You may have noticed in my matched betting guide that we placed our free bet at high odds. There’s a reason for that and I’ll explain why.
Once we’ve received a free bet, it’s time to extract our profit. The vast majority of free bets are ‘stake not returned’, which means that we only get the winnings back and not the free bet stake itself.
Say, for example, we have a £10.00 free bet that wins at odds of 3.00 (2/1). We would win £20.00 cash and the £10.00 free bet stake would not be returned.
We can maximise our extracted profit by placing our free bets at high odds, which accounts for the fact that the free bet stake is not returned.
Which outcome should I choose?
Following on from my Qualifying Bet Strategy example, I’ll show you how to extract your profit from the Ladbrokes £50.00 free bet.
Before we go ahead and place a free bet, it’s important that we double check the free bet terms.
There may be restrictions on how we can use them, such as having to be placed on specific markets or at certain odds.
I’ve opted to place my free bet on a football match between Juventus and Sporting Lisbon…
As you can see, we can place our free bet on a Juventus win, a draw or a Sporting Lisbon win. In order to determine which selection gives us the biggest profit, we need to input the figures into the matched betting calculator.
The results are as follows…
|Outcome||Back Odds||Lay Odds||Exchange Liability||Profit Extracted|
As you can see, placing our free bet on Sporting Lisbon to win (the highest odds), allows us to make the biggest profit of £38.08. If we bet on a draw, we’ll make £34.27 profit and if we bet on Juventus to win, we’ll make a rather small £14.84 profit.
Obviously, we need back and lay odds that are fairly tight, but generally speaking, the higher the odds, the more profit we’ll extract from our free bets.
It’s also important to note the exchange liability figures. Our exchange liability is the amount we stand to lose from our Betfair account in the event that our lay bet loses. As you can see, the higher the odds, the more money we need in our Betfair account to place the lay bet.
There may be occasions where you don’t quite have enough exchange funds to go for the most profitable option. There’s nothing wrong with placing your free bet on an outcome with a smaller exchange liability, you’ll just make a slightly smaller profit.
For more information about lay betting, please see my Betting Exchange Guide.
Placing our free bet
We know we need to place our £50.00 free bet on Sporting Lisbon at Ladbrokes as this is the selection that gives us the biggest profit. All we need to do now is work out our lay stake for the Betfair bet…
As you can see, the calculator tells us that our lay stake should be £40.11…
So, all we need to do is click on the ‘9.4’ lay button and enter our stake of £40.11. It tells us that our liability on this bet is £336.92 and it’s good practice to check this figure against the expected liability on the matched betting calculator. As you can see, they’re both the same, so we know we have entered the correct lay stake.
We’ll need to deposit enough funds into our Betfair account to cover our £336.92 liability as this is the amount we stand to lose from Betfair if Sporting Lisbon win. Don’t worry though, our winnings at Ladbrokes will more than cover it.
Let’s have a look at our resulting profit/loss for the two outcomes…
|Sporting Lisbon win||+ £375.00 – £336.92 = £38.08 profit|
|Sporting Lisbon don't win||- £0.00 + £38.10 (£40.11 minus 5% commission) = £38.10 profit|
So regardless of whether Sporting Lisbon win, lose or draw, we’ll extract guaranteed cash of £38.08 from our £50.00 free bet.
As mentioned earlier, our bankroll will determine how much cash we are able to extract from our free bets. As a rule of thumb though, we should be looking to extract an average of around 75%. Sometimes we’ll be able to extract more and it’s absolutely fine to extract less.
Always place your free bets at high odds. You’ll need more money in your exchange account but it’ll help you maximise your profits!