Definition
A lay bet is the opposite of a standard (back) bet. When you lay a selection, you are betting that it will NOT win. You essentially take on the role of the bookmaker, accepting someone else's back bet. Lay bets are only available on betting exchanges like Betfair, Smarkets, and Betdaq -- traditional bookmakers do not offer them.
How It Works
When you lay a selection, you set the odds and the amount you are willing to risk. Your liability (maximum loss) equals the backer's potential profit: Liability = Backer's Stake x (Odds - 1). If the selection loses (your desired outcome), you keep the backer's stake minus exchange commission. If the selection wins, you pay out the backer's profit.
Example
You lay Manchester United to win at odds 3.00 for a backer's stake of $50:
- Your liability: 50 x (3.00 - 1) = $100
- If Man Utd draws or loses: you win the backer's $50 stake (minus ~5% commission = $47.50 profit)
- If Man Utd wins: you pay out $100 to the backer
Why It Matters
Lay betting opens up strategies impossible with traditional bookmakers: matched betting (combining free bet promotions with lay bets for risk-free profit), trading (backing low and laying high as odds move), and market-making. Understanding lay bets is essential for any bettor looking to go beyond recreational betting. The ability to bet against outcomes also provides hedging flexibility and is fundamental to arbitrage strategies between exchanges and bookmakers.
Use our lay bet calculator to determine your exact liability and profit for any lay bet, accounting for exchange commission.