Dutch Betting

On this page, we’ll discuss how the Dutch betting strategy works and offer tips and tricks for using the system effectively. We’ll also highlight the benefits and drawbacks of Dutch betting, explain common misconceptions, and overview tools and software that may help you gamble more successfully.

What is Dutch Betting?

Dutch betting, or “dutching,” is a gambling strategy that involves placing bets on multiple outcomes within the same event, potentially securing a profit regardless of the result. The system aims to distribute risk effectively based on implied probabilities so profits from a winning wager will offset losses.

For example, imagine a horse race with three strong contenders, and you believe one of them will win. Instead of betting on just one horse, you use dutching to spread your stake across all three based on their odds. If Horse A has odds of +200, Horse B has odds of +350, and Horse C has odds of +500, you would calculate the correct stake for each to ensure the same profit regardless of which one wins.

Understanding the Mechanics of Dutch Betting

To successfully practice Dutch betting, you’ll need to be able to do two things: calculate the implied probability of each outcome of the event and calculate the potential profits for each outcome. Doing these two things will tell you how much to wager on each outcome to ensure the profit of a winning result will offset the cost of any losses.

Because you’re betting on multiple outcomes from within the same event, it’s important to know the returns won’t be as high while Dutch betting as they would be from successfully backing a single line. However, you’ve also increased your chances of correctly picking the winning result, increasing your chances of a profit overall.

Mathematically, the formula for Dutch betting tells us profitability can be calculated by determining 1-R, where R is equal to the sum of reciprocals. Bookmakers will work to ensure R has a value greater than 1 to ensure a profit, while bettors can work to get an R-value close to one to improve their profit potential.

Types of Dutch Betting Strategies

There are several types of Dutch betting strategies you will want to consider, each with its own benefits and drawbacks.

• Simple Dutching: Betting on two outcomes in an event where only one can win. Risk amounts are balanced so that either winning outcome would produce the same profit amount.
• Set-Profit Dutching: Set-Profit Dutching starts by determining the desired profit amount after bets are settled. From there, you can work backward to find the amounts to wager on each outcome to reach that goal.
• Set-Stake Dutching: Unlike Set-Profit Dutching, Set-Stake Dutching puts limits on the amount of money you’re going to risk. Think of it as setting a budget on the amount you’re risking, then betting on two outcomes so that your losses would be negated by a winning result.

Calculating Stakes in Dutch Betting

Let’s take a look at a real-world example for calculating the stakes in Dutch betting. In an NBA game between the Boston Celtics and Cleveland Cavaliers, a sportsbook listed the odds of both teams scoring a basket in the first minute as “Yes +140, No -235,” or in decimal form, “Yes 2.4, No 1.426.”

The sum of our reciprocals is equal to:

R = (1/2.4) + (1/1.426) = (0.416) + (0.701) = 1.117

Thus:

1-R = 1 – 1.117 = -0.117

Because 1-R results in a negative number, we can see this outcome won’t result in profitability by backing both sides. 

However, let’s say a second sportsbook has the odds for “Yes” both teams score in the first minute at +275 instead of +140 (in decimal form, 3.75 instead of 2.4). By backing “No” at Sportsbook A and “Yes” at Sportsbook B, our formula now becomes:

R = (1/3.75) + (1/1.426) = (0.266) + (0.701) = 0.967

Thus:

1-R = 1 – 0.967 = 0.033

Since 1-R is >0, you can back both sides to guarantee a profit. 

“But how much will I need to wager on each line to offset the losses?” you might be asking. The amount is somewhat up to you, as there will be a range of profitable amounts to bet on either side with upper and lower limits. 

Since “No” is the favorite outcome in either scenario, you’ll need to risk more on that result than on “Yes,” the underdog outcome. However, the amount you risk on the favorite can’t be more than the maximum return from the underdog result.

Applications of Dutch Betting in Various Sports

Dutch betting is most commonly used as a strategy for sporting events with multiple outcomes such as horse racing, tennis, golf, or in 1X2 wagers in soccer. However, as demonstrated above, it can be used for binary outcome events such as moneyline, totals, and spread wagers in football, basketball, baseball, and hockey.

Whichever sport(s) and markets you’re betting on, you’ll need to determine how much risk is still worth taking on. We discussed earlier why betting on each outcome will hardly ever result in a profit due to handicapping, but by finding an acceptable range of reciprocals to back, you can give yourself an improved chance of profitability. 

Advantages of Dutch Betting

The biggest advantage of Dutch betting is the increased chances of winning. In events with more than two possible outcomes, Dutching allows you to cover a reasonable portion of the field while keeping profits consistent. 

Another benefit of Dutch betting is risk management. When you’ve established a result likelihood in such a way that your wins offset your losses and still leave you with a profit, you can determine the amount of risk that best fits your financial constraints and betting goals. 

Finally, smart Dutch betting will allow you to more comfortably back underdogs by diversifying the risk in tandem with favorite outcomes. If you feel an underdog has a better chance of winning than the implied probability indicates, including the underdog in your Dutching strategy can give you another winning avenue while still keeping a reasonable profit margin.

