Bookmaker Funds Protection
What Is It?
Matched Betting, on the whole, is generally risk free. You place a back bet, you lay the same bet. You cannot lose, right?
Whilst that is the case, there are of course some risks involved such as human error. One of these risks, that may have never even crossed your mind, can be extremely costly indeed!
Bookmaker Funds Protection.
What is it? To put it simply - if a bookmaker goes bust or ends up not being able to pay out for whatever reason, your funds might be protected. Bookmakers do go bust, and when they do, it isn't always a happy ending for Matched Bettors such as you and I!
The punter tends to be at the bottom of the food chain when it comes to who gets paid out first. If a bookmaker goes bust and has no protection on their funds, they'll usually use any funds to pay their staff, and other creditors before then paying out people's account balances.
What does this mean for you though? It basically means that if you have any money in that particular bookmaker, don't expect to see it all. Infact, you might not expect to see any of it!
So How/When Are You Protected?
Bookmakers do offer some levels of protection and, thanks to the Gambling Commission, they are obliged to state these on their sites. Rather than going through each site yourself, we've made a nice table below that you can use as a reference.
The three types of protection are:
3) Basic (sometimes referred to as "no protection")
This is the best of the three, and if you see a bookmaker with this level of protection then you can Matched Bet knowing that if the website goes bust, your funds will be safe. They hold every penny in account(s) that are controlled by an independent person or auditor. If they do end up becoming insolvent, you'll have no issues receiving your funds.
This is also a very good level of protection. Money is also kept in a separate account and there is generally some form of insurance/plan set up should the website go bust. However, there is no guarantee that you'll receive all of your money. However, for websites in this list, you should pretty much be safe to use.
Now, I don't want to concern anyone with this one as websites closing and not paying out is of course rare. However, having large bankrolls in sites in this list is a bad idea. If the website goes bust, your money is not protected. So, there is a chance that you could lose everything and there's nothing you can do about it. With this being said... a website closing does not necessarily mean they've gone bankrupt and cannot pay out. Sites decide to close for various reasons, and the majority pay out with absolutely no issue. However, it's worth knowing that there is a risk, and that for some of the lesser known sites, you should perhaps not keep large amounts of money in them. You know, just incase.
Below is a table showing each of the main bookmakers and which category they all in to.
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