Past statistics, information from the odds market and Machine Learning algorithms are used to detect prices that are overvalued compared to what they should be.
The number 1 reason why it is possible to make money in sports betting is because the odds market is totally inefficient due to the fact that there are many bookmakers offering different prices for the same event.
Ex: Andy Murray’s victory: Bet365 (1.8), William Hill (1.85), Bwin (1.82), Betway (1.93)…
These prices are misaligned at certain times when a lot of liquidity enters in favor of a player and the price of the opposing player rises to acquire an overvalued value compared to what it should be, giving rise to an investment opportunity.