What is matched betting?

Matched betting means placing a bookmaker’s promotional free bet on a selection and, at the same time, laying (betting against) the same selection on a betting exchange. Because the two bets point in opposite directions, the match result matters much less, and what’s left is some part of the free bet’s value, minus costs.

You’ll meet the term mostly in the UK and Ireland, where exchanges and promotions are both common. Most of the US has no exchange.

This site doesn’t list promotions, bonus codes or sign-up offers, and this entry isn’t a how-to. It’s here so you know what people mean when they use the phrase.

Why it goes wrong

Start with the risks, because the sales pitch for matched betting usually leaves them out.

• Human error. Lay the wrong selection, mistype the odds or stake, or let the price move between the two bets, and you’re holding an ordinary bet with a large liability on the exchange.
• Terms and conditions. Free bets come with rules: minimum odds, excluded markets, expiry dates, and usually a qualifying bet with your own money first. Miss one and the offer is void, while your real-money bets still stand.
• Account limits. Bookmakers restrict or close accounts that only ever bet on promotions. That is within their terms.
• Cash tied up. An exchange holds your full liability until the event settles, which can be several times the size of the free bet.
• Costs. Exchange commission, the gap between back and lay prices, and the usual small loss on the qualifying bet all come out of the result.
• It keeps you opening gambling accounts. That isn’t harmless for everyone. If you’ve ever struggled to stop, this isn’t a safe hobby.

How the mechanism works

A free bet normally pays winnings only, not the stake. If the selection wins, the bookmaker pays out and the exchange lay loses. If it doesn’t win, the free bet is gone and the lay wins. When the lay stake is sized to the back odds, the two outcomes leave a similar figure, which is always well below the face value of the free bet, and lower again after commission and the cost of qualifying.

So the number on the offer is not the number you keep, and none of it is certain. The arithmetic only holds if every bet is placed correctly, at the expected prices, within the offer’s terms.

Related ideas

Arbitrage uses the same back-both-sides logic without a promotion. Hedging is the general idea of betting against a position you already hold.