There are two ways to make any bet – either an event will occur or it won’t. For example, you can predict which horse will win the race or which football team will lift the English Premier League trophy. This is called a “back bet”, where you’re backing an event.
A lay bet is the opposite, where punters bet on an outcome NOT to happen. Below, we tell you more about what is lay betting, how it works, and its advantages and disadvantages.
What is a Lay Bet
Lay betting is when you are betting on a team or horse to lose. Bookmakers calculate probabilities and set the odds accordingly. The bookmaker is essentially betting against the market, hoping the event doesn’t happen. However, now several websites give punters the option to lay a bet. For example, in horse racing, you can pick the horse that you think definitely won’t win the race.
In a football example, imagine a Brentford vs Liverpool match. A traditional bettor might back Liverpool to win at odds of, say, 3/8. If you’re laying a bet, then you’re predicting that Liverpool won’t win. This means either Brentford wins, or the match ends in a draw.
Explore multiple markets in the Premier League, UEFA Champions League, and more. Punters can lay bets on specific outcomes. Bet on Football Now
Lay betting also works in horse racing. From the Grand National to international races, you can find opportunities on 7bet to place your wagers on favourites or outsiders. Bet on Horse Racing Now.
How Does Lay Betting Work?
The mechanism is straightforward. A backer will bet that an event will happen. For example, a backer might bet £10 at odds of 2/1 that a horse will win a race. On the other hand, the layer will bet the opposite. You accept the backer’s £10 bet at the same odds. If the horse wins, you have to pay the backer his winnings. However, if any other horse is the winner, the £10 amount is yours.
Below, we tell you how to calculate the risk for lay betting.
To calculate a lay bet for horse racing, let’s break it down step by step with a practical example. Here’s the formula you’ll need to know:
Key Terms in Lay Betting
Understand this terminology before using this betting:
- Liability: This is the amount you stand to lose if your lay bet fails. To calculate it, multiply the backer’s stake by the odds minus one. For example, laying £10 at odds of 5.0 means your liability is £40.
- Backer: The person betting on the event to happen. Layers offer the odds to backers.
- Odds: The price at which you agree to place a bet. High odds mean the outcome is more likely to happen. Find out how betting odds work.
- Stake: The amount wagered by the backer.
To calculate liability, use this approach:
Liability = Stake × (Odds−1)
Example:
You want to lay a horse named “Thunderbolt” in the Grand Nationals 2025. This means you are betting that Thunderbolt will not win. The fractional odds are 4/1, which makes the decimal odds as 5.0
Your Stake: £20 (this is the backer’s wager).
The liability,
= 20 × (5.0−1)
= 20 × 4
= 80
So, if Thunderbolt wins, £80 liability will be deducted.
Now, let’s calculate your potential profit.
If any other horse wins, you get to keep the backer’s stake, which is £20. So, your profit is £20 (minus any betting exchange commissions).
So, in a nutshell:
- If Thunderbolt loses, your profit is £20.
- If Thunderbolt wins, your loss is £80.
Advantages of Lay Betting
- Better control over risk and returns: For example, if you believe a heavily favoured team is overvalued, use the lay bet.
- Hedging bets: Some bookmakers allow you to bet on more than one outcome. Use that to hedge your bets for more profit.
- More returns: For example, in horse racing, if the favourite horse underperformed in the trials, lay your bet, which covers any other horse to win.
Disadvantages of Lay Betting
- Risky: Your liability is high. Make sure to properly research the game before laying against a team/ horse.
- Complex: You should have a strong understanding of the odds and your liability for every bet that doesn’t go your way. You also need to factor in every team’s/ horse’s performance to assess who will/ will not win.
Imagine laying £20 on a tennis player in the Australian Open 2025 to lose at odds of 6.0. If the player wins, your liability is £100 – a significant loss compared to the backer’s stake of £50. In this case, it would be better to take the backing wager.
Now that lay betting has been explained, make sure to be selective with your bets. Choose only the games where you feel a player, team, horse has been overvalued. This requires extensive research, not just intuition. Moreover, choose a low-stakes game to minimize risk, and hedge your bets wherever available.
Common Questions about Lay Betting
What Does Back and Lay Mean?
Backing and laying are opposite bets. You can either back a horse to win or lay the bet that it won’t be the first one to cross the finish line.
Can I Use Lay Betting for Hedging Purposes?
Yes, lay betting can be used as a hedge. For example, you placed a backer bet on a horse to win at 4.0 odds with a £10 stake. However, the odds for the same horse now drop to 2.0. You can place a lay bet on the same horse at these odds to secure a profit regardless of the outcome.
Betting is only available to participants above 18 years. Please bet responsibly. BeGambleAware.org