Free bets are promotional offers from bookmakers where you get a bet without risking your own money. However, there are two main types:
For SNR free bets, you want to hedge (bet against yourself) to lock in guaranteed profit:
Select the type of free bet you have:
| Outcome | Free Bet Result | Hedge Bet Result | Net Profit/Loss | Total Return |
|---|
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Not all "Free Bets" are created equal. In the world of Matched Betting, the way you extract cash from a bonus depends entirely on whether the stake is returned to you. Understanding this distinction is the difference between keeping 40% or 80% of your bonus value. The core principle is simple: you use a betting exchange to lay off the opposite outcome, converting the free bet into guaranteed cash regardless of the result.
Most modern sportsbook sign-up offers are SNR. This means if you place a $10 free bet on a winner at 2.00 odds, you only receive the $10 profit, not the $10 stake. Your total return would be $10 (profit only). Because the stake is not returned, you need a different strategy to maximize your extraction percentage.
Step 1: Understand the SNR Payout
At odds 5.00, if your free bet wins:
Return = $100 × (5.00 - 1) = $400 profit (stake not returned)
Step 2: Calculate the Lay Stake
Lay Stake = $100 × (5.00 - 1) ÷ 5.00
Lay Stake = $100 × 4 ÷ 5.00
Lay Stake = $400 ÷ 5.00 = $80
Step 3: Calculate Your Guaranteed Profit
If Free Bet Wins (at 5.00 odds):
- Sportsbook pays: $400 profit
- Exchange result: You laid $80 at odds 5.00, so you pay the backer $80 × (5.00 - 1) = $80 × 4 = $320
- Net Profit = $400 - $320 = $80
If Lay Bet Wins (Free Bet loses):
- Sportsbook pays: $0
- Exchange result: You keep the backer's $80 stake
- Net Profit = $80
Result: You have converted a $100 SNR free bet into $80 guaranteed cash.
Extraction Rate: 80% (before exchange commission)
With 5% exchange commission: Profit = $80 × 0.95 = $76 (76% extraction rate)
Why Higher Odds Increase SNR Extraction:
At odds 3.00:
Lay Stake = $100 × (3.00 - 1) ÷ 3.00 = $100 × 2 ÷ 3.00 = $66.67
Profit = $200 - ($66.67 × 2) = $200 - $133.33 = $66.67
Extraction Rate: 66.7%
At odds 10.00:
Lay Stake = $100 × (10.00 - 1) ÷ 10.00 = $100 × 9 ÷ 10.00 = $90
Profit = $900 - ($90 × 9) = $900 - $810 = $90
Extraction Rate: 90%
The higher the odds, the closer your extraction rate gets to 100% (minus exchange commission).
Commonly found in "Risk-Free" first bets or loyalty bonuses, SR bets return both the profit AND the stake. If you place a $10 SR free bet at 2.00 odds and it wins, you receive $20 ($10 profit + $10 stake). Because the stake is returned, the optimal strategy is to hedge at lower odds to minimize capital tied up in the exchange.
Step 1: Understand the SR Payout
At odds 3.00, if your free bet wins:
Return = $100 × 3.00 = $300 ($200 profit + $100 stake)
Step 2: Calculate the Lay Stake
Lay Stake = $100 × 3.00 ÷ 3.00
Lay Stake = $300 ÷ 3.00 = $100
Step 3: Calculate Your Guaranteed Profit
If Free Bet Wins (at 3.00 odds):
- Sportsbook pays: $300
- Exchange result: You laid $100 at odds 3.00, so you pay the backer $100 × (3.00 - 1) = $100 × 2 = $200
- Net Profit = $300 - $200 = $100
If Lay Bet Wins (Free Bet loses):
- Sportsbook pays: $0
- Exchange result: You keep the backer's $100 stake
- Net Profit = $100
Result: You have converted a $100 SR free bet into $100 guaranteed cash.
Extraction Rate: 100% (before exchange commission)
With 5% exchange commission: Profit = $100 × 0.95 = $95 (95% extraction rate)
Why Lower Odds Are Better for SR:
At odds 10.00 with SR:
Lay Stake = $100 × 10.00 ÷ 10.00 = $100
Profit = $100 (same as at 3.00)
| Bonus Type | Payout Structure | Optimal Odds | Extraction Rate (0% comm) | Exchange Liability |
|---|---|---|---|---|
| SNR | Profit only | High (5.00 - 10.00) | 70% - 90% | High |
| SR | Profit + Stake | Low (2.00 - 3.00) | 95% - 100% | Low |
To convert any free bet into guaranteed cash:
Important: Always account for exchange commission (typically 2-5%) when calculating your expected profit. The examples above show gross profit before commission. Multiply your final profit by (1 - commission rate) to get your net cash.
A: SNR (Stake Not Returned): You only get the profit if you win. SR (Stake Returned): You get both stake and profit if you win. SNR is much more common (90%+ of offers).
A: Hedging converts a risky free bet into guaranteed profit. Instead of possibly winning big or losing everything, you lock in a smaller but certain profit.
A: A 70-80% conversion rate is excellent. This means a $100 SNR free bet converts to $70-80 guaranteed profit after hedging. Less than 50% is poor value.
A: No! Bookmakers prohibit hedging with them (it's called "matched betting"). Always use a different bookmaker for your hedge bet.
A: Odds can change quickly. Calculate your hedge just before placing it. If odds move unfavorably, you may need to adjust your hedge amount or find different odds.
A: The main risk is odds changing between calculation and betting. Also, bookmakers may restrict accounts if they detect consistent profitable hedging.