Following on from my article about what is matched betting, here I'm going to write about how matched betting works.
To start with, you will need a betting exchange account. I use Betfair, there is others, including Betdaq.
The reason why you will need a betting exchange account is to lay off your first (qualifying) bet, and a proportion of your free bets (this is how matched betting makes money).
I have written an article about the best free bets to use for matched betting, and from that article I'm going to use a £50.00 free bet to give you an example of how matched betting works.
Some online bookmakers have a minimum stipulation that your first (qualifying) bet has to be placed at odds of 2.00 (Even money) or greater in order to qualify for the free bet. So for the benefit of this example I'm going to work on that theory.
First (and like with all matched bets I place), I would select a football match or sporting event where the odds with the bookmaker is as close to the odds with the betting exchange, as possible.
Then I would place my qualifying bet like this…..
Back Team A @ 2.00 (Even money) with online bookmaker for £50.00.
Lay Team A @ 2.00 (approximately) or nearest price, ie 2.02 or 2.04, on betting exchange for approximately £50.00, to cover qualifying bet and get as close to £50.00 back as possible.
Once this is all settled and I have received my free bet, I would then use my free bet on a different football match or sporting event like this……..
Back Team A @ 4.0 (3/1) with online bookmaker for £50.00.
Lay Team A @ 4.1 (approximately) or nearest price, ie 4.2 or 4.3, on betting exchange for £37.00 (approximately), this guarantees me a profit of around £35.00.
It breaks down like this…… if the free bet wins I will receive £150.00 from the online bookmaker and lose £114.70 on the betting exchange – a profit of £35.30.
If the free bet loses, I get nothing from the online bookmaker (but don't lose anything, as it was a free bet) and I get back £35.15 on the betting exchange – a profit of £35.15.
As I already stated, this is just an example of how I would do things. The prices I have quoted in my example can’t be guaranteed. As a rule of thumb, if I find a bet of 2.00 (Even money) with an online bookmakers, the chances are it will be somewhere between 2.02 and 2.08 to lay on Betfair.
Likewise with my free bet example. If I found a price of 4.00 (3/1) to back with the online bookmaker, the price on Betfair to lay the bet would probably be somewhere between 4.1 and 4.4.
This is why I quote ‘approximately’ in my examples. If the qualifying bet is placed at 2.00, and the lay bet is priced at 2.06, the amount needed to lay the bet (after commission) would be slightly more than £50.00.
It is important to be patient and take time when looking for a qualifying or free bet for matched betting, as the closer the odds are between the online bookmaker and the betting exchange the better, as it results in greater profits.
In general though, it is highly likely that when placing any qualifying bets a small percentage will be lost. From my own point of view, if I was placing a £50.00 qualifying bet I would be looking to get a minimum of £47.50 returned on it, meaning a small loss of £2.50 (5%), any higher and I wouldn't do it.
When it comes to the free bets, I always look to make 60% profit (ie, £30.00 returned on a £50.00 free bet). After I have taken off any possible loss from my qualifying bet, I would want a minimum total return of 55% of my free bet value, although I generally get 60% these days.
This is a typical process I have followed while cashing in my free bets for matched betting. I hope I have explained things clearly, if anyone needs any help with matched betting, feel free to leave a comment and ask - I'll be very happy to help out in any way I can.