What Is Back Betting?

Back betting is incredibly easy to remember, mainly because if you’ve ever placed a bet, then the chances are you’ve placed a back bet. It’s when you bet that something will happen. For example, if I bet that England will win the Euros 2024 (unlikely), then I’d be placing a back bet.

Here is an example of one of my free back bets in action. After

What Is lay bettiNG?

Lay bets are a little bit more complicated, but not by much.

A lay bet means you’re betting that something will not happen. This type of bet is used on betting exchanges, which are like marketplaces for people who want to bet against each other instead of betting against a bookmaker.

Here’s a simpler way to understand lay betting:

1. What It Is: Think of a lay bet as saying “I bet this won’t happen.” For example, if you lay a bet on a horse, you are betting that the horse will not win the race.
2. Your Risk: When you lay a bet, the amount you could lose is usually more than the amount you bet. This is called your liability. For example, if you lay $10 at 4.0 odds, you could lose $30 if you’re wrong, but you’ll win $10 if you’re right.
3. Winning the Bet: You win a lay bet if the thing you bet against does not happen. If it does happen, you have to pay out the winnings to the person who took your bet.

Betting exchanges let you choose whether you want to bet for something to happen (back bet) or against it (lay bet). This freedom allows you to make your own choices and possibly win money if you predict correctly.

So, lay betting is like saying, “I don’t think this will happen,” and if you’re right, you win! And because of this it’s a fundamental part of matched betting strategy.

REMEMBER: when placing a back bet, you can never lose more than your stake, however, when placing a lay bet, you can lose significantly more than your stake, because essentially you are taking the place of the bookmaker.

Liability & Lay Bets

Liability is the amount of money you stand to lose when you place a lay bet. Unlike a back bet where you only risk losing the amount you bet, lay betting exposes you to potentially losing more than your initial stake.

The liability in lay betting is calculated based on the odds you offer and the stake you accept from the backer (the person taking your lay bet). Here’s the formula to calculate liability:

Liability = (Odds – 1) x Stake

Example of Calculating Liability:

Suppose you place a lay bet on a horse, offering odds of 5.0, and a backer accepts your lay bet with a stake of $10. Here’s how you would calculate your liability:

1. Calculate the potential payout: If the horse wins, you need to pay the backer their winnings. The winnings are calculated as:

Winnings = Odds x Stake = 5.0 x $10 = $50

2. Subtract the backers stake to find your liability

Liability = $50 – $10 = $40

So, if the horse wins, you have to pay the backer $50, and since they gave you their $10 stake, your actual loss (liability) is $40.

Why Are Back Bets & Lay Bets Important In Matched Betting?

Back bets and lay bets are key to matched betting, helping you to bet without losing money. By using both back and lay bets, matched bettors make sure they cover all possible outcomes of an event, while still getting their free bet afterwards.

So, so matter what happens in the game, one bet will cover the loss of the other. This removes the risk and lets bettors turn free bets and promotions into real money, which is how matched betting becomes an effective way to make some extra beer money.

As You Can See…

Back bets get you into the game, and lay bets keep you safe from losing money. Together, they let you take advantage of free bets and promotions without the risk that usually comes with betting, and when paired with free bets this is what makes matched betting a smart way to earn some extra cash.