Matched Betting is an exciting method by which you can truly beat the bookies, and it is becoming increasingly popular.
Using a mixture of your own stake and free bet offers from popular betting sites and bookmakers, you can turnover a profit whatever the outcome of the event you’re betting on. Matched betting is relatively simple to get into, but in order to do so you must understand how it works.
As well as understanding how matched betting works and how it takes advantage of free bets and bonuses, it is also important to understand the wider betting market, as well as developing a basic grasp of matched betting terminology.
If you’re not sure of the difference between a mug bet and being grubbed, then we’ve got you covered with our handy guide to matched betting.
Arbitrage Bet
An arbitrage bet is a bet where the back odds are higher than the lay odds. That means they’re the sort of bet which will make a profit without a free bet being involved. They’re usually found in an event which has just two outcomes, such as a tennis match. Betting sites usually factor in an edge whereby the combined outcome of such an event is in excess of 100%, thus giving them a profit. An arbitrage bet can be found where the contrasting outcomes come in at less than 100%, usually by comparing bookmakers, in which the bettor makes a profit.
Be careful with these bets, bookies are on the lookout for bettors taking advantage on a regular basis and you risk having your account suspended if you are regularly placing ‘Arbs’.
Example: Roger Federer is playing Novak Djokovic. Paddy Power’s odds are Federer 1.300 and Djokovic 3.930, combined 102.4% market. Betfair’s odds are Federer 1.420 and Djokovic 2.900, 104.9% market. Betting on Federer with Betfair and Djokovic with Paddy Power would give a 95.9% market, or a 4.1% profit margin.
Back Bet
This is a standard bet in which you place money on the outcome of a certain event with a betting company or bookmaker.
Example: Roger Federer to beat Novak Djokovic in straight sets.
Bet
Placing a bet is the process of backing an outcome, or non-outcome, against a bookmaker. The bookmaker will offer odds on a certain event, which dictate the level of reward you will get should it happen. If it does not happen, the bookmaker keeps your stake money.
Betting Exchange
A betting exchange such as Betfair is a platform on which the customers bet against each other, rather than the bookmaker. A betting exchange is a vital part of the matched betting process.
Bonus
A bonus is where a bookmaker will add funds to your account allowing you to place a bet. Usually, it is used as an incentive to lure in new customers and works in a similar way to free bets, giving the customer a risk-free opportunity to place a bet. It is another key element of matched betting.
Example: You place a bet with a £5 stake and the bookmaker doubles your stake to £10.
Bookmaker
The bookmaker takes bets, works out odds and pays out any winnings. There are several well-known physical bookmakers such as William Hill, Coral and Ladbrokes, as well as those who have an online presence such as bet365, Paddy Power and Sky Bet.
Commission
Commission is the small fee usually paid to a betting exchange. Betfair usually charge 5%, with others such as Smarkets opting for 2%. This is typically paid by the winning side of the bet.
Decimal Odds
Decimal odds are a method of displaying odds in a way in which also includes the stake. If a bookmaker shows odds of 1.75, then a successful bet with a stake of £1 would see £1.75 returned, with a profit of 75p. If fractional odds were 2/1, the corresponding decimal odds would be 3.00.
Deposit
The deposit are funds you place with a betting site or betting exchange with which to place your bets. This is your stake money which will get you started.
Free Bet
A free bet is another fundamental aspect of matched betting. They can take several forms, free bets with no deposit or free bets which you must qualify for. Most betting sites offer free bets as an
incentive to new customers, but they can be used to conduct matched betting and make significant profits.
Example: Paddy Power offers a £20 risk-free, free bet to new customers.
Gubbed/Gubbing
The term gubbing, or being gubbed, is when a betting site restricts an account from taking advantage of free bets or bonuses, or closes it completely. This might be because they have identified your account as a matched betting account, or in other words only placing bets when there are free offers or bonuses. It also occurs when customers have more than one account with a company, but in a family member’s name.
Lay Bet
A lay bet is a bet placed with a betting exchange on a certain event or outcome not happening.
Example: Roger Federer not to win against Novak Djokovic.
Liability
Your liability is the amount of money you have at risk in any one bet. In the event of having a free bet on one side of your matched bet, your liability would be your stake on the opposite bet.
Liquidity
Liquidity is the maximum amount of money a customer can place on any given market with a betting exchange. There can only be a matched bet if there is money waiting on the other side of the bet.
Matched Bet
A matched bet is a bet which has been placed with a traditional bookmaker and has been matched with a betting exchange.
Example: On one hand you’ve backed Manchester United to win against Liverpool with a betting company, on the other hand you’ve backed Manchester United not to win against Liverpool with a betting exchange. That is a matched bet.
Market
A market is a selection of outcomes on any one event. For a football match it might be ‘Match Result’, with the three possible outcomes being selections within that market. In a horse race, the market would be the race outcome, with the different odds being the selections within that market.
Mug Bet
A mug bet is a bet placed with a betting company that does not draw on any free bets or bonuses. It is a standard bet on the outcome of an event that is often placed to avoid your account being gubbed, to give the account some ‘normal’ activity as well as possible matched betting activity.
Example: Manchester United to beat Liverpool 1-0 with Bruno Fernandes to score.
Qualifying Bet
A qualifying bet is a bet that must be placed using your own stake before you qualify for a free bet or for bonus bets on certain accounts. Most free bet offers require a qualifying bet, it’s a way of drawing customers in with a stake of their own before the betting company offers something back.
Odds
Odds, offered on the outcome of events, are the ratio of your stake to potential winnings. They’re usually shown in fraction format, something like 3/1 or 11/8. They can also be shown as decimals, which is common for betting exchanges.
Overlay
A traditional matched bet is achieved by placing a balanced stake with both a bookmaker and a betting exchange. An overlay is where you place a higher lay stake to either lose less money, or win more with the exchange.
Stake
Your stake is the amount of money you place on a bet.
Stake Returned (SNR)
Stake returned is where the money you place on the bet is returned as well as your winnings. This usually refers to free bets or bonuses rather than standard bets, as they may not return your stake along with your winnings.
Stake Not Returned (SR)
This is where your stake is not returned as part of a free bet or bonus bet.
Underlay
A traditional matched bet is achieved by placing a balanced stake with both a bookmaker and a betting exchange. The opposite of overlay, an underlay is where you place a lower stake with the exchange to either lose less money, or win more with the bookmaker.
Unmatched Bet
An unmatched bet is where your bet has not been accepted by the betting exchange. This could be because another customer has got in there first. It might also be that part of your lay bet has been accepted, but the exchange is waiting for further customers to lay the opposite bet, allowing yours to be accepted in full.
Wagering Requirement
A wagering requirement is a multiplier that denotes the number of times you must play through a bonus before extracting any winnings. For instance, 5x wagering requirement would mean you have wagered the combined amount of your deposit and bonus five times before you could take out any winnings. It isn’t uncommon to see 40x wagering requirement.