Last Updated on 09/12/2022
Fact checked by: Mike Goodpaster
If you are new to the world of gambling and do not know the difference between lay betting and traditional betting, we have lay betting explained for you in this comprehensive guidebook.
A beginner’s guide to lay betting is necessary to understand the nuances associated with an online betting exchange. Hence, this lay betting guide curated by our industry experts will take you on a comprehensive journey into the world of lay betting and betting exchanges, which is not as complicated as it sounds. So, let’s delve into the whole process.
Lay Betting is a system in gambling that allows the gamblers to take on the role of a traditional oddsmaker where you set the odds of a bet. It basically means backing something not to happen.
In simple words, you are betting on a team not to win instead of hoping for them to win. Therefore, you are potentially winning a backer’s stake if the selection loses. However, if your selection wins, you will lose your backer’s stake multiplied by the selection price along with the stake amount.
You will often find new gamblers confused about the meaning as it looks quite complex. On first impression, it isn’t easy to understand. But fret not! We ensure lay betting is explained most easily. In simpler terms, you are essentially betting on a horse not to win the race, you are betting on a football team assumed to lose, or you are betting on a golfer not to make a birdie on a particular hole. That’s lay betting for you!
For example, consider the case of horse race betting. Suppose a famous racehorse has fallen ill, yet the jockey places him in the next race. Now, you get an opportunity to make some money here as you can take someone else’s bet on that horse. Earlier, that would have been difficult as it involved backing other horses in the market for different amounts.
However, when you go through lay betting, you can bet on a horse bound to lose. If the horse fails to win, you win the liability placed on the horse with the lay bet. So, while it is always tough to know the eventual outcome of a horse race, you will find it easier to take a stance on a horse that will definitely lose.
When you are partaking in lay betting, it is also essential for you to know that you can lose more than you have staked.
For instance, if you are laying a 2/1 shot for $50, you will get $50 if the horse loses. However, if you are wrong, you stand to lose $100 due to the increased liability that exists. Here, liability refers to the money you can lose when striking a lay bet.
When you are betting on traditional gambling, you are only going to lose your initial stake. However, in lay betting, explained above in the article, your overall liability is the total amount you will lose if your selected horse wins.
A betting exchange is a platform to lay bets, so it is basically a marketplace for gamblers. You can compare it to a stock market where you deal with winners or losers. You can buy or sell any outcome you desire in your chosen horse race or sports game in a betting exchange. You can also lay a horse to lose at a price offered and trade-in or out at any time during an ongoing event. This way, you can easily secure a profit even if the outcome does not go according to your prediction. Besides, the betting exchange charges a nominal commission on each bet, and the customers set the market by offering their prices on each outcome.
Gamblers bet against each other in the betting exchange and dictate what amount they want to back or lay on any outcome. Therefore, the fluctuations in terms of price are significant as different gamblers take a viewpoint on how an event will unfold. So punters act as bookmakers and set their own odds after accepting bets by using the odds offered by other users.
Now that the basics of lay betting are explained, we will guide you step-by-step on how to place a lay bet.
After selecting a betting operator, head to the live betting section and pick the market that attracts you the most. Although there are many operators in the market, the screen layout is similar for all. You will notice two different boxes. Usually, the blue box is for your traditional betting, while the pink one is for your lay betting.
Let us assume that you are betting on a horse in the Kentucky Derby not to win the race. Then, after you select the pink box, you will be able to view your bet slip on the right-hand side of the screen.
Now you can add your preferred stake after adding your selection to the bet slip. It’s quite different from your traditional bet as you are staking an amount for other gamblers on the site to bet on.
If you are the bookmaker for a website, it is the amount that your customers will hand you for betting. You’ll be able to see a number below the screen, which will be your liability. Further, there will be a potential payout that you are going to hand the customers if they win.
The formula to calculate a liability is as follows:
Stake x ( lay odds – 1 ) = Liability
So for a $100 stake at odds of 11.0, your liability will be 100 x (11-1), which is equal to $1000.
You will find a ‘place bets’ button on the screen. After you click on it, the money will go into the market, and other gamblers will match your amount. If any other gambler already has an amount in the system at the same price, they will be matched with you immediately. But if there aren’t any customers, you will have to wait for a while for another bettor to match your offered price.
If your lay bet wins, you will be receiving all of the staked amounts after taking out the operator’s commission. Usually, the commission percentage lies in the range of 2% to 5%. On the other hand, if you are losing, you will have to pay the liability from your purse.
Experienced gamblers often use lay betting systems to maximize their profits. However, this requires an in-depth knowledge of not just lay betting but also other betting strategies, some of which are explained below.
In multiple bets, you combine a series of single bets into one wager to multiply your odds. A multi-bet combines various types of bets like margin bet and fixed-odds bet. You are placing an additional leg on each bet, and every time that leg is successful, the winning amount is wagered on the next leg. So the more you bet, the more chances you have to get a significant profit. If you want to learn more about it, our experts have everything you need to know about multiple bets explained here.
A system bet is an upgrade from accumulator bets, and it’s quite similar to multiple bets but with one placement. In a system bet, you need to know how many events you want to bet on and how many events you need to win to make a profit.
You can use different types of bets, but all the possible combinations will be fashioned from individual bets. So to place a system bet, you have to select a minimum of three separate events and a maximum of 8 or 9 events. To learn more about system betting, visit this expert guide on system bet explained.
The rising method in betting is also called the Martingale system. It’s pretty popular among blackjack players and sports bettors. The rising method is quite simple as your aim is to double your bets after each loss. It lets you recover your losses by turning them into a significant profit. For example, when you lose a wager in a sports match, you then double your stake for your next bet. This method continues till you recover your stake. However, you need to be very careful when using this strategy as it comes with some serious pitfalls, as you can read here in this rising method explained article.
Traditional bookmakers often resort to banning successful bettors. In addition, even betting on multiple outcomes could lead to a ban. So bettors become victims of their own success. However, as you would have noticed in this lay betting explained article, betting exchanges only charge a percentage for your wins. So, it doesn’t matter whether you win or lose, and hence, they don’t have to ban you for being successful.
Now that you know everything about lay betting, you no longer have to pick a winning side. Moreover, lay betting gives you a chance to adorn the hat of a bookmaker. However, do keep in mind that it’s a risky strategy, so start slow and always play safely initially. Also, if you found this lay betting guidebook of value, then you will certainly enjoy the online betting guides from our industry experts like this oddsmaker explained guidebook.
Before picking on a sport to test out lay betting, you have to be thorough with the basics of the best betting strategies. To help you out, our betting experts at TheGruelingTruth.com have prepared numerous betting strategy guidebooks, including a lay betting explained guidebook.
Many online sportsbook operators nowadays provide mobile apps due to their high demand. You can check out the provisions for laying betting via mobile apps in our list of the best sportsbooks apps in 2022.
The payout in lay betting depends on numerous factors. To learn more about how to calculate your possible winnings, please go through our comprehensive lay betting explained guidebook.