Sports Betting Guide and Terms - Layoff

Definition

The term layoff in the sports gambling industry is defined as the ‘buyback’ of a specific bet by a sportsbook with another sportsbook. In other words, a sportsbook (or bookie) will reduce its liability by betting the same side with another bookmaker to reduce the amount of risk involved for the prior sportsbook.

Why does this happen?

This occurs because there is too much action on one side. If such a side wins, the sportsbook (or bookie) that is involved will be in trouble and may not be able to payoff the winning bets. Most sportsbooks these days, though, keep an eye on fellow sportsbooks. One way to discourage heavy action on one side is simply to increase vigorish (also known as juice / commission), or move the line. If a bookmaker is not aware of such movements, it might be exposed to heavy action.

Opening lines

Most websites are afraid of the opening line. As such they wait on sportsbooks such as www.betcris.com and www.pinnaclesports.com before they even post their opening lines. Since these books are the first to open (and often even before the land-based sportsbooks), their lines have overnight limits. This simply means that their maximums are capped at a certain point. If there is heavy action on either side of a sports betting line, the line simply moves. After the dust has settled, the other sportsbooks, then, join and post their lines for their members. It would be implied then that this mode of waiting for the dust to settle is a way for the sportsbooks to avoid ‘laying off’ on any bet—although action may still be lopsided on one side.

Lopsided action

Although for the most part, a sportsbook will layoff and reduce its liability by buying the other side of a ‘heavy’ betting side at a competing bookmaker, most sportsbook do not. This is mainly due to the public angle. Since the public is almost always incorrect and consistently looses money betting on sports in general, heavy action on one side may not entirely be too bad. For example, in the National Football League the public loves to bet the favorite. With this in mind, on any given Sunday one may be able to one or two ‘easy’ road favorites. But, bettor beware. Home underdogs are consistently good bets, especially on Monday night games.

Summary

In summary, layoff is a term that describes the ‘buying back’ of a heavily lopsided side bet by betting on the same side with another sportsbook.