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Matched betting is a technique that uses bookmaker promotions to guarantee profit by placing opposing bets—backing an outcome at a bookmaker and laying (betting against) the same outcome at a betting exchange. This eliminates risk while extracting real cash from free bets and bonuses. Unlike gambling, matched betting is mathematical arbitrage on promotional offers with zero variance when executed correctly.
Matched Betting
Matched betting turns bookmaker generosity into guaranteed profit. When a bookmaker offers you a free bet, they expect you to gamble it. Instead, you use mathematics to extract 70-95% of that free bet's value as real cash. By simultaneously backing an outcome at a bookmaker and laying it at an exchange, you create a risk-free position where the free bet converts to cash profit regardless of whether Team A or Team B wins.
Table of Contents
- How Matched Betting Works
- The Mathematics
- Qualifying Bets vs Free Bets
- Step-by-Step Example
- Finding Matched Betting Opportunities
- Advanced Techniques
- Common Mistakes
How Matched Betting Works {#how-it-works}
Matched betting exploits the difference between bookmaker odds and exchange odds to guarantee profit from promotional offers.
The Core Concept
| Component | Where | Purpose |
|---|---|---|
| Back bet | Bookmaker | Bet FOR an outcome to win |
| Lay bet | Exchange | Bet AGAINST that same outcome |
| Result | Either way | Same return regardless of outcome |
Why This Works
Exchanges let you "lay" bets—act as the bookmaker. By backing at a bookmaker and laying at an exchange:
- If outcome wins: Bookmaker pays you, you pay exchange
- If outcome loses: You keep lay stake, lose back stake
When odds are close, these cancel out (small loss called "qualifying loss").
With free bets, you keep profit because you're not risking your own money on the back bet.
The Two Types of Matched Bets
1. Qualifying Bet (uses real money)
2. Free Bet (uses bonus credit)
The Mathematics {#math}
Lay Stake Formula (Normal Bet)
Where:
- Back Stake = Amount bet at bookmaker
- Back Odds = Bookmaker's decimal odds
- Lay Odds = Exchange's decimal odds
- Commission = Exchange fee (typically 2-5%)
Lay Stake Formula (Free Bet - Stake Not Returned)
Free bets return profit only (not stake), so we use (Back Odds - 1).
Qualifying Loss Formula
Free Bet Profit Formula
Qualifying Bets vs Free Bets {#qualifying-vs-free}
Qualifying Bet Strategy
Goal: Minimize loss while unlocking free bet
| Factor | Optimal Choice | Why |
|---|---|---|
| Odds | 2.00-3.00 | Balance between close odds and low loss |
| Event | High liquidity | Football, tennis—tight spreads |
| Timing | Not near start | Avoid odds movement |
Qualifying Loss Example:
| Bookmaker | Exchange | Loss |
|---|---|---|
| Back $50 at 2.00 | Lay $51.02 at 2.02 | $1.53 |
You "pay" 50 free bet.
Free Bet Strategy
Goal: Maximize extraction rate
| Factor | Optimal Choice | Why |
|---|---|---|
| Odds | 4.00-6.00 | Higher odds = higher extraction |
| Event | Same as always | High liquidity events |
| Match-up | Odds as close as possible | Minimize exchange liability cost |
Free Bet Extraction Example:
| Back Odds | Lay Odds | Extraction Rate |
|---|---|---|
| 3.00 | 3.05 | ~65% |
| 4.00 | 4.05 | ~74% |
| 5.00 | 5.05 | ~79% |
| 6.00 | 6.10 | ~82% |
Higher odds = higher percentage of free bet converted to cash.
Step-by-Step Example {#example}
Offer: "Bet 50 Free Bet"
Step 1: Qualifying Bet
Find match with close odds:
- Bookmaker: Team A at 2.50
- Exchange: Team A lay at 2.54
Calculate lay stake:
\text{Lay Stake} = \frac{50 \times 2.50}{2.54 - 0.02} = \frac{125}{2.52} = $49.60| Outcome | Bookmaker | Exchange | Net |
|---|---|---|---|
| Team A wins | +$75 | -$76.38 | -$1.38 |
| Team A loses | -$50 | +$48.61 | -$1.39 |
Qualifying loss: ~$1.39
Step 2: Free Bet (Stake Not Returned)
Find higher odds match:
- Bookmaker: Team B at 5.00 (free bet)
- Exchange: Team B lay at 5.10
Calculate lay stake:
\text{Lay Stake} = \frac{50 \times (5.00 - 1)}{5.10 - 0.02} = \frac{200}{5.08} = $39.37| Outcome | Bookmaker | Exchange | Net |
|---|---|---|---|
| Team B wins | +$200 | -$161.42 | +$38.58 |
| Team B loses | $0 | +$38.58 | +$38.58 |
Free bet profit: $38.58
Total Result:
- Qualifying loss: -$1.39
- Free bet profit: +$38.58
- Net profit: $37.19 (guaranteed)
Finding Matched Betting Opportunities {#finding}
Types of Offers
| Offer Type | Example | Typical Profit |
|---|---|---|
| Welcome bonus | Bet 50 free bet | $30-45 |
| Reload offer | Bet 10 free bet | $6-8 |
| Accumulator insurance | Free bet if one leg loses | $15-30 |
| Price boost | Enhanced odds on selection | $3-10 |
| Money back | Refund if X happens | Variable |
Where to Find Offers
| Source | Pros | Cons |
|---|---|---|
| Bookmaker emails | Personalized offers | Easy to miss |
| Bookmaker site | All available promos | Time-consuming to check |
| Matched betting sites | Aggregated offers + calculators | May have subscription fee |
| Forums/communities | User-discovered offers | Quality varies |
Evaluating Offer Value
Quick calculation:
If result is positive, offer is worth doing.
