Matched betting - how does it work?

What is Matched betting?

Matched betting is a technique that allows you to make money from the free bets and deals offered by online bookmakers. Rather than relying on luck, you cover all potential outcomes of an event by placing two bets so that you win no matter what happens. Its formulas or software calculate how much you need to stake on these bets in order to lock in a profit.

Continue reading our beginner’s guide to find out more about what matched betting is and how it works.

How does matched betting work?

Matched betting works by using a ‘back and lay betting’ technique to turn free betting credit into real money.

Lots of online bookmakers give away ‘free bets’ as part of a welcome offer, to encourage users to sign up for their site. There are also free bet deals offered to exist, customers, usually on a ‘bet £X get £X basics.

With standard betting, there’s no guarantee that any of your bets will win.

With this system, you eliminate the risk associated with every bet for a particular outcome (back bet) by placing an equivalent bet against the same outcome (the lay bet), so that you win no matter what the result. This back-and-lay betting technique allows you to make a profit* on free bets. Typically, you will end up with approximately 80% of the free bet amount, so a £30 free bet turns into around £24 profit.

You can do it yourself, but the math can be complicated and it’s easy to go wrong. That’s why most people use matched betting software like Odds Matcher, which will keep you on the right track. It finds, sorts, and ranks the best odds for you, and its built-in calculator works out how much you’ll need to bet in order to make money. We can also help you find and take advantage of the best bookmaker welcome offers and daily betting deals.

The two parts of the matched bet

Matched Betting is a game of two halves. The ‘back bet’ and the ‘lay bet’. Below is a description of each.

back bet

A back bet is a bet for an outcome to come true — you’re betting that something will happen. For example, you can back England to win their next match. You place back bets at online bookmakers like Paddy Power or William Hill.

If the outcome happens, you will win your stake x odds. This is the potential return.
If the outcome does not happen, you will lose your stake. This is the liability.

When matched betting, you place back bets with bookmakers offering some kind of ‘free bet’ deal, or one you’ve already unlocked free betting credit with.

lay bet

A lay bet is a bet against an outcome — you’re betting that something will not happen. This is what bookmakers do when they accept a back bet. For example, if you lay England to win, your bet will be successful should they lose or draw.

You can place lay bets through online betting exchanges like Betfair. These work by matching up users who want to place back bets, who act as the traditional better, with users who want to lay bets, who act as the bookmaker. The exchange makes money by charging a commission.

If the outcome happens, your lay bet is unsuccessful. Just like a bookmaker would, you have to pay the punter their winnings (stake x odds). This is the liability.
If the outcome does not happen, you win the back stake — just like the bookmaker does when you lose a back bet. You will usually pay a small commission to the betting exchange. So, the potential return on a lay bet is the back stake minus commission.

When matched betting, you place a lay bet that effectively cancels out your back bet, ensuring that you win no matter what the outcome.

How to place a matched bet?

To place a matched bet, you need to:

Find a matched betting offer that you are eligible to take advantage of. Our premium members can access a full list of welcome offers and daily betting offers.
Identify an outcome to back and lay (for example, England to win). To minimize the initial loss, the odds need to be low and close together
Sign up to/into the bookmaker site and place the qualifying bet.
Sign up to/into a betting exchange and place the corresponding lay bet.
Place your second matched bet, using your free betting credit for the back bet. This time, the back odds and lay odds need to be high and close together, to maximize profits.

Is matched betting safe? What are the risks?

Matched betting is safe and risk-free in principle — mathematically, it is guaranteed to generate profits. However, the Advertising Standards Authority (ASA) considers the claim of matched betting is 100% risk-free “misleading because, although theoretically sound, the process was open to human error”.

In other words, there is potential for you to make a mistake that will lose you money, so matched betting is not 100% without risk. There is also a small chance that the odds will change in the time between you placing your back bet and lay bet, meaning that the bet is no longer properly matched.

But that’s exactly what SystemsBets is here for: to offer tools and advice that dramatically reduce the chance of you making a mistake and give you a plan B if the odds do change at the last second. Our resources ensure that matched betting is extremely low-risk.

Can I lose money matched betting?

It is extremely unlikely that you will lose money matched betting, but it is possible if you make a mistake during the betting process. It is also unlikely but possible that the odds will change in between you placing your back bet and lay bet in a way that causes an overall loss.

If you place your matched bets correctly and the odds used to calculate them do not dramatically change for the worse in the middle of the process, the math means that you are guaranteed to make a profit.

Plus, if you are unfortunate enough to lose money on a matched bet, there’s a good chance that you’ll be able to make it back quickly.

Is matched betting free?

Lots of people believe that matched betting is worth it, as our customer reviews and matched betting success stories prove. Of course, whether it’s worth it to you depends on your personal circumstances.

All of the money that you make from matched betting is 100% tax-free and, with the right tools and resources at your disposal, the process is quick and easy. This, combined with the high profits on offer, means that you can make a relatively high hourly rate.

Over the years, we have helped thousands of people earn a second income with matched betting. We have even helped some customers make a living from matched betting.

Is matched betting legal?

Matched betting is completely legal in the UK but you do have to be aged 18 or over, just as with any other gambling activity. It is not a scam and it is not a con — it may seem too good to be true, but it’s totally legit!

Bookmakers aren’t huge fans of matched betting, because they’re not making money off you — they sometimes refer to the practice as ‘bonus abuse’.

However, it’s by no means illegal and the worst they can do as ‘punishment’ is put restrictions on your account, in a process known as gubbing.