Matched Betting for Beginners: A Step-by-Step Guide to Your First Profit

What Is Matched Betting?

Matched betting is a strategic approach that allows individuals to profit from the free bets and promotions offered by bookmakers. By placing bets on all possible outcomesThere are occasions when we here at ReadyBetGo want to bring you interesting facts about the gambling industry  When something catches our eye, we will publish it for your enjoyment. 
  of a sporting event, you can effectively eliminate risk and secure a guaranteed profit. Unlike traditional gambling, matched betting doesn't rely on chance but on mathematical certainty. It's legal and recognized by financial authorities as a legitimate way to earn money online.

How Does Matched Betting Work?

To understand matched betting, it's essential to grasp the concept of backing and laying bets:

• Back Bet: This is a traditional bet where you wager on a specific outcome to occur. For example, betting on Team A to win a football match.

• Lay Bet: This is a bet where you wager against a specific outcome occurring. In other words, you bet that a particular outcome will not happen. Lay bets are placed on betting exchanges like Betfair, where you act as the bookmaker.

By placing both a back bet and a lay bet on the same event, you cover all possible outcomes. This strategy ensures that you neither gain nor lose money on the initial bet (sometimes with a minimal loss), but you qualify for the bookmaker's free bet or bonus.

The Role of Free Bets

Bookmakers offer free bets and bonuses to attract new customers. These promotions are where the profit in matched betting comes from. Once you've qualified for a free bet by placing a qualifying bet, you can use the free bet to repeat the process and secure a profit.

Getting Started: Tools and Accounts You'll Need

Before diving into matched betting, you'll need to set up a few accounts and tools:

1. Bookmaker Account

Sign up with a reputable bookmaker that offers a generous welcome bonus or free bet for new customers. Popular bookmakers often provide promotions like "Bet £10 and get a £30 free bet."

2. Betting Exchange Account

A betting exchange allows you to place lay bets. Platforms like Betfair, Smarkets, or Betdaq are commonly used. Sign up and verify your account, and ensure you have funds available to cover your lay bet liabilities.

3. Matched Betting Calculator

This is an essential tool that helps you calculate the exact amounts to stake on your back and lay bets to minimize losses and maximize profits. There are free calculators available online, or you can use software provided by matched betting services.

4. Odds Matching Software (Optional but Helpful)

Odds matching tools scan bookmakers and exchanges to find closely matched odds, saving you time and increasing efficiency. Services like AiProfit or Profit Accumulator offer these tools, often with a free trial.

Step-by-Step Guide to Your First Matched Bet

Step 1: Choose a Bookmaker and Sign Up

Research and select a bookmaker with a favourable welcome offer. For this example, let's use:

• Offer: "Bet £10 and get a £30 free bet."

Action:

• Visit the bookmaker's website and click on the sign-up or join button.

• Fill in your personal details accurately.

• Verify your account if required, by providing identification documents.

• Opt-in for the welcome offer if necessary, and note any promo codes.

Step 2: Deposit Funds into Your Bookmaker Account

Deposit the minimum amount required to qualify for the welcome offer. In this case, deposit at least £10.

• Use a debit card or payment method accepted by the bookmaker. Be cautious with e-wallets like Skrill or Neteller, as some offers exclude deposits made via these methods.

Step 3: Sign Up with a Betting Exchange

Create an account with a betting exchange like Betfair or Smarkets.

• Complete the registration process and verify your account.

• Deposit funds to cover the liability of your lay bets. The amount needed will depend on the odds and stake of your lay bet.

Step 4: Find a Suitable Match for Your Qualifying Bet

The goal is to find a sporting event where the back odds at the bookmaker are close to the lay odds at the exchange. This minimizes the qualifying loss.

Tips for Finding a Good Match:

• Popular Sports: Football, tennis, and horse racing often have closely matched odds.

• Close Odds: Look for events where the odds difference between the bookmaker and exchange is minimal.

• Timeframe: Choose events that will occur soon to receive your free bet quickly.

Example:

• Event: Football match between Team A and Team B.

