In traditional betting, earning profits relied on the bettor’s ability to forecast the outcome. ‘Matched Betting’ is believed to be a ‘no loss’ scenario, but the bettor needs to get it right.
What actually is matched betting?
It is a technique of squeezing the free bets, which are offered by bookmakers to lure new gamblers. It is their promotional campaign, where they offer bettors free bet, for example, ‘bet $10 with us, and gain $10 free bet’.
How matched batting works?
In matched betting there are two kinds of bet, which allow this technique to work.
‘Backing’ or ‘winning’ bet – You predict a specific outcome will be true. For example, I bet Team-A will win, which is a winning or backing bet. If your prediction comes true then you earn the winnings. However, if Team-A draw or lose then you lose the stake. Backing bet can be placed at any bookmaker.
‘Lay’ bet – You bet against a specific outcome. For example, ‘I bet Team-A will not win’. If Team-A lose or draw then you win. Lay betting can be placed at betting exchange only.
Matched betting means cancelling the risk on backing bet at the online bookmaker and staking yourself at same odds (laying bet), at the betting exchange. In short, you are ‘matching’ or ‘challenging’ your own bet.
When you sign up with a new bookie then you may be offered free bet of same amount with which you signed up. Now make your first bet in such a way that you hardly lose cash.
For example, you signed up with Oddsmonkey and deposited $10 in the account. You lost $2 on the initial bet and got rewarded or qualified for $10 free bet. Now you have the total of $18.
Now, you create a second bet using the $10 free bet got from the bookmaker. (Now you can withdraw the $10 free bet amount)
If you place $10 free bet on Team-A to beat Team-B at 4/1 and to mitigate the risk you match same bet with Team-B on betting exchange as lay for $40.
- If Team-A wins you earn $50. On the other hand, you lose the lay bet on betting exchange means you lose $40. Therefore you earned $50 – $40 = $10 profit.
- If Team-A draw or lose, then you lose the $10 free bet but the ‘lay’ bet wins on betting exchange meaning you win $10. Thus you will be left with $10 profit.
Thus, you can see in both outcomes, either win or lose you get guaranteed profits of $10.
How much can you earn?
With each matched betting, you earn significantly, but remember the betting exchange will charge 5% commission on winnings. However, a small loss is made on qualifying bet because each website differs in odds slightly. However, this difference can get recouped using the free bet. In theory, matched betting looks riskless because you are protecting your cash by betting against and for in the same event. Risk comes, when errors are made, so first understand the working of matched betting properly. It differs a lot from conventional betting technique. It takes time to get familiar with the promos and offers but you will certainly earn profits, be patient!