Investing is often the most suitable long-term strategy for wealth generation, but there may be times when your income needs a boost in the short to medium term. If you’re looking to bring a change to the amount of revenue you’re pulling in, launching a side hustle — to borrow from Gen Z — is often advisable. Side hustles are things you can do alongside your existing profession to bring in a second income; some pursuits can even add thousands to your monthly yield.
While there are a whole host of practices to generate additional revenue streams, from affiliate marketing to drop shipping, in recent years, matched betting has become a popular choice, particularly as the betting website quota has increased. But what exactly is matched betting, and is it possible to use it as a way to earn a substantial monthly income?
Matched Betting Explained
The simplest definition of matched betting is that it’s a low-risk strategy that involves making wagers but not gambling. In matched betting, instead of betting on one outcome, you place bets on all possible outcomes of an event to guarantee a profit, regardless of the result. Matched betting involves utilizing promotions and bonuses offered by online bookmakers, such as free bet offers, to offset any potential losses.
While it’s not necessarily a guaranteed way to make money, matched betting is completely legal and can be a viable option for anyone willing to put time and effort into the process.
How Matched Betting Works
The Matched Betting Process in a Nutshell
● Claim a new free bet or bonus offer at a betting website.
● Place a qualifying bet using the promotion.
● Place a second opposing bet — a lay bet — at a betting exchange.
● Regardless of the outcome, you’ll get a pay-out.
To understand how matched betting works, let’s look at the following example. You sign up with a bookmaker and claim a $50 free bet. Decide to use this offer to place a bet on a football match, say backing Manchester United to win at odds of 2.0. You would then need to place an opposing bet, also known as a lay bet, on a betting exchange, again at odds of 2.0. so, placing both bets, you have covered all the possible outcomes of the
match, so no matter what the result is, you will make a profit.
How is the profit made? Well, if Manchester United wins, you’ll win your free $50 bet back. On the other hand, if they lose or draw, you’ll win $50 on the betting exchange.
The Pros and Cons of Matched Betting
As proved in the example above, matched betting does work and is a relatively low-risk way to generate wealth. However, as with all investment strategies, there are both advantages and disadvantages to consider before getting started.
Firstly, matched betting does allow you to make a profit without risking a lot of money. Losses are typically at a minimum if you follow the strategy correctly, making matched betting a much safer way to earn an income than traditional gambling or even casino gaming strategies. Additionally, the profits you earn from the matched betting are tax-free in most countries (but do double-check the status in your country of residence).
One of the biggest pros of matched betting is that you don’t need to be a betting expert to reap the benefits of it. No prior knowledge of sports or betting is necessary to get started, and there are plenty of online resources available that can teach you the fundamentals of odds and betting. Furthermore, placing bets using the strategy is something you can do in your spare time, meaning you won’t need to be tied to your screen in the way that you would if you were making day trades or any other short-term investments.
The benefits of matched betting can be large, but if it sounds too good to be true, then rest assured there are inherent drawbacks to the method too.
For instance, matched betting can be time-consuming despite it being a flexible money- making strategy. It’s by no means a get-rich-quick scheme. You will need to spend time learning the strategy and searching for the best opportunities to consistently generate profits. Speaking of profits, the amount of money you can make from the process can be limited. Matched betting shouldn’t replace any long-term investment strategies.
It’s also important to be aware that bookmakers can restart your user accounts if they become suspicious about the profits you’re generating. Most bookies will only restrict your account if you surpass a winnings limit, so double-check the small print when registering. Then, of course, there’s the risk of human error when placing bets, which can lead to losses. Since matched betting does require your time and effort, it’s essential to follow the strategy correctly and double-check each wager you make to ensure you can continue making a
profit.
