How Does Matched Betting Work: Explanations and Examples
The matched betting strategy is one of the least risky tactics for punters. In short, this approach allows you to cover all the possible outcomes of the event to get free bets from a bookie at virtually no cost. First, you make a back bet (for instance, on the victory of Belgium) at the bookmaker that offers free stakes to newcomers who have made at least one wager. Then, you place a lay bet (for example, against the victory of Belgium) using a chosen betting exchange.
Therefore, a back bet ensures you receive a free bet from a gaming operator regardless of the match’s result. A lay bet acts as insurance and allows you to break even. In any case, you grab a free bet to further profit from using the matched betting approach. Let’s discuss this wagering approach in more detail.
A Step-by-Step Guide for Matched Betting
So, look at the following instructions to clarify all the nuances:
- Opt for an appropriate bookmaker. First, find out whether a platform has an international licence. Second, check whether a bookie offers a free bet along the following lines: bet 10 pounds and get a free bet of 10 pounds. For example, HexaBet is a Curaçao-licensed bookmaker that frequently grants free bets to newcomers. Furthermore, you can redeem HexaBet no deposit bonus codes to receive exclusive prizes, with a free stake among them.
- Find a reliable betting exchange. What are betting exchanges? They are services where you bet against other people rather than a bookmaker. One side proposes a bet, acting as a bookie, and the other can accept it. Figure out what commission the selected website charges. The two most sought-after betting exchanges are Betfair and Smarkets. Remember that some exchanges offer 0% commission as a sign-up offer to new members.
- Compare odds. To decide on a profitable competition, you must analyse the odds provided by a bookie and a betting exchange. It’s recommended to switch to decimal odds on the operator’s site since most betting exchanges use this format by default. Take in mind that betting exchanges usually charge a modest commission of about 1-2%. Your task is to find an event that guarantees you minimal loss. Ideally, the odds between your back and lay bets must be as close as possible. Professional punters traditionally rely on online calculators and even multifunctional matched betting services to instantly find the most beneficial event to bet on. Their examples include OddsMonkey’s OddsMatcher and Profit Maximizer.
- Make your back and lay bets. Place a bet at a bookie in accordance with welcome offer conditions. For instance, deposit £10 and bet this amount on Belgium’s victory to qualify for a £10 free wager. Then, navigate to the betting exchange and bet £10 against Belgium’s success.
- Grab your free bet and repeat the process. Even if you lose a small amount of about £0.5-0.6 due to the exchange’s fees or coefficients’ fluctuations, it’s definitely worth it. In the above example, you receive a free bet of £10. You can again use the best matched betting offers to lock in your profit. Place your free wager at high coefficients to increase your potential earnings. If your back bet loses, you actually don’t lose your money since you’ve used a free stake rather than your funds. Thus, you gain a profit generated by a lay bet. In the reverse situation, you lose your money but return your free bet + extra profit and stay in the black.
Let’s say you wager £10 (your free bet) on the fact that Belgium will defeat their rival with the 6/4 (2.5) odds. You also place a lay bet of £10 with the 5/2 (3.5) odds. If Belgium wins, you lose your lay bet but get a payout of £25 from your bookie (your free bet amount + net profit).
If Belgium fails, you lose your back bet but win £35 (your lay bet amount + net profit) at the betting exchange.
How does matched betting work in terms of your risk? It would be unfair to claim that this method ensures the complete safety of your money and steady income. First, the coefficients can alter in the period between you making your back and lay bets. Second, if you compare the bookie’s and betting exchange’s odds by yourself, there’s a risk of mistake. Hence, it’s better to employ wagering-related calculators and specialised online services for matched betting.
Is Matched Betting Prohibited?
Some beginners rack their brains about the question: Is matched betting legal? Yes, this lucrative strategy is legal in the United Kingdom and isn’t considered a scam.
As for bookmakers, they won’t block your account if you place opposite bets at betting exchanges rather than on other bookies’ websites. Actually, it’s problematic for operators to track your activities in this case. However, don’t overlook the general rules established by any operator. You’re not allowed to create multiple accounts at the same bookmaker. Nevertheless, there are no limitations on the number of bookmakers you can sign up with.