Beginner's Guide to Sports Gambling: Hedging Bets

When should bettors hedge their bets and is it a beneficial wagering strategy

Kaitlin O'Toole | May 29, 2020

First off, you need to know what hedge betting is: it is placing a wager on the opposite side of an existing bet. So what's the value of hedge betting? Well, that differs from player to player but there are a few reasons why you would want to hedge your bet. Players place hedge bets to reduce original risk, setup guaranteed returns, or to create an opportunity to cash in on both sides of a betting option.

Here's an example of reducing your original risk: if you placed $125 bet on an NHL game and then you find out that the star goalie is out sick, you may want to consider placing a $100 wager on the plus one twenty-five (+125) underdog odds to create a break-even scenario on those two bets.

One of the most common hedge betting scenarios involves championship future tickets. Super Bowl LIV provides a classic example.
Prior to the 2019 season, San Francisco was a plus four-thousand (+4,000) Moneyline longshot to win. Bettors who wagered $100 had a chance to earn a four thousand dollar profit if the 49ers won. If Kansas City won, no matter the final score, the net result was just a hundred dollar loss.

When hedge betting, you can also go for a guaranteed return. For example, you could place a wager on Detroit with minus one and a half (-1.5) Odds at DraftKings. When Chicago plus two and a half (+2.5) odds appear on Fanduel, you hedge with a bet on the Bears. So if the Lions win by exactly two points, both tickets cash. Is it risky? Yes.

Hedge betting is just another option to make some cash. You can let wagers ride and take your chances, or hedge, and make guaranteed money. Either way, Sports Illustrated Gambling 101 is here to help you, and we'll see you next time here on a SI.com

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Published May 29, 2020

KAITLIN O'TOOLE