Lay betting is probably one of the most advantageous features of betting exchanges such as BETDAQ and Betfair. Laying a selection essentially means that the punter is betting on the non-occurrence of a particular event, e.g. a certain horse not winning or a football match not ending in a draw. The punter plays the role of a "traditional" bookmaker in offering a price against the event happening. The betting exchange acts as a broker, matching lay bets with other punters wishing to back the horse to win or the game to finish as a draw.

Many punters find the prospect of "playing the bookmaker" daunting and perhaps frightening, though it can be an enjoyable and profitable experience if approached with appropriate caution. The odds offered will determine the liability associated with a selection, i.e. the amount lost if the selection is actually successful. For example, a £20 lay bet at 3.5 (5/2) has an associated liability of £70 if it wins (£50 plus the original £20 stake). However, if the selection loses, the layer keeps the £20 staked by the other punter. In placing a lay bet, the punter is essentially backing a selection to lose, but the liability associated with that selection winning is of paramount importance. Many novices happily lay big outsiders at huge prices and regularly collect the stakes of the "mug" punters backing them. However, it only takes one of these outsiders to be successful in order for a beginner to realise that lay betting is not a licence to print money as it clears out their winnings in one fell swoop. One lay bet of £10 at odds of 33/1 means a payout of £330 if successful. Beginners to lay betting should set an easily affordable upper limit for the price they are prepared to lay and keep to this limit, regardless of a string of successes or failures. Whilst this is very much a matter of personal preference, setting an upper limit of around 5/2 (3.5 in decimal odds) allows liabilities to be kept in check, with a payout of £35 for every £10 laid at the price.

Placing a Lay Bet
For the sake of simplicity, consider a horse race example. The betting exchange screen lists all the runners with "back" and "lay" prices alongside them. In order to lay a horse to lose, click on the shortest "lay" price available (pink box), which will launch the "Bet Manager" on the right hand side of the screen. If the "lay" price shown is acceptable, placing the bet can be accomplished by entering the stake and clicking on "Confirm." However, if the price shown is considered too high for a lay bet, it is possible to request a shorter lay price by amending the figure in the "Your Odds" box to that considered reasonable. For example, if the current price of 2/1 (3.0 decimal) is considered too high, it is possible to place a lay bet at, say, 7/4 (2.75 decimal). If this is matched before the race starts, the associated liability is £27.50, otherwise the bet is void.


Newcomers to the betting exchanges generally find the concept of lay betting a little confusing. However, with a little practice, preferably keeping potential losses to a minimum, it soon becomes a straightforward process and along with reliable horse racing betting tips, can be a valuable weapon in any punter`s armoury.