Matched Betting: A Comprehensive Guide

What is Matched Betting?

Matched betting is a technique that allows individuals to profit from the free bets and promotions offered by online bookmakers. It is widely regarded as a risk-free method of making a guaranteed profit, as it involves covering all possible outcomes of a sporting event by placing multiple bets. By doing so, the bettor can ensure that they make a profit regardless of the result of the event. This is not gambling in the traditional sense, as the element of chance is removed through a calculated, mathematical approach.

The core principle of matched betting is to cancel out the risk of a regular bet by betting on all outcomes of an event across a bookmaker and a betting exchange. This process is typically done in two stages: the qualifying bet and the free bet. The initial qualifying bet is placed to unlock the free bet offer from the bookmaker, and it is designed to have a minimal loss. Once the free bet is obtained, it is used to guarantee a profit.

How It Works

Matched betting relies on two fundamental types of bets: a back bet and a lay bet.

• A back bet is the most common type of bet, where you are betting for a specific outcome to happen. For example, you might back a specific horse to win a race. If the horse wins, you win the bet.

• A lay bet is the opposite of a back bet. When you place a lay bet, you are betting against a specific outcome. For example, you might lay a horse to win a race, meaning you win your bet if any other horse wins. Lay bets are placed on a betting exchange, where you are essentially acting as the bookmaker.

To successfully execute a matched bet, you need an account with at least one bookmaker that is offering a promotion, and an account with a betting exchange. The process is as follows:

1. The Qualifying Bet: To receive a free bet from a bookmaker, you usually need to place a real-money bet first. This is known as the qualifying bet. To eliminate the risk, you place a back bet on a specific outcome with the bookmaker, and a lay bet on the same outcome on a betting exchange. The goal of the qualifying bet is to lose as little as possible (usually a few pence) while unlocking the free bet.

2. The Free Bet: Once you have received your free bet, you repeat the process. You place a back bet using the free bet on a specific outcome with the bookmaker, and a lay bet on the same outcome on a betting exchange. Because you are not using your own money for the back bet, the calculations will ensure that you make a profit regardless of the outcome.

Example

Let's walk through a hypothetical example to illustrate the process. Imagine a bookmaker is offering a "Bet £10, Get £30 in Free Bets" promotion for new customers.

Step 1: The Qualifying Bet

First, you need to place a £10 qualifying bet. Let's say you decide to bet on a football match between Team A and Team B.

• Back Bet: You place a £10 back bet on Team A to win at the bookmaker with odds of 2.0.
• Lay Bet: On a betting exchange, you place a lay bet against Team A to win. The lay odds are 2.02. A matched betting calculator will tell you the exact stake to place for your lay bet to minimize your loss. In this case, let's say the lay stake is £9.90.

Now, let's look at the possible outcomes:

• If Team A wins: Your back bet wins, and you get £20 back from the bookmaker (£10 stake + £10 winnings). Your lay bet loses, and you lose £10.10. Your net position is -£0.10.
• If Team A does not win (loses or draws): Your back bet loses, and you lose your £10 stake. Your lay bet wins, and you win your £9.90 stake. Your net position is -£0.10.

In either scenario, you have a small, calculated loss of £0.10, but you have now unlocked a £30 free bet.

Step 2: The Free Bet

Now you use your £30 free bet to guarantee a profit. It's generally better to use free bets on outcomes with higher odds.

• Back Bet: You place your £30 free bet on a different event, for example, a horse to win a race at odds of 5.0.
• Lay Bet: You place a lay bet against the same horse on a betting exchange. The lay odds are 5.1. The matched betting calculator will tell you the lay stake required to lock in a profit. Let's say the lay stake is £23.53.

Let's look at the possible outcomes:

• If the horse wins: Your back bet wins. Since the stake was a free bet, you get £120 in winnings (£30 x 4.0). Your lay bet loses, and you lose £96.47. Your total profit is £23.53.
• If the horse does not win: Your back bet loses, and you lose nothing since it was a free bet. Your lay bet wins, and you win your £23.53 stake. Your total profit is £23.53.

As you can see, you have made a guaranteed profit of £23.53 from the £30 free bet, regardless of the outcome.

Why It Matters

Matched betting is significant for several reasons. Firstly, it provides a systematic and reliable way to make money from sports betting, which is an industry often associated with high risk and uncertainty. For individuals who are disciplined and methodical, it can be a consistent source of supplementary income.

Secondly, it empowers the average person to take advantage of the highly competitive nature of the online betting industry. Bookmakers are constantly vying for customers by offering increasingly generous promotions. Matched betting allows individuals to capitalize on these offers without succumbing to the risks of traditional gambling.

Finally, while it is not a get-rich-quick scheme and requires time, effort, and an initial investment, matched betting can be a valuable tool for building a bankroll. The profits generated can be used for other forms of investment, personal savings, or even as a starting point for more advanced betting strategies. It demystifies the world of betting and provides a practical application of mathematical principles in a real-world context.