Is Hedge Betting Illegal? Dispelling the Myth

With sports betting gaining popularity across the US as more states legalize it, an increasing number of people are exploring the ins and outs of placing bets for the first time. As a result, terms like "hedge betting" have entered the conversation, but the concept can sometimes be misunderstood—especially when it comes to its legality.

If you’re new to the world of sports betting, you may be wondering whether “hedging” is legal in the US, and if so is it a smart way to secure profits?

This post will take a quick look at what hedging is, before looking at the legality of hedge betting and how you can use the strategy to guarantee profits.

Contents

1. What is Hedge Betting?
2.  Is Hedging Bets Illegal in the US?
3. Common Misconceptions About Hedging
4. How To Get Started Hedge Betting

1. What Is Hedging a Bet?

In simple terms, hedging is a strategy used to guarantee profit and minimize risk, often in sports betting. Instead of placing a single wager and leaving the outcome to chance, hedging allows you to cover all potential outcomes of the game by placing an additional bet or bets.

There are a number of hedging methods, including classic hedge betting, arbitrage betting and matched betting. While similar in some ways these methods carry subtle differences, so it’s a good idea to find the best hedging method for your profit-making journey.

2. Is Hedging Bets Illegal in the US?

Sports betting has grown in popularity since 2018 when the Supreme Court overturned a long-standing federal ban. Those regulation changes mean that in states where sports betting is legal, hedging is completely legal as well.

As long as you meet the criteria for having a sportsbook account, such as being over the legal betting age in your state and physically located in a state where sports betting is legal, you can hedge a wager.

Hedging is a betting strategy, not a separate form of gambling. This is why in states where sports betting is legal, hedging a bet is 100% legal as well.

The concept itself has been around for centuries and is also seen in the financial sector in stock trading. Similarly to its use in sports betting, while hedge funds operate across various financial markets, hedge betting remains restricted in some US states due to differing legal frameworks.

Note: Sports betting laws vary by state, so always check for compliance to ensure you are following the rules for your location.

3. Common Misconceptions About Hedging

There are some other common misconceptions around hedging similar to the question “is hedge betting illegal?”. However, now we know that hedge betting is 100% legal in states where sports betting has been legalized, it’s time to dispel some other hedging myths.

1. Hedging is a loophole

Not true. Hedging is a legitimate strategy used in finance, as well as sports betting, to minimize loss and help to lock in profit.

2. Hedging is only for experts

Many people believe hedge betting is only for professional bettors. However, as long as you understand the basic concept and have a reputable platform to help you along the way (see next section), anyone can hedge a bet.

3. You need a large bankroll

While a bigger bankroll can offer more flexibility, those with smaller cash pots can also hedge their bets to lock in profits or minimize losses with careful planning. You don’t have to have a large amount of money to be successful.

4. Hedge betting is complicated

Like anything, hedging can sound a bit confusing at first (how do you know which bets to hedge?!) BUT in reality, it can be pretty straightforward.

The key is understanding what sportsbook odds mean, when and how to hedge and then calculating whether the potential payout justifies the reduced risk…Or just signing up to a killer platform that does the hard work for you!

These misconceptions can cause people to avoid hedge betting. But they’re missing out on its benefits. Don’t let myths like the ones above make you miss out on added potential profits.

4. How To Get Started Hedge Betting

As well as being a completely legal strategy in states where sports betting is allowed, hedging can be a practical way to guarantee profits or limit losses, regardless of your previous experience.

If you're ready to start earning guaranteed cash through hedge betting, the simplest and most effective way to do so is with matched betting. By taking advantage of sportsbook promotions, you can systematically secure monthly profits in the $1,000s, risk-free.

At ProfitDuel, we make it easy for you to get started. Our platform is designed to help you navigate the world of matched betting with ease, providing you with the tools and support needed to turn promotions into real money. Join our members who are already earning thousands of dollars each month.

Sign up today with our special new member offer of just $49.50 for your first month of ProfitDuel Premium, and begin your journey toward guaranteed profits.