Matched Betting: How It Works
Matched betting is a technique that uses the free bet promotions provided by betting companies and covers each bet with a lay bet at an exchange. Virtually every bookmaker uses these offers to attract new customers into placing bets on their platforms. For instance, you might come across promotions like 'Bet £25 with us, and we'll grant you a £25 free bet!'
Understanding the Mechanics of Matched Betting
Even if you're not familiar with all the betting terminology, the steps outlined below will guide you through matched betting. What's crucial is understanding two types of bets that enable matched betting to function:
1. 'Back' Bet:
This involves betting in favor of a particular outcome. For instance, 'I bet England will win' constitutes a backing bet. If the prediction comes true, you win the bet along with the winnings. If England loses or draws, you lose your stake. You can place a back bet at various bookmakers like Bet365, Paddy Power, William Hill, Betfred, and others.
2. 'Lay' Bet:
This is a bet against a certain outcome. For example, 'I bet England will not win' is a lay bet. You win the bet if they lose or draw. Lay bets can only be placed on betting exchanges such as Smarkets, Matchbook, or Betfair.
Matched betting operates by offsetting the risk of the 'back' bet at online bookies by placing a bet against yourself with the same odds (known as 'laying' a bet) on a betting exchange. In simpler terms, you're 'matching' your bet.
After your initial or 'qualifying' real money bet, the bookmaker rewards you with a free bet. This is where the profit comes in. To put it simply, you repeat the process: bet using the free bet and then place a lay bet. Regardless of the outcome, you'll end up making a profit.
Calculating Potential Profit
With each matched bet, you can expect to retain up to 95% of the free bet amount as profit. This is because betting exchanges usually deduct a commission of 5% on your winnings. There might be a slight loss on the qualifying bet due to minor variations in odds across different websites. However, this small loss will be recovered when you use the free bet.
In the following steps, I'll illustrate how you can make a profit from a £30 free bet using a real-life example. By replicating these steps across numerous free bet offers throughout the year, you could potentially amass thousands of pounds.
It's important to note that any earnings from the gambling industry are currently exempt from taxation.
Risk Management and Considerations
Matched betting is accessible to everyone, and the back and lay bets cover each other, so the main risks are mistakes: a wrong stake, a missed lay, or odds that move. However, errors can lead to risks, so it's crucial to cross-check everything and meticulously follow the steps. Occasionally, free bets might not be immediately credited, so patience is key, along with adhering to the terms of the promotions.
Once you've grasped the process and achieved success by following the steps outlined above, you can continue matched betting with various other online bookmakers offering free bet promotions. This approach can serve as an avenue to supplement your income. Furthermore, it's worth knowing that depositing funds on gambling websites won't affect your credit rating.