Matched betting has become a popular term in the world of betting, often associated with “risk-free” profits. But what exactly is it, and how does it work? In this guide, we’ll walk you through the basics of matched betting, explain how it can potentially be a low-risk method for making money, and provide practical steps for getting started.
Matched betting has become a popular term in the world of betting, often associated with “risk-free” profits. But what exactly is it, and how does it work? In this guide, we’ll walk you through the basics of matched betting, explain how it can potentially be a low-risk method for making money, and provide practical steps for getting started.
What is Matched Betting?
Matched betting is a betting strategy that takes advantage of the free bets and promotions offered by bookmakers. Unlike traditional gambling, matched betting aims to eliminate the risk by covering all possible outcomes of a betting event. This ensures that, regardless of the outcome, you come away with a profit (or at the very least, break even).
Why is Matched Betting Considered “Low-Risk”?
While there’s always some level of risk involved in any financial activity, matched betting is often considered “low-risk” because it involves using mathematical calculations rather than luck. By covering all possible outcomes, you ensure that you don’t rely on one specific result to make a profit. Additionally, since you’re using free bets from bookmakers, you’re not putting your own money at risk to the same extent as traditional betting.
Key Concepts in Matched Betting
Before diving into matched betting, it’s essential to understand a few key terms and concepts:
- Back Bet: This is a bet placed on an outcome to happen. For instance, betting on Team A to win.
- Lay Bet: This is a bet placed on an outcome not to happen. For example, betting on Team A to lose (or not win) through a betting exchange.
- Betting Exchange: A platform that allows you to place lay bets, meaning you can bet against other bettors instead of the bookmaker. Popular exchanges include Betfair and Smarkets.
- Free Bet: A promotional offer from bookmakers that allows you to place a bet without using your own money.
How Does Matched Betting Work?
Matched betting works in two main steps: Qualifying Bet and Free Bet.
- Qualifying Bet:
- To qualify for a free bet, you’ll need to place an initial bet, known as a qualifying bet, with your own money.
- You place a back bet with a bookmaker (e.g., betting on Team A to win) and a lay bet on a betting exchange (e.g., betting on Team A to not win).
- By balancing the odds, you ensure that you break even or make a slight loss on this qualifying bet.
- Once the qualifying bet is settled, the bookmaker typically awards a free bet.
- Using the Free Bet:
- After receiving the free bet, you can now repeat the back-and-lay process but with a crucial difference—you’re using the bookmaker’s money, not your own.
- Place the free bet on one outcome (e.g., Team B to win) and lay it on the exchange (e.g., Team B to not win).
- This time, since you haven’t used your own funds, any winnings from the free bet are pure profit after accounting for the lay bet.
A Step-by-Step Example of Matched Betting
Let’s look at an example to clarify the process:
- Step 1: Find a Promotion – A bookmaker offers a £10 free bet if you place a £10 qualifying bet.
- Step 2: Place Your Qualifying Bet – You bet £10 on Team A to win at the bookmaker. You then place a £10 lay bet against Team A on a betting exchange.
- Step 3: Receive the Free Bet – Once your qualifying bet is settled, the bookmaker awards you a £10 free bet.
- Step 4: Place Your Free Bet – You use the £10 free bet on another team (let’s say Team B). You place a lay bet on Team B at the betting exchange to cover any losses.
- Step 5: Collect Your Profit – After both bets settle, you keep the free bet profit minus the exchange fees, typically earning anywhere from 70% to 80% of the free bet’s value.
Why Matched Betting Isn’t Considered Gambling
Unlike traditional gambling, matched betting isn’t based on chance. By placing a back and a lay bet, you’re guaranteed to cover all potential outcomes of an event, effectively eliminating the element of risk. Additionally, the use of mathematical formulas ensures that you make consistent profits over time.
Tools and Calculators for Matched Betting
Matched betting can involve complex calculations, especially when balancing odds between the bookmaker and the betting exchange. Thankfully, several tools and calculators can help streamline the process:
- Matched Betting Calculators: These tools calculate the exact lay stake you need to place on the exchange to maximize your profits. Simply input the back odds, lay odds, and commission rate, and the calculator will handle the rest.
- Oddsmatching Software: This software finds close odds between the bookmaker and the exchange, which is essential for a successful matched betting strategy.
Is Matched Betting Legal?
Yes, matched betting is entirely legal. Bookmakers offer free bets and promotions as a way to attract customers, and you’re within your rights to take advantage of these offers. However, some bookmakers may restrict your account if they identify you as a matched bettor, so it’s advisable to vary your betting activity.
Getting Started with Matched Betting: Tips for Beginners
- Start Small: Begin with easy offers and small amounts to understand the process fully before diving into larger bets.
- Use Reliable Exchanges: Stick to reputable betting exchanges like Betfair and Smarkets, which offer competitive odds and are trusted in the industry.
- Keep Track of Your Bets: Record all your qualifying bets, free bets, and lay bets to ensure you’re not missing any calculations.
- Stay Disciplined: Avoid treating matched betting as a traditional betting activity; it’s about calculated risk, not gambling.
Common Pitfalls to Avoid
- Mismatched Odds: Be cautious about odds changes between the bookmaker and the exchange. An odds fluctuation can affect the profitability of your bet.
- Failing to Account for Exchange Fees: Betting exchanges charge a commission on winnings, so remember to factor this into your calculations.
- Relying on Luck: Matched betting is a system-based approach, not a game of chance. Don’t deviate from your plan by “hoping” for a result.
Final Thoughts
Matched betting is an effective way to earn extra income using free bet promotions offered by bookmakers. It’s a system-based, low-risk strategy that, with the right tools and discipline, can consistently bring profits. For beginners, the learning curve may seem steep, but with practice, you can develop confidence and skill in this method.
By following this guide and leveraging the many tools available, you’re well on your way to exploring the world of matched betting and making the most of promotional offers.
