Seen on:
as known from New York Timesas known from USA Todayas known from yahoo!
VA
The Grueling Truth - Where Legends Speak / Betting Guide / What is Lay Betting? A Simple Guide to Laying a Bet

What is Lay Betting? A Simple Guide to Laying a Bet

Publish Date: 02/08/2022
Fact checked by: Mike Goodpaster

Strategies for Lay Betting

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 explained – what does lay mean in betting?

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.

How does a lay bet work – lay betting strategies

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.

Stake calculations – know the drill

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.

Betting exchange – what is it?

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.

Top rated online betting sites

DraftKings
1.
4.6/5
New Customers Bet $5, Get $300 in Bonus Bets If Your Bet Wins!
USA
USA Players Welcome
PayPal
VIP Preferred
Play+
Virginia (US) Lottery Board
Bet now
T&Cs and 21+ apply
FanDuel
2.
4.6/5
Bet $5 Get $200 in Bonus Bets If Your Bet Wins!
USA
USA Players Welcome
Prepaid Card
PayNearMe
PayPal
Virginia (US) Lottery Board
Bet now
Gambling Problem? Call 1-800-GAMBLER or visit RG-help.com. Call 1-888-789-7777 or visit ccpg.org/chat (CT). Hope is here. Gambling HelpLineMA.org or call (800) 327-5050 for 24/7 support (MA). Visit www.mdgamblinghelp.org (MD). Call 1-877-8HOPE-NY or text HOPENY (467369) (NY). 21+ (18+ D.C.) To claim, new users need to register, make a first-time deposit of $5 or more, and then simply place their first real-money wager on any FanDuel Sportsbook market (no odds limits) that is live on platform. All users will receive their $200 in Bonus Bets If Your Bet Wins within 72 hours of the bet settlement. Restrictions apply. See terms at sportsbook.fanduel.com.
BetMGM
3.
4.5/5
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
USA
USA Players Welcome
PayNearMe
Skrill
PayPal
Virginia (US) Lottery Board
Bet now
Gambling problem? Call 1-800-GAMBLER (Available in the US) Call 877-8-HOPENY or text HOPENY (467369) (NY) Call 1-800-327-5050 (MA) 21+ only. Please Gamble Responsibly. Call 1-800-NEXT-STEP (AZ), 1-800-BETS-OFF (IA), 1-800-981-0023 (PR). Rewards are non-withdrawable bonus bets that expire in 7 days. In partnership with Kansas Crossing Casino and Hotel. See BetMGM.com for Terms. US promotional offers not available in DC, Mississippi, New York, Nevada, Ontario, or Puerto Rico.
Bet365
4.
4.5/5
Get $150 in Bonus Bets Win or Lose when you bet $5!
USA
USA Players Welcome
Virginia (US) Lottery Board
Bet now
GAMBLING PROBLEM? CALL OR TEXT 1-800-GAMBLER (AZ/CO/IL/IN/KY/LA/NC/NJ/OH/PA/TN/VA) or 1-800-BETS OFF (IA). 21+ only (18+ in KY). Must be present in AZ/CO/IA/IL/IN/KY/LA(select parishes)/NC/NJ/OH/PA/TN/VA. *This Referral Code is used for marketing/tracking purposes only. Minimum wager $5. Minimum odds -500 or greater. $10 minimum deposit. Paid in Bonus Bets. Bonus Bets wager excluded from returns. New customers only. Available in app only. Max. prize, game restrictions, time limits and T&Cs apply.
Caesars
5.
4.5/5
Bet $1, Double Your Winnings Your Next 10 Bets
USA
USA Players Welcome
E-Check
PayNearMe
PayPal
Virginia (US) Lottery Board
Bet now
21+ New users only. Must register using eligible promo code. First bet after registration must qualify. Max. Bonus Bet: $1,000. Bonus Bet expires 14 days after receipt. Void where prohibited. See Caesars.com/promos for full terms. Gambling Problem? 1-800-GAMBLER (1-800-426-2537)

How to place a lay bet?

Now that the basics of lay betting are explained, we will guide you step-by-step on how to place a lay bet.

Find your chosen market

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.

Select the lay box

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.

Input your stake

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.

Place a bet

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.

Lay betting explained – other betting strategies

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.

Multiple bets

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.

System bet

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.

Rising method

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.

Lay betting explained – enjoy winning and no risk of banning

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.

Conclusion

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.

