Matched betting (also known as back bet matching, lay bet matching, or double betting) is a betting technique employed by individuals to profit from free bets and incentives offered by

bookmakers A bookmaker, bookie, or turf accountant is an organization or a person that accepts and pays off bets on sporting and other events at agreed-upon odds. History The first bookmaker, Ogden, stood at Newmarket in 1795. Range of events Bookma ...

. Its proponents considered it risk-free in theory-based probability.

Concept

The concept of matched betting requires an account with two or more bookmakers or betting exchanges where at least one offers the user a free bet. When the free bet is placed the other bookmakers or betting exchanges are used to hedge all the possible outcomes so that no matter what happens the value of the free bet is retained. At its simplest, a matched bet involves placing a back bet using the free bet at a bookmaker while placing the opposing lay bet at a

betting exchange A betting exchange is a marketplace for customers to bet on the outcome of discrete events. Betting exchanges offer the same opportunities to bet as a bookmaker with a few differences. Gamblers can buy (also known as "back") and sell (also known ...

. More advanced versions involve placing the bets on multiple bookmakers (

dutching In gambling, Dutching is sharing the risk of losing across a number of runners by backing more than one selection in a race or event. One needs to calculate the correct stake to place on each selection so that the return is the same if any of them ...

) to avoid the commission charged for using an exchange. Generally, bookmakers incorporate terms by which bettors must first place a bet using their own money in order to qualify for the free bet. For this, a bet is placed on particular results occurring with the bookmaker and a second bet placed on the same result not occurring at the betting exchange. The latter is required to offset any loss in the event that the result does not occur; for instance, if a team loses. Once the free bet has been qualified, the same process is followed with the exception that a free bet is being used. No matter which result occurs, there will always be a guaranteed profit because the bet was made free of charge. Online betting outlets, betting exchanges, have become popular in recent years for they allow betters to bet without official odds-makers. In essence, the person placing the lay bet acts as a bookmaker.

Approaches

There are several common strategies for matched betting including assisted and manual betting. Assisted matched betting refers to websites or software packages which provide comparison tables of markets for individuals to bet on. These are commonly known as 'auto-matchers'.

Industry reactions

Matched betting is legal and a spokesperson for William Hill has indicated that the betting industry does not have a problem with this use of free bets.

Matched betting services

The growth of matched betting has led to the formation of matched betting services - usually, subscription-based businesses established to make the process easier with step-by-step instructions and bespoke software.

Criticism and risks

Taxation

In the UK gambling by individuals, including matched betting, is not taxable as gamblers usually lose; if it were taxable there would have to be tax relief for losses. UK HM Revenue & Customs use criteria called "badges of trade" to determine whether an activity is taxable trade. Matched betting, along with all other betting, is tax-free in Italy.

References

{{reflist Wagering