The Ultimate Guide to Hedging Bets in Sports Betting
An indisputable fact is that sports betting is inherently risky and volatile. No matter how much research punters put into their predictions, there’s always the chance of being wrong. This is why sharp bettors always employ various strategies to gain an edge over bookmakers.
One such popular strategy that has proven effective in reducing the risk of sports betting is hedging bets. Experienced punters use hedging to lock in profits or minimize losses by placing additional strategic bets as insurance against their original wager.
This blog explores everything you need to know about hedging betting. But before we dive right in, you can click here to bet on your favorite sports matches and events.
What is Hedging in Sports Bets?
Hedging is a popular strategy in sports betting that punters use to mitigate the risk of wagering by placing bets on different outcomes of the same events. The basic idea is to hedge (i.e. offset) an initial wager by placing an additional bet on an opposing outcome in order to guarantee a profit no matter the results.
The practice of hedge betting has been around for quite some time but has become increasingly popular in recent years, primarily due to the emergence of live in-play betting. As you may already know, betting odds are never fixed and are always moving (i.e. reducing and increasing) during live games.
These movements of odds on outcomes of sports events help create scenarios where a punter can hedge an original bet to win, regardless of the final result. However, you should note that hedging your bets doesn’t always guarantee winning. Many experienced punters also hedge their bets to minimize potential losses should their original wagers not pan out.
The best part about hedge betting is that the strategy is applicable across various sports and betting markets as long as you can cover all possible outcomes.
Practical Example of Bet Hedging
Now, let’s see hedging in action through a practical example.
Let’s say you decided to place a $100 wager on the Golden State Warriors to win in an NBA matchup against the Los Angeles Lakers at +180 odds. As the game progressed, the Warriors managed to take the lead, and the Lakers’s odds moved from -220 at the start of the game to 100.
If you find that you are not confident that the Warriors will take the lead to victory, you can hedge your bet and place an extra $140 wager on the Lakers to win. Now, here’s the potential outcomes that can happen:
| Potential Outcomes | Payout Profit | Loss | Final Profit |
| Outcome 1 – Warriors win | $180
|
$140 hedge bet
|
$40 |
| Outcome 2 – Lakers wins | $140 | $100 initial wager | $40 |
From the scenario here, the punter gets a payout and will even make a profit of $40, no matter who wins.
Pros and Cons of Hedging Bets
As you can imagine, there are many benefits to hedging your wagers, which is why this strategy is a go-to choice for casual and experienced bettors alike. However, it also has its downsides. We’ve highlighted some of the top pros and cons of hedging betting in the table below.
| Pros | Cons |
| Reduces gambling risks | Potential profit is reduced |
| Minimizes larger losses | Can sometimes require a big bankroll |
| Guarantees profit in certain situations | Poor hedging can result in more losses |
| Applicable to many sports and markets |
Is Bet Hedging Legal?
Now, you may be wondering if bet hedging is legal. Absolutely. It’s totally legal to hedge your bets to minimize the inherent risk of sports betting. However, as you can imagine, sports betting sites are not the biggest fan of this brilliant strategy. After all, when done right, hedging betting gives you a major edge over bookmakers.
Unfortunately, bookmakers hold the right to suspend or ban any punter account that they find suspicious of engaging in what they deem as “unfair gambling practices.” So, it’s advisable to avoid placing hedge bets on the sportsbook where you initially put the original wagers. Instead, you should place your original wager on one site and hedge the bet on another. You can also consider using betting exchanges for hedging purposes.
Alternative Risk Reducing Hedging Strategy
Besides the classic hedging explained in this article, the sports betting scene is filled with several other strategies punters use to mitigate the inherent risk involved. Some of these hedging alternatives include:
- Arbitrage Betting: Arbitrage betting is another hedging-like strategy that takes advantage of odd discrepancies across various sportsbooks. It involves betting on all possible outcomes in a sports match to guarantee profit by finding opportunities through the differing odds offered by sportsbooks.
- Matched Betting: Matched betting is an alternative form of hedging that allows punters to cover all potential outcomes of a bet to guarantee profits by taking advantage of bonuses and promotions.
Closing Thoughts
Bet hedging is a proven strategy punters can use to reduce risks while potentially guaranteeing profits. It involves placing an opposing bet on an initial wager to lock in a profit or minimize losses by analyzing favourable odds movement. In essence, it acts as an insurance policy in the sports betting scene.
However, you should note that it’s not always a foolproof strategy, as it can also fail. So, make sure also to practice responsible betting even as you hedge your bets.