Quick summary
This article explains lay betting and how to use it effectively. You’ll learn how to bet against outcomes, calculate potential profits and liabilities, and understand the risks involved so you can make smarter and more profitable betting decisions. For more articles like this, visit our blog, The Advantage.
Curious About Lay Betting?
Lay betting lets you do something most casual bettors never try: bet against a team or player to win. This approach opens up unique opportunities to spot value and manage risk in ways traditional betting doesn’t allow.
In this guide, we will explain what lay betting is, how it works, and outline strategies to help you make smarter, more profitable decisions.
What is lay betting?
Lay betting is a unique betting strategy where you bet against a particular outcome rather than supporting it. In traditional betting, you back a team or player to win, but with lay betting, you're acting as the bookmaker. This means you’re wagering that a specific event will not happen.
For example, in a football match, if you lay a bet on Team A to lose (lay Team A to win), you’re betting that Team A will not win. If they lose or draw, you win the bet. If Team A wins, you lose.
Essentially, you’re offering odds to other bettors and taking on the risk of that outcome. Your potential profit is the other bettor’s stake, while your potential loss is the amount you’d need to pay out if the outcome happens.
How lay betting works in practice
Here's a simple breakdown:
The basic mechanics
When you place a lay bet, you're basically betting against other bettors by offering them odds.
Let's say Manchester United is playing at +100 (2.0) to win. If you lay them at those odds, you're saying: "I'll give you +100 (2.0) odds that Manchester United won't win." You collect the other person's stake if United loses or draws, but you pay out their winnings if United wins.
Your liability vs. your profit
Here's where lay betting gets tricky. Your potential profit is limited to the other person's stake, while your potential loss (called "liability") depends on the odds and can be higher or lower than your profit.
Example 1:
If you lay Manchester United at +100 (2.0) odds with someone betting $100, you win $100 if United doesn't win. But if United does win, you owe that person $200 ($100 stake plus $100 winnings).
Example 2:
You think Liverpool won’t beat Chelsea, so you lay Liverpool at +80 American odds (1.8 decimal) for $50. If Chelsea wins or draws, you keep your $50. If Liverpool wins, you pay out $40, which is calculated as your stake × (odds − 1). Your maximum profit is $50, while your liability is $40, nearly as much as your potential win.
Betting channel and requirements
Lay bets aren’t available with traditional bookmakers; you need a betting exchange. These platforms match your lay bet with someone wanting to back the same selection. The exchange takes a small commission (usually 2-5%) from winning bets.
Lay betting vs. traditional betting
Feature | Lay betting | Traditional betting |
Role of bettor | Acts as bookmaker | Punter |
Bet type | Bet against an event happening | Bet on an event happening |
Risk | Potentially higher due to liability | Limited to stake |
Where to bet | Betting exchanges | Traditional sportsbooks |
Odds | Set by the exchange (or layer) | Set by the bookmaker |
Market availability | Depends on the exchange | Limited to what the bookmaker offers |
Why professional bettors use lay betting
- More betting options: Access to more markets, allowing you to bet on more outcomes beyond just backing a winner.
- To hedge existing bets: You can lock in profit or reduce loss by betting against your original bet if odds shift.
- Control over odds: By setting the odds for others, bettors gain more flexibility than they would on traditional sportsbooks.
- Reduced house edge: Betting exchanges charge smaller commissions compared to bookmakers’ margins, which can improve long-term profitability.
- Exploit market inefficiencies: Experienced bettors can identify mispriced odds and capitalize on differences across markets.
Strategies for smarter lay betting
- Focus on low-risk lay bets: Lay bets against outcomes that are less likely to happen, like betting against heavily favored teams or players unlikely to lose.
- Use the value bet approach: Look for lay bets where the odds offered are higher than the true probability, increasing long-term profitability.
- Manage your bankroll: Only risk a small percentage of your bankroll on each lay bet to protect your funds and avoid big losses.
- Hedge your bets: Use lay betting to hedge existing bets and lock in profits or minimize losses when odds shift in your favor.
- Bet on multiple markets: Diversify your lay bets across different sports, events, and markets to spread risk and increase your chances of success.
Conclusion
Lay betting lets you act as the bookmaker and bet against outcomes rather than supporting them. While it introduces unique risks, it also offers opportunities for strategic betting, hedging, and accessing diverse markets.
Frequently asked questions
Can I lay a bet on any event, or are there specific markets available for lay betting?
Lay betting can generally be done on any market offered by a betting exchange. Popular markets include sports like football, tennis, and horse racing, as well as non-sporting events like political elections or reality TV show outcomes.
What happens if I can’t find a backer for my lay bet?
If you can't find a backer for your lay bet, the bet will remain unmatched. You’ll have to adjust your odds or wait for someone else to take the bet, or simply choose another market.
How are the odds for lay betting determined on betting exchanges?
The odds for lay betting are determined by supply and demand. If more bettors are backing a particular outcome, the odds for laying that outcome will decrease. Conversely, if fewer people back it, the odds rise. Exchanges adjust the odds in real time based on the volume of money in the market.
What fees or commissions do betting exchanges charge on lay bets?
Betting exchanges usually charge a small commission on any winnings from lay betting, typically around 2-5%. The exact fee depends on the exchange. If you win a lay bet, the exchange will deduct their commission from your profit before it’s credited to your account.
Is lay betting legal in all countries?
No, It depends on local gambling laws and the regulations surrounding betting exchanges. Some countries have strict regulations on online betting, while others may restrict betting exchanges altogether. So always check regulations in your region before placing a lay bet.