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Blog     01 Nov 2016

Learn Matched Betting in Under 2 Minutes

Matched betting is becoming very popular because it offers a fast and flexible way to generate a second income online. Profit Squirrel is here to show you how to consistently generate £500 (or more) every month, tax-free.

Before you consider joining Profit Squirrel it’s best to understand the basics and see if this is something you want to start doing. Read below to understand how matched betting works in 2 minutes!

So What Exactly is Matched Betting?

Matched betting is a risk-free betting technique used by members at Profit Squirrel to unlock profit from the free bets and bonuses offered by bookmakers. Matched betting is risk-free as it is based on the application of a simple mathematical formula rather than chance. With matched betting, you will never lose your hard-earned money on placing bets ever again.

How Does Matched Betting Work?

The concept is really quite simple. Here’s an example…
Ladbrokes - one of the largest online bookmakers is currently offering a free £50 bonus if you deposit and gamble £50 first. Now obviously with gambling there’s always a risk and at Profit Squirrel we don’t take risks and certainly don’t gamble.

So how do we qualify for the free £50 without gambling £50?

Step 1 of 2: Place a qualifying matched bet.

This is where we accept a small qualifying loss (QL) usually a few pence/pounds. Don’t worry keep on reading, you’ll see why that’s perfectly fine.

We use the Profit Squirrel matched betting software to find the most suitable event to place the matched bets on. Let’s say we decided to place a qualifying matched bet on the following event:

In this example, we are backing Monaco to win at odds 1.55 in Ladbrokes and laying Monaco (i.e Monaco will not win) at odds 1.59 in Betfair’s exchange.

Entering this information into Profit Squirrel's odds calculator gives us a maximum qualifying loss of £2.20 - please see below.

 

Step 2 of 2: Receiving the free £50 bet.

After our qualifying matched bet event has ended, you will receive a free £50 bonus which we will turn into a risk-free profit. Now let’s say we found a good match for another football event (it doesn’t always have to be football) For example, Arsenal FC v Tottenham FC:

We are backing Arsenal to win at back odds 3.0 and laying Arsenal not to win at odds 3.2.

Now open the Profit Squirrel odds calculator in mode Free Bet (SNR), enter the relevant information and see how much risk-free profit we will make (see below). 


Regardless whether Arsenal win/lose or draw we will make a guaranteed profit of at least £30.15 from the free bet.

So how did we make a risk-free profit from the free bet?..

Scenario A: Arsenal Win

Let’s assume Arsenal win, therefore your back bet wins with the bookmaker’s free bet used.

To calculate your return simple multiply your back odds by the back stake.

(Stake) £50 X (Back odds) 3.0 = £150.

Now with free bets usually the stake is not returned (SNR) because it’s actually a free bet supplied by the bookmaker so you’ve actually made £100 in bookmaker account. As a result of winning with the bookmaker, you have lost in the betting exchange. Your liability in the exchange in this example was £69.85. This gives you P&L of +£30.15. (100 - 69.85 = 30.15). Let’s not forget your qualifying loss was -£2.20 therefore, your net profit in this example is £27.95 risk-free!

Scenario B: Arsenal did not win

Let’s assume Arsenal do not win. So your bet wins with the exchange and loses with the bookmaker. Losing with the bookmaker is perfectly fine because it was a free bet anyway. Our profit comes from the exchange where our lay stake is £31.75 minus the 5% exchange commission which gives us a profit of £30.16.

Remember, in any betting exchange, we are playing the role of a bookmaker. So if we offer a price of 3.2 (odds) and staked £31.75 this is what we potentially can win. The liability (£69.89) comes into play if we potentially lose in the exchange and therefore need to pay out £69.89 to whoever accepted to take on our lay bet in the exchange market (just a random punter).

Let’s not forget our QL -£2.20, therefore, your net profit is £27.96 risk-free!

Top Tip: You can extract much more profits from each bonus received by going for higher match odds and using betting exchanges like Smarkets instead of Betfair as the commission on lay winnings is much less (2%). Please read Profit Squirrel’s coaching guide “boost your profits” in the membership area to learn more about making the most amount of profit from the bonuses you start receiving.

FAQ

I already have an account(s) with certain bookmakers so I can’t use redeem the sign-up bonus. Will I still be able to make £500 per month with Profit Squirrel?

Certainly. Profit Squirrel will source all the free bets and bonuses for existing customer too, You don’t need to waste time searching for them! Visit the daily offers section in the Profit Squirrel membership area to see the latest offers available for customers who have pre-existing bookmaker accounts.

Was this article helpful?

If you want to understand more and learn how to earn £500 per month with matched betting, join Profit Squirrel today.

Use Promo Code: MATCH10 to save 10% on membership.

To Your Success!

 Emily x

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Emily Dawking

Emily Dawking

Squirrel Blogger

Housewife from London, previously worked 8 years for a PR agency until I had my beautiful twin boys.

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Comments (1)

SuperSquirrel

SuperSquirrel

1 month ago

Great post Em, I think you nailed it!

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