To truly understand how matched betting works, you’ll need to understand the term back bet and lay bet. A back bet occurs when you are betting that a particular outcome will come true. For example, if you are betting that the England football team will win, you are making a backing bet. If England does win, then you win back your bet and the winnings. If England draws or loses the game, then you lose the stake that you originally bet with. Back bets can be placed with any bookmaker such as Ladbrokes, William Hill, and Paddy Power.
A lay bet is betting against a particular outcome to come true. For example, you place a bet that England will not win. If England does lose or draw, then you win the bet. Lay bets are made at betting exchanges such as Betfair instead of bookmakers. With qualifying offers, you’ll need to make the first bet with real money. Once you’ve bet with real money, you will receive a free bet. The free bet is where all the money is made. To make a profit, you need to use a free bet with a back bet and lay it. In essence, you are betting that England will win and lose at the same time. Either way, you make a profit. One of the outcomes will yield you a return, while the other one will be lost. But the profit you earn will outweigh the stake that you originally bet.