When I first stumbled across matched betting, I was completely lost in a sea of jargon. Back, lay, mug bet… what did it all mean? If you’re feeling the same, don’t worry. In this post, I’m breaking down all the matched betting lingo you need to know to get started.
I had some understanding of basic sports betting but was by no means a gambler or proficient with the terminology. As you will soon learn, matched betting has many of its own phrases and they are important to know before delving into the profitable side hustle of matched betting.
Let’s get into the terms.
Back Bet
First up in the index of matched betting lingo is back bet. This is the traditional bet you place for something to happen. For example, betting £10 on England to win. If England wins, you win the bet and get paid according to the odds. You’ll usually place your back bets at a bookmaker like Bet365 or William Hill.
Back bets are what most people think of when they talk about betting, and these are the bets you place to claim welcome offers and free bets.
Lay Bet
A lay bet is the opposite of a back bet – you’re betting against something happening. For example, betting against England winning (so you win if they lose or draw). You’ll place lay bets on a betting exchange, like Betfair Exchange or Smarkets.
Lay bets are essential in matched betting because they let you cover all outcomes and eliminate risk. Understanding how to balance your back and lay bets is the foundation of matched betting. Click here for an in-depth article about the processes of matched betting.
Betting Exchange
This is where you place lay bets. Think of it like eBay but for betting – other people place back bets, and you’re offering the lay side of that bet. Exchanges connect bettors directly, and they charge a small commission on winnings.
Top exchanges for matched bettors include Betfair Exchange, Smarkets, and Matchbook. Without exchanges, matched betting wouldn’t be possible.
Qualifying Bet
This is the first bet you usually need to place to unlock a free bet or bonus with a William Hill or Bet365 bookie. For example, “Bet £10, Get £30 Free Bet.” You’ll place a qualifying bet and usually make a tiny loss (like £0.50), but it opens the door to free bets where you’ll make your risk-free profit.
Qualifying bets are the starting point of almost every matched betting offer. Think of them as your investment for unlocking profit later. This word comes up a lot in matched betting lingo and it’s important you know the difference between this type of bet and a free bet.
Free Bet
Once you’ve completed your qualifying bet, the bookmaker gives you a free bet. This is where the magic happens. You use the free bet with matched betting and lock in your risk-free profit, usually around 70-80% of the free bet value.
Free bet is the best phrase in matched betting lingo! They are your main source of earnings in matched betting.
SNR (Stake Not Returned)
When you use a free bet, most bookmakers operate under the SNR rule – Stake Not Returned. This means if you have a £10 free bet and it wins at odds of 5.0, you get £40 profit, not £50. The stake (£10) isn’t returned to you, only the winnings are.
This is really important when calculating your potential profits, and tools like the Outplayed profit calculator take this into account automatically. SNR offers are common, so knowing this makes it easier to plan your bets and profits.
Profit Calculator
This is a lifesaver. You type in your back odds, lay odds, and stake, and it tells you exactly what to bet and where. Using a profit calculator removes the guesswork and ensures you lock in profits on every offer.
If you’re using Outplayed (the only matched betting platform I recommend), they’ve got a built-in calculator that makes life much easier. These calculators also account for whether a bet is SNR or SR (Stake Returned), and allow you to adjust the betting exchange commission ensuring your figures are spot on.
Decimal/Fraction Odds
Odds are displayed in two formats: decimal or fractional. Decimal is simpler – you multiply your stake by the odds to see your return. For example, £10 at 3.0 odds returns £30 (including your stake). Fraction odds, like 2/1, show your profit relative to your stake. £10 at 2/1 returns £30 (£20 profit plus your £10 stake).
Matched betting uses decimal odds because they’re clearer when calculating back and lay bets. Outplayed odds matcher conveniently lists everything in decimal format, saving you the hassle. You normally have to change every betting website from fraction to decimal via the settings tab when first joining.
Bookies/Bookmaker
A bookmaker (or bookie for short) is the company that accepts your bets. These are the sites where you’ll place back bets and claim free bets, such as Bet365, SkyBet, or Paddy Power.
In matched betting, you’ll often open accounts with many different bookies to take advantage of their welcome bonuses and promotions. Keeping a record of which bookies you’ve used and what offers are available is a key part of staying organized. Read my 10 Important Matched Betting Tips here.
Mug Bet
A mug bet is a random bet you place without doing matched betting on it. Why? It makes you look like a regular punter and helps avoid getting gubbed (more on that next). Regular mug bets can help keep your bookmaker accounts active and profitable for longer.
They’re a small sacrifice to stay under the radar. I recommend placing mug bets on popular events with small stakes to look natural.
Gubbed
This is when a bookmaker restricts or bans you from promotions. They’ll still let you bet, but you won’t get any free bets or offers anymore. Getting gubbed limits your opportunities, so it’s worth spreading your betting activity and placing mug bets to delay restrictions.
Once gubbed, you can still place bets, but your value with that bookmaker drops. I’ve found mixing up sports, stakes, and timings can help prolong accounts.
Reload Offer
After you’ve finished the sign-up bonuses, reload offers keep the profits rolling in. For example, “Bet £20 In-Play, Get A £10 Free Bet.” These are ongoing promotions you can hit every week, and Outplayed is great at flagging up the best reload offers.
Reloads are a key way to maintain steady earnings once your initial profits are banked. Consistent reload offers can add hundreds to your monthly profits if you stay active.
Liability
This is the amount of money the betting exchange holds in case your lay bet loses. For example, if you lay Liverpool at odds of 3.0 for £10, your liability is £20 (you’re betting £20 against your £10 back bet). But as you have the other side covered with the bookie, there is no financial risk involved.
Understanding liability is crucial because it affects how much cash you need in your exchange account. Managing liability well keeps your bankroll healthy and avoids unnecessary risks. Higher odds increase your liability, so be strategic when choosing which bets to lay.
Spreading the Liability
A good way to limit your exposure – and reduce how much money you need in the exchanges – is by spreading the liability. This means placing multiple lay bets on different outcomes within the same game or race.
For example, say you place a £10 qualifying back bet on Man City to beat Southampton. Then you use a free bet to back the draw, and another free bet to back Southampton to win – all on the same game. At the exchange, you lay each of these outcomes separately.
Because only one result can happen, the exchange automatically adjusts your liability so you’re not risking the full amount on each outcome. Instead, it calculates the worst-case scenario and only holds enough liability to cover that. Spreading liability like this can free up cash in your exchange account.
Bankroll
Your bankroll is the pot of money you use for matched betting. I started with a few hundred, and within a few months, it snowballed. You don’t need a huge bankroll to start, but having enough to cover liabilities and multiple offers will speed things up.
I cover this and lots of other FAQs in my previous article Matched Betting Help: All The Important Questions Answered. Building a bigger bankroll over time lets you scale up your earnings and hit more offers at once.
Risk-Free Profit
This is the beauty of matched betting. Because you’re covering all outcomes, you lock in risk-free profit every time. It’s not gambling – it’s maths. Consistent risk-free profits add up over time, and with the right strategy, it’s possible to build a serious side income.
I’ve consistently used matched betting profits to fund my travel, and it’s changed the game for me.
Final Thoughts
When I first started, all this matched betting lingo felt like a foreign language. But once you crack it, it’s honestly one of the easiest ways to make consistent, tax-free money (if you’re in the UK).
If you’re serious about giving it a go, I can’t recommend Outplayed enough. Their tools and step-by-step guides made all the difference for me – check them out here.
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