• Selection: Team A to win.

• Back Odds at Bookmaker: 2.0 (evens).

• Lay Odds at Exchange: 2.02.

Step 5: Calculate Stakes Using a Matched Betting Calculator

Use the matched betting calculator to determine:

• The lay stake needed at the exchange.

• The liability required in your exchange account.

• The expected qualifying loss.

Input the following into the calculator:

• Bet Type: Normal (for qualifying bets).

• Back Stake: £10.

• Back Odds: 2.0.

• Lay Odds: 2.02.

• Lay Commission: Enter the commission rate charged by the exchange (e.g., 2%).

Calculator Output:

• Lay Stake: Approximately £9.90.

• Liability: The amount you need in your exchange account to cover the lay bet, e.g., £10.10.

• Qualifying Loss: A small amount, e.g., £0.20.

Step 6: Place Your Qualifying Back Bet at the Bookmaker

• Log in to your bookmaker account.

• Navigate to the event and selection you've chosen.

• Enter the stake amount (£10) and confirm the bet.

• Ensure that the bet is placed and confirmed.

Step 7: Place Your Lay Bet at the Betting Exchange

• Log in to your betting exchange account.

• Find the same event and selection.

• Enter the lay stake calculated earlier (e.g., £9.90).

• Confirm the lay bet.

• Double-check that the odds and stakes match your calculations.

Step 8: Wait for the Event to Conclude

After placing both bets, wait for the event to finish. Regardless of the outcome, your qualifying loss will be as calculated.

Step 9: Receive Your Free Bet from the Bookmaker

Once the qualifying bet is settled, the bookmaker will credit your account with the free bet, according to their terms (sometimes immediately, sometimes within 24 hours).

Step 10: Find a Suitable Match for Your Free Bet

For the free bet, aim for higher odds to maximize profit, typically between 4.0 and 7.0.

Example:

• Event: Horse racing.

• Selection: Horse C to win.

• Back Odds at Bookmaker: 5.0.

• Lay Odds at Exchange: 5.2.

Step 11: Calculate Stakes for the Free Bet

Set the calculator to "Free Bet - SNR" (Stake Not Returned) since the free bet stake isn't returned in winnings.

Input:

• Free Bet Amount: £30.

• Back Odds: 5.0.

• Lay Odds: 5.2.

• Lay Commission: e.g., 2%.

Calculator Output:

• Lay Stake: Approximately £23.08.

• Liability: e.g., £96.77.

• Expected Profit: Around £22 to £24.

Step 12: Place Your Free Back Bet at the Bookmaker

• Use the £30 free bet token.

• Place the bet on the selection with higher odds.

• Confirm that you are using the free bet and not your cash balance.

Step 13: Place Your Lay Bet at the Betting Exchange

• Enter the lay stake calculated for the free bet.

• Confirm the lay bet.

• Ensure all details match your calculations.

Step 14: Settle and Secure Your Profit

After the event concludes, you will receive your winnings depending on the outcome:

• If the Back Bet Wins:

  • You receive winnings from the bookmaker (excluding the free bet stake).

  • You lose the lay bet liability at the exchange.

  • The net profit is as calculated.

• If the Lay Bet Wins:

  • You gain the lay bet stake from the exchange.

  • You receive nothing from the bookmaker.

  • The net profit remains the same.

In both scenarios, you secure a profit from the free bet.

Understanding the Calculations

To fully grasp matched betting, it's beneficial to understand the calculations behind the bets.

Qualifying Bet Calculation Example

• Back Bet:

  • Stake: £10

  • Odds: 2.0

  • Potential Winnings: £10 (if the back bet wins)

• Lay Bet:

  • Lay Stake: £9.90

  • Odds: 2.02

  • Liability: £10.10

Outcomes:

• If Back Bet Wins:

  • Winnings from Bookmaker: £10

  • Loss at Exchange: Lay Stake x (Lay Odds - 1) = £9.90 x (2.02 - 1) = £10.10

  • Net Loss: £10 (winnings) - £10.10 (exchange loss) = -£0.10

• If Lay Bet Wins:

  • Winnings at Exchange: Lay Stake x (1 - Commission) = £9.90 x 0.98 = £9.70

  • Loss at Bookmaker: £10 stake lost

  • Net Loss: £9.70 (exchange winnings) - £10 (bookmaker loss) = -£0.30

In both cases, the loss is minimal and acceptable for gaining the free bet.