Risks and Challenges of Dutch Betting

The biggest risk of Dutch betting is backing several outcomes, though not the entire field, and having one of the outcomes you didn’t back emerging victorious, resulting in a total loss of your stakes.

All wagers assume some degree of risk, even if you’ve backed every outcome. This ties into the need for sound bankroll management so you don’t burn through your finances, especially since many of your stakes while Dutching will not yield a return. 

Another point of concern is not having precise calculations, whether on the amount you need to wager on each of the outcomes or in calculating the implied probabilities of each outcome. Failing to appropriately determine either type of figure will result in extra incurred risk, resulting in reduced profit amounts or perhaps across the board losses. 

Bookmakers may also limit the number of wagers you are allowed to make on a given event or change the odds after your first wager is placed to alter your potential return. While Dutch betting is a perfectly legal strategy, some operators may impose limitations on your ability to practice Dutching effectively, including blocking you from using a bonus bet or credit on more than one outcome in the same market. 

For this reason, we always encourage you to shop the odds so you can find the best deals on the lines you’re backing. This will also allow you to improve profitability and cover more outcomes from your desired event(s). 

Tools and Software for Dutch Betting

Many sports betting sites have Dutch betting calculators into which you can put the odds and your budget strategy (by set-profit or set-stake) to determine ideal wager amounts. Bettor In Green is working on including a Dutching calculator into our software as another resource for you to use. 

Another tool to use is an odds comparison tool which shows the optimal odds across several sportsbooks/racebooks. This will help to streamline your research efforts and improve your profitability when deciding which lines to back. 

Tips for Successful Dutch Betting

Before you set out to start placing your wagers, we hope you’ll keep these tips for successful Dutch betting in mind:

• Check your math: Calculator tools are great, but they aren’t foolproof. We recommend double-checking your equations against a calculator; or could also use two different calculators to verify the results before placing your wagers. 
• Watch for odds movement: Staying informed about odds movement is crucial as the numbers will impact your profit margins on each wager. If you’re using outdated odds, your calculations may be wrong by the time you’re planning to place a wager. 
• Use multiple sportsbooks/racebooks: Sportsbooks and racebooks frequently use different odds than their competitors to encourage betting action, and the odds can move based on the number of wagers made, dollar backing on either side, and additional matchup analysis. Take some time to find which bookmakers are offering the most favorable odds for the lines you’re backing to improve your potential profitability and reduce your risk. 

Common Mistakes to Avoid in Dutch Betting

Here are several common mistakes that you’ll want to be sure to avoid when Dutch betting:

• Backing too many outcomes: While increasing the number of outcomes you’re backing also improves your chances of a winning wager, it comes at the cost of a greater financial risk. This can also reduce your profit margins since there are more losing outcomes to cover. Finding balance is key. 
• Betting on multiple sports: Including multiple sporting events into a Dutching strategy is a recipe for disaster. When you introduce multiple events, the entire equation breaks. Limit your Dutch bets to sports you know and have good familiarity with to keep your calculations more precise. 
• Overrelying on favorites: According to the American Quarter Horse Association, horses that enter as the favorite win roughly 40% of the time, with thoroughbred favorites winning 36% of the time. This means that roughly 60% of the time, a lesser-favorite or underdog will take the win. Favorites are favorites for a reason, but continuing to pick them outright can reduce your profits and result in heavier losses.

Comparing Dutch Betting to Other Betting Strategies

Dutch betting is a variation on arbitrage betting, though both have the same objective and often work well together. Arbitrage betting involves shopping the odds and capitalizing on the differences posted by bookmakers while Dutching generally spreads the risk across multiple wagers from the same bookie. 

It also mirrors hedge betting, which is backing the opposite side of your original wager after considerable odds movement, again ensuring a profit regardless of the outcome. 

As a reminder, every betting strategy carries some degree of risk, even those advertised as “risk-free,” and no single strategy is 100% effective. Your bets are entirely YOUR responsibility!

Who Invented Dutch Betting?

The Dutch betting strategy was named after Arthur Flegenheimer, an American mobster who later went by the name “Dutch Schultz.” He implemented the strategy while gambling on horse races in New York, helping to finance his criminal enterprises.

Though Schultz was gunned down in 1935, his betting system of strategically backing multiple entrants in a race to distribute risk and nearly always guarantee a profit is still a popular gambling method used today.

While the strategy was primarily used for horse races, Dutch betting can be applied across many gambling scenarios, including sports betting and certain casino games. The system isn’t perfect, as oddsmakers will handicap the lines to ensure a profit no matter the result, but using this strategy can still help gamblers tip the odds closer to even.

Conclusion

When used correctly, Dutch betting is a reasonable gambling strategy to help manage risk and increase profit likelihood. While it can take some time to calculate the best course of action for your betting slip, the payouts can often be worth the effort. 

Looking for more information about gambling strategies? Check out our online sports betting guides for other tips, methods, and systems to help you improve your skills. 

Good luck, have fun, and always gamble responsibly!!