Matched Betting

Matched betting is a process by which bettors use free bets  and incentives from bookmakers to win money regardless of the outcome.  Most betting sites that serve the Indian market have a welcome offer that can come in the form of a bonus or free bets. In matched betting, you use the free bet and back any other outcome with a bookmaker or betting exchange. Matched betting using an exchange involves laying the back bet to win risk-free money.  You will forfeit a small percentage of the winnings because the lay odds are bigger than the back odds.

The process of matched betting has a number of steps:

• Place the qualifying bet with a fixed odds bookmaker.
• Lay this outcome with a betting exchange.
• Receive the free bet.
• Use the qualifying bet to back an outcome with a fixed odds bookmaker.
• Lay this outcome with a betting exchange.

If the bets are placed at the right time, it is possible to win up to 70% of the bonus with no risk. You are not relying on the result of a bet and mathematically you must win. An important tool is a matched betting calculator which works out the appropriate lay bet based on the back bet. There are now a number of websites that feature the odds calculator that is useful for matched betting.

Bookmakers who provide free bets as part of the welcome offer are aware of matched betting. There is history of closed accounts when the bookmaker sees evidence of bonus abuse. Many bettors open a betting account to claim the welcome offer and use free bets in this way. The amounts are reasonably small but matched betting could have a short-shelf. However, there are any number of fixed odds bookmakers who offer free bets for new customers.

Here is a practical example of the process of matched betting when the bonus is ₹5,000 and the offer is a 100% matched bet bonus. Let’s assume the minimum deposit is ₹1,000 and the bonus s is for up to ₹5,000. The value of the qualifying bet is the same as the free bet bonus. So, here is another step-by-step guide with figures which shows how to do matched betting:

• Deposit ₹5,000.
• If required place a qualifying bet.
• Calculate the lay stake based on the odds.
• Receive the free bet but lose ₹7,000 in the process.
• Use the free bet to place a ₹5,000 back bet.
• Calculate the lay bet using the calculator
• Place the lay bet and enjoy risk-free wins.
• Assume the free bet does not return the stake.
• Win about 70% of the free bet value without risk.

The growth of betting exchanges at the start of the century has simplified this process. However, bear in mind that timing is key and the opportunity to place a risk-free will not last long. As more bettors adopt the method the potential profit from matched betting may fall. The relative odds could change which means some free bets will produce a much smaller certain profit.

In theory, sports betting is illegal in India. However, residents can open accounts with offshore betting sites. These bookmakers are licensed and regulated so they provide a legal sports betting service. That means you can legally place back and lay bets to qualify for free bets and do the same with the free bets to ensure a profit regardless of the outcome. The process involves placing a back bet and a lay bet with a betting exchange or using two bookmakers to earn the free bet. Matched betting is legal with offshore fixed odds bookmakers and betting exchanges.

Even though matched betting is legal, some bookmakers close accounts or limit stakes when there is evidence of matched betting. The bookmaker says this is bonus abuse which is not permitted in line with the operator’s Terms & Conditions. Initially, before matched betting was widely used, bookmakers did not monitor the use of free bets. The early matched betting experts could make a substantial amount of money legally. However, bookmakers are aware that free bets are being used in this way and will close accounts or limit the stake to a small amount.

The key to the matched betting process is backing one outcome with a fixed odds bookmaker and laying the same outcome with a betting exchange. The back bet is usually at bigger odds than the lay bet so you lose a small percentage. The matched betting calculator works out the stake based on the current back and lay odds. Betting odds are constantly fluctuating in response to market forces. If there is lay pressure on a price, that price will increase which takes up more of the potential profit. In this case, you don’t lose money as such but win less.

There is one scenario in which it is possible to lose money when matched betting. You place the back bet and then place another back bet with the betting exchange in error. The counter bet should be a lay bet but placing another back bet means you are vulnerable to the bet losing. Conversely, the back bet wins so both bets win but that is betting on the result rather than ensuring a profit regardless of the outcome. Mistakes can be costly with matched betting because the situation cannot be retrieved once the bets have been placed.

The matched betting activity grew in response to bookmaker free bets and bonuses. You place a qualifying back bet and counter lay bet to qualify for the free bet. The free bets are matched with a lay bet on a betting exchange. It is not possible to win risk-free money matched betting when bookmakers are not offering a free bet or other incentive as part of the welcome offer. Backing and laying the same outcome has the potential for losing money because the back odds are lower than the lay odds. Markets can fluctuate quickly so the loss potential increases.

The matched betting concept works when bookmakers offer bonuses as a part of the registration process. These bonuses can be no deposit, match deposit and match bet. If the welcome bonus features enhanced odds there is potential for a small win by taking advantage of the back odds being bigger than the lay odds. However, the potential profit is a much smaller proportion of the stake compared to matched betting that utilises free bets. Offers that include extra places on horse race bets do provide the potential for small wins.

Matched betting involves placing two bets on the same outcome so the stakes increase. Let’s assume you place a back bet on an outcome that is 2/1 (3.0). To simplify the example, we will assume the same back and lay price but in reality the back price is smaller than the lay price. Here are the bets:

• ₹5,000 back bet at 2/1 for a stake of ₹5,000.
• ₹5,000 lay bet at 3.0 for a liability of ₹10,000.

Therefore, you need ₹1,500 to place the qualifying back and lay bet. The bigger the lay price, the more money you require to complete the first stage of the process. The betting accounts will be updated before the second stage but if the free bets replicate the qualifying bets, you will need a total balance with the bookmaker and betting exchange of the same ₹1,500. The size of the initial betting bank depends on the back and lay stake and odds.