This article finds that arbitrage was possible in 2 of the 175 Japanese thoroughbred races even after taking account of (a) the size of the minimum betting unit and (b) the negative effect of arbitrage on the odds. The guaranteed profits in these two races were 5,120 yen (about US$64) and 340 yen.
EdelmanD. C.O’BrianN. R. (2004). Tote arbitrage and lock opportunities in racetrack betting. European Journal of Finance, 10, 370–378.
2.
FranckE.VerbeekE.NüeschS. (2012). Inter-market arbitrage in betting. Economica, 80, 300–325.
3.
GrammM. C.McKinneyN.OwensD. H. (2012). Efficiency and arbitrage across parimutuel wagering pools. Applied Economics, 44, 1813–1822.
4.
HauschD. B.ZiembaW. T. (1990a). Locks at the racetrack. Interfaces, 20, 41–48.
5.
HauschD. B.ZiembaW. T. (1990b). Arbitrage strategies for cross-track betting on major horse races. Journal of Business, 63, 61–78.
6.
MarshallB. R. (2009). How quickly is temporary market inefficiency removed?Quarterly Review of Economics and Finance, 49, 917–930.
7.
MoriS.HisakadoM. (2009). Emergence of scale invariance and efficiency in a racetrack bettingmarket. http://arxiv.org/abs/0911.3249 (arXiv:0911.3249v1).
8.
PopeP.PeelD. (1989). Information, prices and efficiency in a fixed-odds betting market. Economica, 56, 323–341.
9.
RosenbloomE. S. (1992). Picking the lock: A note on “locks at the racetrack.”Interfaces, 22, 15–17.
10.
ShinH. S. (1993). Measuring the incidence of insider trading in a market for state-contingent claims. Economic Journal, 103, 1141–1153.
11.
ThalerR.ZiembaW. (1988). Parimutuel betting markets: Racetracks and lotteries. Journal of Economic Perspectives, 2, 161–174.
12.
VlastakisN.DotsisG.MarkellosR. N. (2009). How efficient is the European football betting market? Evidence from arbitrage and trading strategies.Journal of Forecasting, 28, 426–444.