Advanced Techniques {#advanced}
Accumulator Matched Betting
Some offers require accumulators (multi-bets):
Strategy: Lay each leg individually
| Leg | Back Odds | Lay Odds | Individual Loss |
|---|---|---|---|
| 1 | 1.50 | 1.52 | $0.65 |
| 2 | 1.80 | 1.83 | $0.82 |
| 3 | 2.00 | 2.04 | $0.98 |
| Total | $2.45 |
This locks in small loss regardless of accumulator result, unlocking offer.
Extra Places Each-Way
When bookmakers offer extra places on horse racing:
Normal: Top 3 pay out as place Offer: Top 4 pay out as place
If your horse finishes 4th:
- Back bet loses (win part)
- Back bet wins (place part at extra place)
- Lay bet wins (you laid to win only)
Result: Potential to win both bets ("middles").
Price Boost Exploitation
Enhanced odds offers often create value:
| Normal Odds | Boosted Odds | Exchange Lay | Value |
|---|---|---|---|
| 2.50 | 3.50 | 2.55 | **+50 |
Back the boost, lay at normal exchange odds, pocket difference.
Retention Offers
After initial sign-up offers dry up, bookmakers send retention offers to active accounts:
| Activity Level | Typical Offers |
|---|---|
| Low (occasional bets) | Weekly free bet emails |
| Medium (regular bets) | Enhanced accumulators |
| High (frequent activity) | VIP bonuses, cash rewards |
Strategy: Maintain activity at minimum cost to receive retention offers.
Exchange Selection {#exchanges}
Major Betting Exchanges
| Exchange | Commission | Liquidity | Best For |
|---|---|---|---|
| Betfair | 5% (can reduce to 2%) | Highest | UK/EU sports |
| Smarkets | 2% | Good | Lower commission |
| Betdaq | 2-5% | Lower | Alternative markets |
| Matchbook | 1.5-2% | Moderate | US sports |
Commission Impact
\text{Extra Cost per $100 liability} = \text{Commission} \times $100| Commission | Cost per $100 | Annual Impact (at $10k turnover) |
|---|---|---|
| 2% | $2 | $200 |
| 5% | $5 | $500 |
Lower commission exchanges save significant money over time.
Common Mistakes {#mistakes}
Mistake 1: Gubbing Trigger Behavior
Gubbing = Account restrictions from bookmaker
| High-Risk Behavior | Lower-Risk Alternative |
|---|---|
| Only betting on promos | Mix in recreational bets |
| Always maximum stake | Vary stake sizes |
| Instant withdrawals | Leave funds, bet occasionally |
| Only high odds (arb-like) | Vary odds selection |
Mistake 2: Incorrect Lay Stake Calculation
Wrong formula = unexpected loss
| Error | Consequence |
|---|---|
| Using normal formula for free bet | Over-laying, reduced profit |
| Forgetting commission | Under-laying, exposure risk |
| Wrong odds format | Completely wrong stakes |
Solution: Use calculator, double-check before placing.
Mistake 3: Odds Movement
Placing back bet, then odds move before lay bet:
| Scenario | Result |
|---|---|
| Lay odds shortened | Higher liability needed |
| Lay odds drifted | Lower profit or loss |
| Odds moved significantly | May need to abort |
Solution: Place both bets quickly, use liquid markets.
Mistake 4: Breaking Offer Terms
| Common Terms | Mistake |
|---|---|
| Minimum odds 2.00 | Betting at 1.95 |
| Single bets only | Placing accumulator |
| Specific sports | Betting wrong sport |
| Time limits | Missing deadline |
Solution: Read terms completely before betting.
Matched Betting Bankroll Management {#bankroll}
Starting Bankroll Allocation
| Component | Purpose | Amount |
|---|---|---|
| Bookmaker deposits | Back bets | 50% of bankroll |
| Exchange balance | Lay bets + liability | 50% of bankroll |
Example with $500 Bankroll
| Account | Balance | Purpose |
|---|---|---|
| Bookmaker A | $100 | Welcome offer |
| Bookmaker B | $100 | Welcome offer |
| Bookmaker C | $50 | Smaller offer |
| Exchange | $250 | Lay bets for all |
Recycling Your Bankroll
After completing offers:
- Withdraw bookmaker balance
- Move to next bookmaker
- Keep exchange funded for liability
Larger bankroll = more offers simultaneously.
Profit Tracking {#tracking}
Essential Metrics
| Metric | Calculation | Purpose |
|---|---|---|
| Gross profit | Sum of all free bet profits | Total earned |
| Qualifying losses | Sum of all qualifying losses | Cost of accessing offers |
| Net profit | Gross - Qualifying | Actual earnings |
| Hourly rate | Net profit / Hours spent | Efficiency measure |
Tracking Spreadsheet Columns
| Date | Bookmaker | Offer | Qual Loss | Free Bet | Profit | Time | Notes |
|---|
Related Calculators
- Matched Betting Calculator - Calculate lay stakes
- Free Bet Calculator - Free bet extraction
- Arbitrage Calculator - Compare to standard arbs
Frequently Asked Questions
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Evgeny Volkov
Verified ExpertOver 10 years developing software for the gaming industry. Advanced degree in Mathematics. Specializing in probability analysis, RNG algorithms, and mathematical gambling models.
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