Lesson 2: Cash In A Free Bet

Ready to see your first profit?

Let's walk through the process of using a £10 free bet to back Liverpool to beat Manchester City at odds of 6 on a traditional bookmaker and laying Liverpool at odds of 6.2 on a betting exchange.

1. Using the Free Bet:

   • Back Liverpool at Odds of 6 (Bookmaker):

     • Back Stake: £10 (using the free bet)

     • Odds: 6

   If Liverpool wins, your profit would be calculated as:

   Profit = (Back Stake × Odds) − Back Stake =

   (£10× 6) − £10 = £50 Profit

   If Liverpool doesn't win (draw or Manchester City wins), you would lose nothing because you used a free bet.

2. Laying Liverpool at Odds of 6.2 (Exchange):

   • Lay Stake:

     • To calculate the lay stake, you would use a matched betting calculator (make sure you change the bet type to ‘Free Bet SNR’). The goal is to ensure that, regardless of the outcome, you secure a guaranteed profit. Let's assume the calculated lay stake is £8.06.

   If Liverpool wins, your loss on the lay bet (liability) would be: £41.91. But you’ll win £50 profit from the free bet, hence a profit of £8.09.

   If Liverpool doesn't win (draw or Manchester City wins), you will win your lay bet stake: £8.06. You will not lose any money from your stake as you used a free bet as opposed to cash.

By carefully adjusting the lay stake, you aim to create a balanced position where you either win with the bookmaker or on the betting exchange, securing a guaranteed profit. Using higher odds when using a free bet is a strategy to maximize the retained value. High odds increase the potential profit from the free bet, allowing you to extract more value from the promotion.

It's crucial to use a matched betting calculator to determine the optimal lay stake and ensure that your overall position results in a profit.