Always sign up with a quality bonus

DraftKings
1.
4.6/5
New Customers Bet $5, Get $300 in Bonus Bets If Your Bet Wins!
USA
USA Players Welcome
Min. Deposit: 5
Open DraftKings
Get bonus now
T&Cs and 21+ apply
FanDuel
2.
4.6/5
Bet $5 Get $200 in Bonus Bets If Your Bet Wins!
USA
USA Players Welcome
Wagering (WR): 1x Deposit, Min. Deposit: $5
Open FanDuel
Get bonus now
Gambling Problem? Call 1-800-GAMBLER or visit RG-help.com. Call 1-888-789-7777 or visit ccpg.org/chat (CT). Hope is here. Gambling HelpLineMA.org or call (800) 327-5050 for 24/7 support (MA). Visit www.mdgamblinghelp.org (MD). Call 1-877-8HOPE-NY or text HOPENY (467369) (NY). 21+ (18+ D.C.) To claim, new users need to register, make a first-time deposit of $5 or more, and then simply place their first real-money wager on any FanDuel Sportsbook market (no odds limits) that is live on platform. All users will receive their $200 in Bonus Bets If Your Bet Wins within 72 hours of the bet settlement. Restrictions apply. See terms at sportsbook.fanduel.com.
BetMGM
3.
4.5/5
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
USA
USA Players Welcome
Min. Deposit: $5
Open BetMGM
Get bonus now
Gambling problem? Call 1-800-GAMBLER (Available in the US) Call 877-8-HOPENY or text HOPENY (467369) (NY) Call 1-800-327-5050 (MA) 21+ only. Please Gamble Responsibly. Call 1-800-NEXT-STEP (AZ), 1-800-BETS-OFF (IA), 1-800-981-0023 (PR). Rewards are non-withdrawable bonus bets that expire in 7 days. In partnership with Kansas Crossing Casino and Hotel. See BetMGM.com for Terms. US promotional offers not available in DC, Mississippi, New York, Nevada, Ontario, or Puerto Rico.
Bet365
4.
4.5/5
Get $150 in Bonus Bets Win or Lose when you bet $5!
USA
USA Players Welcome
Wagering (WR): 1x Bonus, Min. Deposit: $10
Open Bet365
Get bonus now
GAMBLING PROBLEM? CALL OR TEXT 1-800-GAMBLER (AZ/CO/IL/IN/KY/LA/NC/NJ/OH/PA/TN/VA) or 1-800-BETS OFF (IA). 21+ only (18+ in KY). Must be present in AZ/CO/IA/IL/IN/KY/LA(select parishes)/NC/NJ/OH/PA/TN/VA. *This Referral Code is used for marketing/tracking purposes only. Minimum wager $5. Minimum odds -500 or greater. $10 minimum deposit. Paid in Bonus Bets. Bonus Bets wager excluded from returns. New customers only. Available in app only. Max. prize, game restrictions, time limits and T&Cs apply.
Caesars
5.
4.5/5
Bet $1, Double Your Winnings Your Next 10 Bets
USA
USA Players Welcome
Wagering (WR): 1x Deposit
Copy
Get bonus now
21+ New users only. Must register using eligible promo code. First bet after registration must qualify. Max. Bonus Bet: $1,000. Bonus Bet expires 14 days after receipt. Void where prohibited. See Caesars.com/promos for full terms. Gambling Problem? 1-800-GAMBLER (1-800-426-2537)

Lay Betting Explained FAQs

💡 What are the best sports for lay betting?

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.

📲 Can I lay bet on a mobile app?

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 2025.

💵 How much does a lay bet pay?

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.

