Have you ever wondered how sportsbooks really work, or why they seem to always have the edge? Most people think betting is just luck, but behind every match, race, or game is a carefully calculated system designed to make the house win. The good news is, if you understand how this system works, you can use it to your advantage. Let’s uncover how sportsbooks actually work, how they make their profits, and how you can use matched betting to flip the odds in your favor.

What is a Sportsbook?

A sportsbook is a company that sets odds on sports and other events and accepts bets from players. Betting has a long history. People have been wagering on sports for centuries, starting with horse racing bets in 18th-century England and spreading across Europe and beyond.

Until a few decades ago, most betting happened in physical shops. The rise of the internet changed everything. Online betting had already been growing steadily, but the pandemic gave it an extra push. Today, most bets are placed on a device (computer, phone, tablet), making it easier than ever to compare odds, spot opportunities, and use clever strategies like matched betting.

How Sportsbooks Calculate Odds and Make Profit

Behind every set of odds, there’s a simple business rule: the sportsbook must stay profitable. That’s why the odds you see are never random, but calculated to tip the balance in their favor. Let’s take a look at the following odds of the game Nashville SC vs Inter Miami, where we have:

• Nashville SC to win: +138
• Draw: +220
• Inter Miami to win: +190

Let’s imagine the sportsbook has accepted the following bets:

Total stakes collected: $34,500
Highest payout: $33,320

As you can see, the sportsbook has already accepted bets that always lead to profit no matter who wins. If they notice that too much money is being placed on a particular outcome, they can adjust the odds to encourage more bets on the other results.

So where did this profit come from?

The profit comes from the sportsbook’s margin. Even if you, as a player, placed bets on all three outcomes, hoping to break even, you’d still lose money in the end. That’s because of the hidden profit built into these odds.

Let’s break this down further and see what happens if you bet on every outcome. Suppose you bet $100 on Nashville SC.

To make the potential payouts equal (around $238 for each outcome), you’d need to bet roughly:

• $100 on Nashville SC at +138
• $74 on Draw at +220
• $82 on Inter Miami at +190

Your total stake is $256.

Depending on who wins, we have:

• If Nashville SC wins → you get $238 (lose $18)
• If it’s a Draw → you get $237 (lose $19)
• If Inter Miami wins → you get $238 (lose $18)

No matter what happens, you lose about $18–$19.

That small gap is the sportsbook’s margin, the built-in profit that ensures they always come out ahead. When you bet on one result, for example Nashville SC to win, others will inevitably bet on the alternative outcomes.

Over thousands of bets, that margin adds up, guaranteeing steady earnings for the sportsbook and steady losses for the average player.

Is a Sportsbook and a Betting Exchange the Same Thing?

Not exactly. Both sportsbooks and betting exchanges let you place bets on outcomes to happen, such as Nashville SC winning their next match.

The main difference is how the bets are matched. On a betting exchange, you’re betting against other players rather than against a company, and the platform only takes a small commission on winnings. This usually results in significantly better odds compared to a traditional sportsbook, allowing you to cover multiple outcomes at a lower cost.

As we saw in our example, betting $256 on all three outcomes still resulted in a loss of $18–19. 

And what if you could place opposing bets without losing money?

Before we get to that, let’s see how sportsbooks attract people to bet with them.

Sportsbook Promotions: How They Attract Players

Sportsbooks are always looking for ways to attract new customers and keep existing ones engaged. They invest heavily in sponsorships, partnering with leagues, teams, and sports organizations to increase their visibility and build trust among fans. From the Premier League to local football clubs, you will often see sportsbook logos prominently displayed, reminding audiences of their platforms. Famous football players frequently partner with sportsbooks to boost their credibility.

Beyond sponsorships, sportsbooks also use a variety of promotions to capture attention. These can include welcome bonuses for new users, free bets, cash-back offers, enhanced odds, and loyalty programs. Promotions are designed to make betting more attractive and competitive, often presenting big numbers that sound too good to be true. 

However, these offers always come with terms and conditions that make them less straightforward than they first appear. Learning how these offers are structured can reveal opportunities that are not obvious to most players.

Turning Sportsbook Promotions to Your Advantage

Matched betting is a way to turn the sportsbooks’ math against them. It is a proven, mathematically sound method that lets you use their promotions in a controlled and clever way. In essence, matched betting means placing opposing bets with a sportsbook and a betting exchange to unlock a bonus or free bet and turn it into real, withdrawable money.

It might sound complicated, but with the right tools, anyone can do it. Many beginners find it surprisingly simple and even enjoyable, and for some it becomes a side hustle that fits around daily life.

