Underlay

Underlay in betting refers to a wager where the potential payout does not fully cover the risk or liability, meaning the odds are not in the bettor's favor. This typically happens in arbitrage betting or hedging strategies, where a bettor fails to place enough money on the opposing outcome to secure a guaranteed profit.

For example, if a bettor places:

• €100 on Team A at 2.00 odds
• Then tries to hedge with a bet on Team B at 2.10 odds but only wagers €90 instead of the required amount to break even

This results in an underlay, meaning there is still risk of a loss instead of securing a no-risk profit.

Underlays happen when bettors miscalculate hedge amounts or fail to adjust for odds movement. In contrast, an overlay is when the bettor has more than enough coverage, ensuring a profit.