Lay Betting Explained: A beginners' guide to laying bets online

Lay betting is essentially the act of betting against something happening, and through this acting as the bookmaker yourself.

This can only be done via betting exchanges, and with the steadily increasing popularity and benefits of these we have created this piece so you too can take advantage of lay betting.

We have also compiled a list of the best bookmakers that you can lay bets on, alongside their impressive sign up offers.

What are Betting Exchanges?

Betting exchanges in their simplest form are just a method by which players are connected and can then bet against each other instead of the bookmaker.

Instead of betting against the house, like you do on all other betting sites, you are betting against another player.

So in these cases instead of placing a bet and then taking your winnings from the bookmaker, like bet365, you are taking your winnings from another player on the exchange.

This is done through a series of backing and laying bets, that are then matched up against each other to set a bet. In this article, we will focus on the latter.

If bets are unable to be matched up then funds are returned to users accounts.

It is also certainly worth noting that when playing on betting exchanges you can see better odds and prices than those provided by regular bookmakers.

This is because of a number of reasons, including the confidence certain people have in their own bets, whereas bookmaker's prices are tempered by stats, figures and algorithms.

Players also want to see their bets matched up against others, in order to have the chance to earn winnings, and the best way of securing a match is by providing the best odds around.

It must be noted that the exchange betting sites take a percentage of your winnings as commission, this is usually between 2%-5%.

Laying

Now that you know about the basics of the exchange it is time to discuss laying.

On the exchange if you are lay betting you are acting as the bookmaker.

This means you set the odds you are offering and the available stake.

This is what backers will look at and then be able to play on and up to.

Once this is set then another player must match your bet and back the inverse. This is not guaranteed however, if a lay is not matched then you will lose nothing.

But you, as the layer, must have enough funds to cover the entire bet should you lose.

For instance, if you were to lay a bet of ‘Manchester City to Not Win’ at odds of 3/1 with an available stake of £10.

Then you as the layer, must have at least £30 in your account, to be able to cover potential winnings you will have to pay out, this is called the liability.

Benefits of Laying

There are, however, some crucial benefits to laying.

This is in the sense that the probability is more heavily weighted in your favour because you are betting on something not happening, or in other words every other possibility.

Whereas backers are betting on just one potential outcome, you just need any other of the possible outcomes to occur.

So for the above example.

You have bet on ‘Man City Not to Win’.

Because a football match only has three possible outcomes:

• Man City Win
• Draw
• Other Team Wins

The probability of your lay winning is 66.6%. Because if the match ends in a draw or with the other side winning then your bet of ‘Man City Not to Win’ is satisfied.

The probability of the backer winning is only 33.3% because they need City to win the match.

This is where the benefits of lay betting lie because the probability is more heavily weighted in your favour as all other outcomes allow you to win.

Drawbacks of Lay Betting

Whilst Lay betting may seem like a great idea from the above examples there are a few drawbacks that players need to be aware of.

Firstly is the fact that lay bettors require other punters to engage in the bet with them to make any money.

Secondly, is that players often require a large set of funds in their account in order to be able to payout should they lose.

Both of these work in tandem together, impacting upon one another, as it can prove a tough balancing act.

Of course, layers want their bets to be picked up and wagered upon. But, to do so it must be appealing, i.e. having high odds and max stakes, so the punter can potentially win some decent profits.

Therefore layers will need a wealth of funds in their account, so to pay out these sums, should their bet lose.

Players need to strike a balance between the two, and this can really only come with experience. Laying bets can be tough, but as shown above, the probability is in the layer's favour.

Lay Betting FAQs

What is a lay bet?

Simply, a lay bet is when a player backs something not to happen.

Other players will then bet against this and one person will win and one will lose, making up the basics of an exchange.

Is lay betting legal?

Yes, lay betting is completely legal in the UK.

Multiple exchange-based betting sites make this process supremely simple and easy, with the Betfair Exchange being the premier service for this in the UK.

What is a liability?

Liability is the amount a player is required to payout should their lay bet lose.

When laying a bet this will more often than not be the second number presented, with a £ next to it, sometimes in brackets. Players must make sure to have this amount in their account so they can pay this liability, to the other player, should their lay bet lose.

Can I lay bets with all bookmakers?

No, not all bookmakers will allow players to lay bets.

Only exchange-based betting sites will allow players to lay a bet, these being the likes of the Betfair Exchange, Spreadex and Smarkets.