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. Its proponents considered it risk-free in theory-based probability.[1]
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. More advanced versions involve placing the bets on multiple bookmakers (dutching) 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.[2]
Approachesedit
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'.[3][4]
Industry reactionsedit
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.[5]
Matched betting servicesedit
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.[4]
Criticism and risksedit
This section needs expansion. You can help by adding to it. (September 2022)
Taxationedit
In the UK gambling by individuals, including matched betting, is not taxable[6] 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.[7]
Matched betting, along with all other betting, is tax-free in Italy.[8]
^Anon. (5 June 2010). "Free World Cup bets offer chance to beat the bookies". The Guardian. from the original on 9 September 2017. Retrieved 16 June 2017.
^ abShearer, Jason (24 July 2010). "Free bets mean you can clean up as bookies meet their match". The Guardian. from the original on 21 December 2016. Retrieved 15 December 2016.
^Murray West, Rosie (6 December 2010). "Is this a bet you can't lose?". Daily Telegraph. from the original on 10 December 2010.
^"Meaning of trade: Exceptions & alternatives: Betting and gambling - introduction". HM Revenue & Customs. 7 March 2022 [Originally published 22 November 2013, all updates available]. BIM22015. from the original on 17 October 2013. Betting and gambling, as such, do not constitute trading
^"Gazzetta Ufficiale art. 30 DPR 600/1973". Gazzetta Ufficiale.
December 18, 2023
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This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article contains content that is written like an advertisement Please help improve it by removing promotional content and inappropriate external links and by adding encyclopedic content written from a neutral point of view June 2020 Learn how and when to remove this template message This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Matched betting news newspapers books scholar JSTOR June 2020 Learn how and when to remove this template message This article includes a list of references related reading or external links but its sources remain unclear because it lacks inline citations Please help to improve this article by introducing more precise citations June 2020 Learn how and when to remove this template message Learn how and when to remove this template message 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 Its proponents considered it risk free in theory based probability 1 Contents 1 Concept 2 Approaches 3 Industry reactions 4 Matched betting services 5 Criticism and risks 6 Taxation 7 See also 8 ReferencesConcept editThe 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 More advanced versions involve placing the bets on multiple bookmakers dutching 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 2 Approaches editThere 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 3 4 Industry reactions editMatched 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 5 Matched betting services editThe 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 4 Criticism and risks editThis section needs expansion You can help by adding to it September 2022 Taxation editIn the UK gambling by individuals including matched betting is not taxable 6 as gamblers usually lose if it were taxable there would have to be tax relief for losses UK HM Revenue amp Customs use criteria called badges of trade to determine whether an activity is taxable trade 7 Matched betting along with all other betting is tax free in Italy 8 See also editMathematics of bookmakingReferences edit Burek Owen 20 July 2013 Is Matched Betting the Answer to Student Prayers Huffington Post Archived from the original on 14 July 2014 Thrust Richard 2010 Free Sports Bets ISBN 9781445725710 Anon 5 June 2010 Free World Cup bets offer chance to beat the bookies The Guardian Archived from the original on 9 September 2017 Retrieved 16 June 2017 a b Shearer Jason 24 July 2010 Free bets mean you can clean up as bookies meet their match The Guardian Archived from the original on 21 December 2016 Retrieved 15 December 2016 Murray West Rosie 6 December 2010 Is this a bet you can t lose Daily Telegraph Archived from the original on 10 December 2010 Meaning of trade Exceptions amp alternatives Betting and gambling introduction HM Revenue amp Customs 7 March 2022 Originally published 22 November 2013 all updates available BIM22015 Archived from the original on 17 October 2013 Betting and gambling as such do not constitute trading Badges of Trade Alterledger 22 May 2015 Gazzetta Ufficiale art 30 DPR 600 1973 Gazzetta Ufficiale Retrieved from https en wikipedia org w index php title Matched betting amp oldid 1189815838, wikipedia, wiki, book, books, library,
