmaker, the sum of the inverse of all outcomes of an event will always be greater than 1.
9 − 1 = 0.
Since most bookmakers offer these bonuses this can potentially be exploited to harvest the sign up bonuses.
While making deposits is usually made easy and quick, making withdrawals often requires proof of identity in the form of passport/driver license, copies of which need to be shared with the bookmakers via fax/email or even postal mail, which causes additional identity theft risks.
Due to the large number of accounts that have to be created and managed (containing personal details such as email, name, address, e-wallet, credit card information and often even a copy of the bettor's ID/passport or driver's license), arbitrage traders are highly susceptible to cyber fraud, such as bank account theft.
For example, the appropriate stakes may be incorrectly calculated, or be placed on the wrong "legs" of the arb, locking in a loss, or there may be inadequate funds in one of the accounts to complete the arb.
This usually leads to unprofitable arbing as the most successful bookmakers are so adept at identifying arbitrage bettors.
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