How to Do Matched Betting Using a Betting Exchange
Matched betting is a way to make money from free bets. Many people use this method with betting exchanges. It is not gambling, because it removes the risk. This system is popular in the UK and other countries. Knowing how this strategy works can help bettors increase their profits.
What Is Matched Betting?
Matched betting is a way to use free bets from bookmakers. Bookmakers give free bets to new or regular players. With this matching system, a bettor uses the free bet and covers all results. This means they cannot lose money.
A bettor needs to use a bookmaker and a betting exchange and place two bets. One back bet on the bookmaker, for example on a team to win, and one lay bet on the betting exchange against that team winning.
Using a betting exchange is important because lay betting is not available on bookmakers. A betting exchange lets people bet against each other using back and lay bets on the same event and market.
How Does Matched Betting Work?
Matched betting works by placing both a back and a lay bet on the same event. When both bets are placed correctly, it does not matter who wins. The result is always the same. There is no loss, but a small profit from the free bet.
In order to apply this strategy a bettor needs to:
- open an account with a bookmaker and register also on a betting exchange.
- get a free bet from the bookmaker. A free bet can be for example a 10€ free bet.
- Find a sport event and a market and place a back bet using the bookmaker.
- For the same event and market place a lay bet against the back bet and use the betting exchange.
- Use the free bet to repeat the process and make constant small profits.
Betting exchanges usually take a small commission from the winnings. This is often 2% to 5%. Bettors doing matched betting must always check the commission and include it in the plan.
Is Matched Betting Legal?
Matched betting is legal. It is not cheating. Bookmakers know about it. Many people use matched betting to earn extra money. However, bookmakers can stop giving free bets to players who do it too much.
Matched betting is legal, but it is important to be careful. Bettors must be honest, and must not use fake names or accounts. There are always good ways to avoid being limited while still applying this strategy.
Matched Betting Example
Free bet from the bookmaker: 10€
Betting exchange commission: 5%
Football match between Team A and Team B.
Back bet on the bookmaker= the free 10€ bet on Team A to win at odds of 4.0.
Lay bet on the exchange: 7.75€ on Team A not to win at odds of 4.0.
Possible outcomes
Team A wins
If Team A wins, then the back bet on the bookmaker wins and the lay bet on the exchange loses.
The bookmaker pays = 10€ x (4.0 – 1) = 30€ net profit.
The lay bet has to pay = 7.75€ x (4.0 – 1) = 23.25€ liability
Total profit = 30€ – 23.25€ = 6.75€
Team A does not win (wither Team B won or the game ended in a draw)
If Team A does not win, then the bookmaker gives nothing, the free bet is lost, and the lay bet on the exchange wins.
Lay stake = 7.75
Add commission = 5% of 7.75 = 0.3875€
Total profit = 7.36€
From this example is shown that no matter who wins, there is always a profit from the free bet.
Why Use Betting Exchanges?
It is necessary to use betting exchanges because lay betting is only available there. It cannot be done through bookmakers. Placing lay bets is very important in matched betting. Without a lay bet, the result is not risk-free.
The most popular betting exchange is Betfair but is not accessible by all people around the world as it does not operate in a list of countries. For similar experience bettors can use white label Betfair exchanges like Winfair24, Orbit Exchange and others.
Different exchanges charge different commission rates but the idea is the same. People can bet against an outcome which is needed for matched betting.
Matched Betting Tools
Matched betting is easier with tools. Bettors can find online odd matchers that help them find the best back and lay bets. They can also use calculators to find the right amount for the lay stake in order to secure a profit. And they can use trackers to check their performance and have a clear view of their profits. Some of these tools are free while others ask for a monthly fee.
Can You Lose Money From Matched Betting?
Matched betting is low-risk but as always with betting mistakes can happen. If the wrong lay amount is used or if the bet is placed late, there can be a small loss. That is why it is important to double check everything before placing bets.
Also, bettors need to start with small amounts until they get familiar with the strategy. This helps them learn how to apply the system without the stress of big money and without making mistakes that would cost them large sums.
In Short
Matched betting is a simple way to make extra money using free bets. Many people in the UK and elsewhere use it safely. Betting exchanges are important because they allow bettors to place lay bets. With some care and simple tools, this system can bring regular profits.