Matched betting is a betting technique that makes use of the free bets that are offered by online bookmakers as welcome bonuses, deposit bonuses, the first bet wins bonuses, and more of the same.
It is called a Matched Bet or Matched Betting because you will be matching your bets and betting against yourself to make sure you make money.
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Common Terminologies
Before we go further into how matched betting works, let us first take a look at some of the most common terminologies used in matched betting.
Back Bet
A back bet is a bet that you place, betting that a team, horse, car, or person will win an event.
Lay Bet / Lay Odds
A lay bet is a bet that is placed, betting that the team, horse, car, or person will lose.
Betting Exchange
Betting exchanges are platforms that bettors can use to bet against each other instead of a bookmaker or a betting site. In regular sports betting and bookmaker sites and shops, you can only place a back bet.
A betting exchange allows you to play a lay bet. Most betting exchanges can also offer better odds to their clients because you are not betting against the bookmaker. Instead, customers are betting against themselves.
When you use a betting exchange for matched betting, you can have higher matched betting odds.
Free Bets
Free bets are as their name suggests bets that are given to clients. They can be given through the welcome bonus or via a stand-alone free bet offer.
Free bets are used in betting exchanges as a way of making a profit without putting in your own real money.
Qualifying Bet
A qualifying bet is a bet that is qualified for money return after it wins. It is a winning bet that you win money from.
How Matched Betting Works?
To do matched betting, you will need an account with two or more bookmakers or betting sites. One of these could be a betting exchange site.
The first step is to use a free bet to place a back bet on one betting site. Then go to another betting site or a betting exchange and place a lay bet on the same event.
The result is, no matter the outcome of the event, you will be releasing the free bets offered by the betting sites. You can then use the free bets to make more back and lay bets.
Is Matched Betting Legal?
Yes. It is completely legal. Sports betting sites do not restrict their users from making bets using their free bets.
It is important to remember though that for most betting websites, any profit from the free bets will have to be subjected to wagering requirements. But if you keep up with the matched betting work, you should be able to meet the requirements in no time.
Is Matched Betting Tax-Free?
If you are a UK resident, the answer is yes.
All profits from gambling, even if that is profit from the free bets given to you are tax-free. Your winnings will not be taxed by the UK government.