Free Bet Calculation Example

• Back Bet:

  • Stake: £30 (free bet)

  • Odds: 5.0

  • Potential Winnings: £120 (excluding stake)

• Lay Bet:

  • Lay Stake: £23.08

  • Odds: 5.2

  • Liability: £96.77

Outcomes:

• If Back Bet Wins:

  • Winnings from Bookmaker: £120

  • Loss at Exchange: £23.08 x (5.2 - 1) = £96.77

  • Net Profit: £120 (winnings) - £96.77 (exchange loss) = £23.23

• If Lay Bet Wins:

  • Winnings at Exchange: £23.08 x 0.98 = £22.62

  • No winnings from bookmaker (stake not returned)

  • Net Profit: £22.62

Again, the profit is approximately the same in both cases.

Tips for Successful Matched Betting

Read and Understand the Terms and Conditions

• Each bookmaker offer comes with specific terms.

• Pay attention to minimum odds requirements, wagering requirements, and expiration dates.

Keep Accurate Records

• Maintain a spreadsheet documenting all bets, stakes, odds, and profits.

• This helps track your progress and ensures you don't make mistakes.

Manage Your Bankroll

• Only use funds you can afford to set aside for matched betting.

• Avoid overstretching your finances, especially when covering lay bet liabilities.

Use Reliable Tools

• Matched betting calculators and odds matching software streamline the process.

• Consider subscribing to a matched betting service for additional support and resources.

Stay Organized

• Set reminders for when free bets expire.

• Keep track of which offers you've completed and which are still available.

Be Cautious with Bookmakers

• Avoid suspicious betting patterns that may lead bookmakers to restrict your account.

• Do not abuse promotions or engage in fraudulent activities.

Be Aware of Exchange Commission Rates

• Different exchanges have varying commission rates.

• Factor in the commission when calculating your lay stakes.

Potential Risks and How to Mitigate Them

While matched betting is considered low-risk, it's important to be aware of potential pitfalls:

Human Error

• Risk: Misplacing bets, entering incorrect stakes or odds.

• Mitigation: Double-check all entries before confirming bets.

Changing Odds

• Risk: Odds can fluctuate between the time you calculate and place bets.

• Mitigation: Act quickly after calculating, and refresh odds before placing bets.

Bet Rejection or Limitation

• Risk: Bookmakers or exchanges may reject bets or limit stakes.

• Mitigation: Ensure sufficient funds are in your accounts, and avoid placing unusually large bets.

Account Restrictions

• Risk: Bookmakers may limit or close accounts if they suspect matched betting.

• Mitigation: Place occasional mug bets (regular bets that appear like standard gambling) to blend in.

Expanding Beyond the First Bet

Once you've completed your first matched bet and secured a profit, you can repeat the process with:

• Other Bookmakers: There are numerous bookmakers with welcome offers.

• Existing Customer Offers: Reload offers, cashback, and enhanced odds promotions.

• Casino Offers: Similar strategies can be applied to certain casino promotions.

Conclusion

Matched betting offers a systematic and low-risk way to earn extra income by leveraging bookmaker promotions. By understanding the fundamentals and following a structured approach, you can consistently generate profits.

Remember to:

• Start with small stakes to build confidence.

• Utilize the tools and resources available.

• Stay organized and disciplined in your approach.

With patience and practice, matched betting can become a reliable source of additional income.

Happy matched betting, and may your profits grow!

Disclaimer

Matched betting involves financial transactions and carries some risks. Ensure you fully understand the process before engaging in matched betting. This guide is for informational purposes only and does not constitute financial advice. Always gamble responsibly and be aware of the laws and regulations in your jurisdiction.