Section 1 – Matched Betting Basics
If you’re new to the world of betting bookmakers and betting exchanges then in this section you will learn all the basic terms and ideas to confidently make your first successful matched bet.
HOW MATCHED BETTING WORKS
Matched betting is the process of taking advantage of promotions offered by bookmakers and turning them into profit.
You’ve probably seen adverts both online and on TV, like “Deposit $100 and we’ll give you a $100 bonus bet!”
‘Matched betting’ literally is matching bets to cancel out the risk. Using a simple mathematical equation, you bet for and against the same outcome to occur. No matter the result of the game, one of your bets will win, and the other will lose.
The simple strategy of using bonus bets given by the bookmaker means you are virtually guaranteed to profit every time. This is because when you’re matched betting, only one part of your bet costs you money, so you’ll make the same profit regardless.
LET’S BREAK THIS DOWN TO IT’S SIMPLEST PARTS
Bookmakers are companies that accept bets from the public. For example, TAB, Bet365, William Hill & Ladbrokes.
HOW A BET WORKS WITH A BOOKMAKER – A BACK BET
Whenever you place a bet with a bookmaker you are backing a certain outcome to happen. That is why we call it a back bet.
The odds set by the bookmakers reflect the likelihood of something happening. Odds of 5.00 would mean the bookmakers will pay in return to you 5.00 times your stake if your bet wins.
The higher the odds are the less likely something is to happen.
The amount you are betting.
“I stake $10 for Tigers to beat the Cats”.
The market is the specific part of an event you are betting on. Examples of markets are:
‘First Goalscorer’ – where you might select Jack Riewoldt to score the first goal of the game.
‘Match winner’ – where you may select GWS to beat Essendon.
How much you’re going to receive from the bookmaker if your bet wins. This includes your stake.
A stake of $100 on the Tigers to beat the Cats at odds of 1.70 will return $170.
The profit from a winning bet. This does not include your initial Stake.
A stake of $100 on the Tigers to beat the Cats at odds of 1.70 will return $170 so my profit is $70.
An example of a back bet at a bookmaker would be you stake $100 with Ladbrokes for Richmond Tigers to win the premiership at odds of 13.00′.
In this example there are 2 possible outcomes as shown in the table below
|Tigers win the Premiership||Ladbrokes pay you $1300||You win $1200|
|Any other team wins the Premiership||Ladbrokes pay you $0||You lose $100|
Bookmakers offer promotions to encourage you to join their site. This ‘Signup bonus’ is usually in the form of a free bonus bet when you register and make your first deposit.
Bookmakers also regularly offer their existing customers promotions where it is possible to gain additional bonus bets or cash back.
WHY BOOKMAKERS OFFER PROMOTIONS
Bookmakers can make a lot of profit from each customer. They offer lucrative sign up bonuses to entice you to bet with them rather than their competitors. They’ll also offer ongoing promotions to entice you to continue to place further bets with them.
A bonus bet is essentially a free bet. When you use a free bet your account balance remains the same. It is like having extra credit in your account.
Most bonus bets are stake non returned although some bookmakers offer stake returned bonus bets.
STAKE RETURNED (SR) BONUS BET?
A stake returned (SR) bonus works similarly to any normal bet you would place with a bookmaker.
To calculate how much money you get back from your SR bonus multiply your stake by the odds offered.
‘If you place a stake returned (SR) bonus bet at odds of 5.00 and stake $100, you’ll receive $500 back (this includes your returned stake)’.
STAKE NON RETURNED (SNR) BONUS BET
It is much more common to receive a stake non returned (SNR) bonus bet from bookmakers.
It differs from a normal bet in that you do not receive your stake back with your winnings.
To calculate how much money you get back from your SNR bonus multiply your stake by (the odds offered minus one).
‘If you place a stake non returned (SNR) bonus bet at odds of 5.00 and stake $100, you’ll receive $400 back (as your stake is not included with your winnings).
Return = $100 * (5.00-1.00) = $400
A BETTING EXCHANGE
Betting exchanges offer the same opportunities to bet as a bookmaker with two key differences.
A betting exchange is a place where customers bet against each other (ie. you can place a bet, or act as a bookmaker and lay another persons bet).
Betting exchanges make profit by charging a commission on winning bets rather than traditional bookmakers who make a profit with a margin (house edge) built into their odds.
Betfair is the most popular betting exchange used in Australia.
WHY BETTING EXCHANGE’S ARE IMPORTANT
Betting exchanges are important for matched betting as they allow you to ‘Lay’ a bet. This allows you to create risk free profit as laying the bet for the correct amount you can guarantee you will make the same amount of profit regardless of the result.
A BACK BET
A back bet is when you place a bet with a bookmaker or on a betting exchange. You back a certain outcome to occur and if it does you win money.
‘An example of a Back bet at a betting exchange would be you bet $100 on Betfair for Arsenal to beat Leicester city at odds of 1.48′
The betslip above shows you placing a bet on Betfair on Arsenal at odds of 1.48 with a $100 stake.
Here are the potential outcomes and financial results of the game if you were to back Arsenal for $100 on Betfair at odds of 1.48.
|Arsenal Win||You win $48|
|Leicester Win||You lose $100|
|Draw||You lose $100|
A LAY BET
A lay bet is the opposite of a back bet, it is when you are betting that a certain outcome won’t occur.
A lay bet can only be placed on a betting exchange.
By laying a bet in a betting exchange you are effectively acting like a bookmaker. Winning money if the event doesn’t occur. Or losing the bet if the event does occur.
‘An example of a lay bet at a betting exchange would be you lay a bet of $100 on Betfair for Arsenal to beat Leicester city at odds of 1.49′
The betslip above shows you placing a lay bet on Betfair on Arsenal at odds of 1.49 with a $100 stake. It is worth noting on the slip your liability. This is the amount you are liable for (have to pay out) if the outcome does occur.
Here are the potential outcomes and financial results of the game if you were to lay Arsenal for $100 on Betfair at odds of 1.49.
|Arsenal Win||You lose $49|
|Leicester Win||You win $100|
|Draw||You win $100|
MATCHED BETTING TOOLS
Although matched betting is a fairly straightforward process Bonus Money offers certain tools that make it simpler and quicker to extract profits from the bookmaker promotions.
MATCHED BETTING CALCULATORS
A matched betting calculator enables you to quickly and accurately work out the amounts you need to back and lay to guarantee the same amount of profit with your matched bets.
These are all the key terms and ideas that you need to understand to be able to matched bet confidently but if you would like a refresh of all the key terms then check out our matched betting glossary.
If you need any extra help understanding these terms please ask questions in the
Matched Betting Community