What is matched betting?

How it works

A bookmaker lets you bet that something will happen — for example, that Arsenal win. A betting exchange such as Betfair Exchange, Smarkets, Betdaq or Matchbook also lets you bet that it won't: you act as the bookmaker and accept someone else's bet. That is called laying.

If you back and lay the same selection at similar odds, one bet wins and the other loses. Sized correctly, the two cancel out. The exchange takes a small commission on winning lay bets, so on a cash bet you normally lose a few pence. That small cost is the price of unlocking a bookmaker's promotion, usually a free bet.

A worked example

Most matched betting follows two steps: a qualifying bet to earn a free bet, then using the free bet. Here is a typical £10 sign-up offer, with lay odds slightly higher than back odds and 2% exchange commission.

Step 1 — the qualifying bet

Back £10 at odds of 3.0 with the bookmaker. Lay the same selection at 3.1 on the exchange. The matched betting calculator gives a lay stake of £9.74, with £20.45 liability.

Outcome	Bookmaker	Exchange	Result
Your selection wins	+£20.00	−£20.45	−£0.45
Your selection loses	−£10.00	+£9.55	−£0.45

You lose 45p whatever happens — the qualifying loss — and the bookmaker credits a £10 free bet.

Step 2 — the free bet

Most free bets are stake not returned (SNR): if it wins you receive the winnings but not the £10 stake. Using it at odds of 6.0 and laying at 6.2 needs a lay stake of £8.09, and locks in £7.93 whichever side wins. Overall: £7.93 − £0.45 = £7.48 profit from the offer.

What you need

• Bookmaker accounts with promotions you're eligible for. Read every offer's terms: minimum odds, qualifying markets, expiry and whether the free bet stake is returned.
• A betting exchange account with enough balance to cover the liability — what you pay if the lay loses. Liability is often more than the back stake, especially at higher odds.
• A calculator for the lay stake. Getting it wrong is the most common way to lose money.
• A record of every bet so you know your real profit. Promotions overlap and odds move; a record catches mistakes and unsettled bets.

The risks

Matched betting removes most of the risk from the sporting result, not every risk. The common problems are:

• Human error. Laying the wrong selection, the wrong market or the wrong stake can leave you exposed.
• Odds moving between placing the back and the lay. Place both bets close together and check the price.
• Partial matches. An exchange can match only part of your lay. Until the rest matches, you are partly unhedged. Matched Bets lets you record each fill at its own odds and calculates the remaining lay.
• Offer terms. Missing a condition can mean no free bet after a qualifying loss.
• Account restrictions. Bookmakers can limit promotions or stakes for any customer under their terms.

Is matched betting legal in the UK?

Yes. Matched betting uses legal products from licensed bookmakers and exchanges, and you're simply taking up offers that are made to you. In the UK, gambling winnings are generally not subject to Income Tax or Capital Gains Tax for individuals. This is general information, not tax or legal advice.

Is it gambling?

You are placing bets, so treat it with the same care. You need to be 18 or over, only use money you can afford to tie up in liability, and stop if it stops feeling in control. Free, confidential support is available 24/7 from the National Gambling Helpline on 0808 8020 133, and our gambling help page explains how to block gambling payments, sites and apps.

Next steps

• Learn the maths: how to calculate a lay stake.
• Try your own numbers in the free matched betting calculator.
• Look up any term in the matched betting glossary.
• Keep a proper record: spreadsheet or app?