Read Also
What Is a Bet Slip? | Bet Slip Meaning Explained
When you’re starting to bet online, one of the first things you’re ...
Action Reverse Bet Meaning: What Is an Action Reverse Bet?
A rule of thumb in sports betting is to always understand the ...
Bet365 Promo
Best Matched Betting Strategy for 2025: Expert Matched Betting Guide
Finding a great betting strategy can go a long way towards helping ...
Draw No Bet Guide 2025: What Does Draw No Bet Mean?
If you are here to find the answer to the question “What ...
What Does Asian Handicap Mean? Asian Handicap Explained in 2025 with Examples
If you’re looking for Asian handicap explained in detail, then you’ve come ...
What Does 1×2 Mean in Betting? 1×2 Betting Explained (+ Tips & Strategy)
The world of betting is filled with terminologies that newbies may find ...
Betting Exchange: Sports Betting Exchange Sites & How does Betting Exchange Work?
Have you ever wondered what a draw no bet means? Or asked ...
Which Betting Sites are the Best for Beginners? Bet on Sports With the Easiest Sportsbooks To Use?
Millions of people in the United States and around the world enjoy ...
System Bet Guide: How Does System Betting Work (+ Examples of A System Bet)?
If you need a system bet explained to you then you have ...
What is a Multiple Bet? Complete Multiple Bet Guide 2025
Sometimes, a straight bet just doesn’t do the job. You’re confident in ...
Top Betting Sites
Top Betting Bonuses
DraftKings
DraftKings
DraftKings Review
4.6/5
FanDuel
4.6/5
BetMGM
4.5/5
Bet365
4.5/5
Caesars
4.5/5
DraftKings
DraftKings Promo
New Customers Bet $5, Get $300 in Bonus Bets If Your Bet Wins!
T&Cs apply
4.6/5
FanDuel
FanDuel Promo
Bet $5 Get $200 in Bonus Bets If Your Bet Wins!
T&Cs apply
4.6/5
Gambling Problem? Call 1-800-GAMBLER or visit RG-help.com. Call 1-888-789-7777 or visit ccpg.org/chat (CT). Hope is here. Gambling HelpLineMA.org or call (800) 327-5050 for 24/7 support (MA). Visit www.mdgamblinghelp.org (MD). Call 1-877-8HOPE-NY or text HOPENY (467369) (NY). 21+ (18+ D.C.) To claim, new users need to register, make a first-time deposit of $5 or more, and then simply place their first real-money wager on any FanDuel Sportsbook market (no odds limits) that is live on platform. All users will receive their $200 in Bonus Bets If Your Bet Wins within 72 hours of the bet settlement. Restrictions apply. See terms at sportsbook.fanduel.com.
BetMGM
BetMGM Promo
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
T&Cs apply
4.5/5
Gambling problem? Call 1-800-GAMBLER (Available in the US) Call 877-8-HOPENY or text HOPENY (467369) (NY) Call 1-800-327-5050 (MA) 21+ only. Please Gamble Responsibly. Call 1-800-NEXT-STEP (AZ), 1-800-BETS-OFF (IA), 1-800-981-0023 (PR). Rewards are non-withdrawable bonus bets that expire in 7 days. In partnership with Kansas Crossing Casino and Hotel. See BetMGM.com for Terms. US promotional offers not available in DC, Mississippi, New York, Nevada, Ontario, or Puerto Rico.
Bet365
Bet365 Promo
Get $150 in Bonus Bets Win or Lose when you bet $5!
T&Cs apply
4.5/5
GAMBLING PROBLEM? CALL OR TEXT 1-800-GAMBLER (AZ/CO/IL/IN/KY/LA/NC/NJ/OH/PA/TN/VA) or 1-800-BETS OFF (IA). 21+ only (18+ in KY). Must be present in AZ/CO/IA/IL/IN/KY/LA(select parishes)/NC/NJ/OH/PA/TN/VA. *This Referral Code is used for marketing/tracking purposes only. Minimum wager $5. Minimum odds -500 or greater. $10 minimum deposit. Paid in Bonus Bets. Bonus Bets wager excluded from returns. New customers only. Available in app only. Max. prize, game restrictions, time limits and T&Cs apply.
Caesars
Caesars Promo
Bet $1, Double Your Winnings Your Next 10 Bets
T&Cs apply
4.5/5
21+ New users only. Must register using eligible promo code. First bet after registration must qualify. Max. Bonus Bet: $1,000. Bonus Bet expires 14 days after receipt. Void where prohibited. See Caesars.com/promos for full terms. Gambling Problem? 1-800-GAMBLER (1-800-426-2537)
Latest Sport News
Why Scott Foster is Called “The Extender” in the NBA: A Deep Dive...
In the high-stakes world of the NBA playoffs, ...
ABA vs. NBA Exhibition Game History: A Detailed Look at a Forgotten Rivalry
From 1971 to 1975, the American Basketball Association ...
A Detailed History of the Utah Stars in the ABA (1970–1976)
The Utah Stars were one of the ABA’s ...
Ted Kluszewski: The Big Bopper of Baseball
Ted Kluszewski was more than just a feared ...
The 2025 Formula 1 Canadian Grand Prix
After a wild and sometimes controversial end to ...
Our Team
Mike GoodpasterJosh SchwartzSimon BriffaMark LewisSamuel Teets
+8
Mike Goodpaster
Mike Goodpaster
Chief Editor
Josh Schwartz
Josh Schwartz
Editor
Simon Briffa
Simon Briffa
Sports Editor
Mark Lewis
Mark Lewis
Editor
Samuel Teets
Samuel Teets
US Sports Veteran
Author Icon
drjaygee
Editor
Find out what the legends have to say about sports this week....
Find out what the legends have to say about sports this week....

21+ and present in VA. Gambling Problem? Call 1-800-GAMBLER.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.
Virginia Town HallCloudflareSSL
Close
Our Sports Pros recommend these awesome sports betting sites this week:
DraftKings
DraftKings Promo
New Customers Bet $5, Get $300 in Bonus Bets If Your Bet Wins!
T&Cs and 21+ apply
Code:
Open DraftKings
Get Bonus
FanDuel
FanDuel Promo
Bet $5 Get $200 in Bonus Bets If Your Bet Wins!
T&Cs and 21+ apply
Code:
Open FanDuel
Get Bonus
BetMGM
BetMGM Promo
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
T&Cs and 21+ apply
Code:
Open BetMGM
Get Bonus
×
Your Promo Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Play now