What is the difference between a bookmaker and a betting exchange?
To understand matched betting it is vital to distinguish the difference between ‘placing’ a bet with a bookmaker and ‘laying’ a bet with a betting exchange. When placing a bet with a bookie you are betting for an outcome (eg. Team A to win) and get paid out if it happens. In contast, when ‘laying’ a bet with a betting exchange you act as the bookie, offering the bet (eg. Team A to win) to others and essentially betting against the outcome of the bet (eg. Team A to draw or lose). As a result you get paid with the money ‘laid’ by the person betting if the outcome in question does nothappen. Bet365 and William Hill are examples of online bookmakers while Betfair is an example of an online betting exchange. How matched betting works Let’s say you see an advertisement online for a £20 free bet for signing up to an online bookmaker and want to make your matched bet on how many goals (let’s say in this case, +2.5 goals) will be scored in Premier League football match between Arsenal and Manch