There are several types of sportsbook offers you might encounter:

• Bet X, Get Y – place a qualifying bet and receive a free bet or bonus in return.
• Refunds on losing bets – get your stake back if your bet loses, either in cash or as a free bet.
• Enhanced odds – temporarily boosted odds on certain events or markets.

Each offer works a little differently and comes with its own terms and conditions. Understanding the variety of promotions available is the first step to making the most of them.

Matched Betting in Action: Bet X, Get Y

Let’s see matched betting in practice with a real example. Imagine Nashville SC is playing Inter Miami, and FanDuel offers a promotion: Bet $10, Get a $10 Free Bet.

Step 1: Qualifying Bet

To unlock the free bet, you need to place a qualifying bet of $10. You find that the best market is Over 2.5 goals. You place $10 on FanDuel and the corresponding amount to cover that bet on ProphetX betting exchange. After balancing the stakes, you end up with a small loss of $0.75 on this first bet. This is normal and part of the process to access the free bet.

Step 2: Using the Free Bet

Next, you use the $10 free bet on another game. With the Dutcher, you find that the best game is the upcoming match between Vancouver Whitecaps and FC Dallas. You place the free bet on Over 4.5 goals and place the corresponding amount on Under 4.5 goals with ProphetX.

Whatever happens in the game, you generate a profit of $7.30.

Step 3: Total Result

After accounting for the initial $0.75 loss on the qualifying bet, your total profit from this offer comes to $6.55.

This simple example shows how matched betting turns sportsbook promotions into real opportunities. The profit is not determined by which team wins, because on both steps you covered all possible outcomes.

Which Sportsbooks Give the Largest Bonus Offers?

Finding the biggest bonuses isn’t always straightforward. Sportsbooks run welcome deals, ongoing promotions, and special event offers, but each comes with its own rules, betting requirements, and restrictions. That means an eye-catching “$250 free bet” might not actually be worth as much as it seems.

That’s where NinjaBet kicks in. Step-by-step tutorials guide you through each offer, while our tools help you quickly compare odds and calculate stakes, taking the guesswork out of matched betting.

The welcome bonus profits section shows all current welcome offers along with the actual earnings you could expect, helping you understand the value you can take from these promos. Be sure to follow our Telegram channel to get updates whenever new recurring promotions become available.

FAQ – Quick Answers to Common Questions

Q: Which sportsbook gives the best odds?

There isn’t a single sportsbook that always offers the best odds. It’s not just about which site has higher odds for Team A to win. You also need to consider the opposing odds. Sometimes less popular games can have much better odds. 

Remember that different sportsbooks will be better for different matches and markets, which is why tools like the Dutcher are so useful along the matched betting journey.

Q: Can I make a calculated profit from every sportsbook promo that I get?

Not all promotions are equally profitable. Terms, betting requirements, and restrictions can reduce their value. For every welcome and recurring offer on our site, we provide an estimated profit so you know what to expect.

Additionally, if you are a Premium user and receive an exclusive offer but aren’t sure how to handle it, you can share it with us and we’ll provide guidance on how to complete it.

Q: What is the difference between a sportsbook and a betting exchange?

A sportsbook sets the odds and takes bets directly from customers, adding a margin to ensure profit. A betting exchange lets users bet against each other, generally offering lower costs through smaller commissions.

Q: Do I need a lot of money to start matched betting?

No. You can start with a small amount and gradually build up your funds over time. The key is applying the right strategy for each offer, knowing which ones are worth your time, how to balance bets efficiently, and how to turn it into a manageable side-hustle without spending hours on calculations.

Q: Can my account be blocked if I use too many bonuses?

Yes, it’s possible. Sportsbooks track accounts that consistently take advantage of promotions, and if they suspect someone is exploiting bonuses too much, they may limit bets, reduce stakes, or in some cases close the account, a process often referred to as “gubbing.”

Of course, there is much you can do to stay on the safe side. Find out more in our article 12 Secrets to Avoid Gubbing.

To Wrap It Up

Sportsbooks are clever, constantly designing promotions, adjusting odds, and finding ways to keep players engaged. Understanding how they operate gives you the upper hand and helps you make smarter decisions when betting.

Matched betting applies a structured, math-based approach to sportsbook promotions. By following systematic steps and using tools to compare odds and calculate stakes, you can learn to take value from promotions and, in effect, use the sportsbooks’ own rules to your advantage.

Wondering how to do this with just a few hours a week? Click the button below, start your FREE account and see for yourself how it works.