Extracting a SNR Free Bet

Let’s continue our previous matched betting example with Totesport £10 free bet. You’ve successfully placed the qualifying bet and your account is credited with a £10 free bet. Now it’s time to cash it in.

You have to once again found a selection that has similar odds on Betfair and Totesport: suppose that there’s a soccer game between Manchester United and Manchester City and the odds for the draw are 4.0 on both Betfair and Totesport.

You place your Totesport £10 free bet on the draw at 4.0. If the draw occurs, this bet returns £30 as its stake is not included in winnings. If either of the teams wins, you don’t lose anything as you aren’t betting with your own money.

Sounds good, doesn’t it? You can gain £30 without risking anything. The only problem is that the game is not very likely to end with a draw.

Fortunately you can place a lay bet on the draw with Betfair to secure a profit regardless of the outcome of the game. But there’s a little trick – since the free bet doesn’t return its stake, the lay stake has to be smaller than £10.

If you were to place a £10 lay bet on the draw at 4.0, the liability would be £30. Thus you wouldn’t make any profit if the game ended with a draw (you would lose £30 with Betfair and win £30 with Totesport, which nets zero).

Therefore you should lay only £7.50; such bet can win its stake (£7.50) and has a liability of £22.50 (£7.50*3.0). If the game ends with a draw, you win £30 with Totesport and lose £22.50 with Betfair, gaining £7.50.

If either of the teams wins, you lose nothing with Totesport as you aren’t betting with your money, but the lay bet with Betfair wins £7.50. Therefore you net £7.50 regardless of the outcome of the game!

To calculate the appropriate lay stake, use our matched betting calculator. It also takes into account Betfair commission and discrepancies in odds.

You should use matched betting calculator whenever you do any matched betting. Due to different factors, such as discrepancies in odds and commission it is very hard to calculate the optimal lay stake without it. Note that optimal in this case means that you m ake the same amount of money regardless of the outcome of the bet.

If you extracted this £10 free bet at odds of 2.0, you could only gain £5; if the odds were 3.0, you would net £6.66, but at 5.0 you would get £8.

Therefore it’s a good idea to use rather high odds (4.0 – 6.0) for extracting SNR free bets. But don’t forget that you must have enough funds in your Betfair account to cover the liability.

Gaining £7.50 may not be too tempting, but £10 is the smallest of all free bets that I used as an example. Once you’re done with the first bookie, simply move on to another one from our free bet list.

Start with the smallest of free bets and progress gradually. Gain funds and experience with small SNR free bets before you move on to larger ones. And, please, read this tutorial until the end before you start or you’ll miss many absolutely essential things.

Bonuses that Refund a Losing Bet

Recently a new kind of free bets has become increasingly popular: bonuses that refund a losing stake. These offers typically refund the stake of your first bet in case it loses. Betdaq Free Bet is a good example of such offer.

While this may sound confusing, you have to treat such free bets exactly the way you treat SNR free bets. These offers are in fact SNR free bets except they do not even require a qualifying bet.

Think about it – if your first bet loses, you do not lose anything. But if your first bet wins, your profits are equal to what you win, excluding your initial stake (even though you do get your stake back, it is not your profit). Select SNR free bet in matched betting calculator when dealing with such offers.

If your first bet loses and you get a refund, most bookies will not let you withdraw that money immediately. Instead, you will have to do matched betting again. This time you must deal with this money as if it was a qualifying bet.

Next: Extracting a SR Bonus

{ 2 comments… read them below or add one }

patty September 1, 2012 at 4:36 pm

if i want to extract a losing stake refund bet, do i lay thefirst bet i place with the bookies?

eg. i place £25 with the bookies – do i lay this or not?
if it loses i get refunded – then use this refund to do matched betting?

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admin November 28, 2012 at 11:22 pm

You need to treat your first bet with the bookie as if you were betting with a £25 stake not returned free bet. Placing your first £25 bet at high odds in the bookie then underlaying this bet in the betting exchange.

For example

Bet £25 at odds of 5.00 in the bookmaker

Lay 19.42 at odds of 5.20 in the exchange – Liability £81.56

If you win in the bookie you’ll make £100 profit and lose £81.56 = £18.44 profit

If you win in the exchange you’ll make £18.44 profit (£19.42 lay stake minus 5% commission) and lose nothing in the bookie as your £25 first bet stake is returned = £18.44 profit

Check out the freebets4all automatcher, they have an entire bet type specifically for this type of bookie offer

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