Liability in betting, What is it?
When we talk about liability we don’t mean your mate Dave on a night out, we are talking about a completely different type of liability.
What is Liability in Betting?
Liability in Matched Betting is the amount you lose, or pay out, when a lay bet loses. Unlike back bets where you only lose the amount you stake no matter what the odds are, the liability of a lay bet is dependent upon the odds. The easiest way to demonstrate this is through an example.
Example of Liability in Matched Betting
Take a look at Hull vs Sunderland. Say we want to “lay” £20 on Hull. We work out the liability by multiplying the stake (£20 in this case) by the lay odds minus 1 (2.2 – 1 = 1.2). We take away 1 from the lay odds as the initial value will include the backer’s stake.
Say we want to “lay” £20 on Hull. We work out the liability by multiplying the stake (£20 in this case) by the lay odds minus 1 (2.2 – 1 = 1.2). We take away 1 from the lay odds as the initial value will include the backer’s stake.
20 x 1.2 = 24
We stand to win £20 if Hull don’t win, and lose £24 if Hull do win (not taking commission into account).
Liability in betting may seem confusing at first, but just think of it as you are taking the role of the bookmaker. When you place a bet at a bookmaker and that bet loses, the bookmaker gets your stake. We are just taking that bookmaker role and saying “look, I’m offering to take on a £20 bet, if you’re wrong I’ll keep your £20, if you’re right I’ll pay you out at odds of 2.2”. Someone then accepts our offer (matches our lay bet), then dependant on the outcome, we either pay out £24 or win £20.
Still confused about Liability in Matched Betting?
If you’re still confused about Liability in Matched Betting, head onto Betfair betting exchange and play around with some different stakes and odds and see how the liability changes. It’s sometimes easier to see for yourself rather than have someone try to explain it.