Before I tried matched betting, I was sure it was a scam. I'd seen the adverts and the claims of people making hundreds of pounds in a few days, and it all sounded far too good to be true. Surely making money from bookies' offers had to be illegal, or gambling, or both?

It was only when other UK money bloggers I trusted started sharing their matched betting profits in their online income reports that I decided to try it. Over the next two years I made £5,685.15 in my spare time, all completely legally and tax-free.

I still get asked the same questions, and I still see the same myths. So here are honest answers to the questions people ask most, from someone who's done it.

Want to skip straight to trying it? I used Outplayed for my whole two years, and you can start their 7-day free trial here.

Is matched betting legal in the UK?

Yes. Matched betting is completely legal in the UK, as long as you're 18 or over and legally allowed to place bets.

Even people in the betting industry agree. Graham Sharpe from William Hill told The Telegraph: "There's no illegal element. It's a free bet and you can do what you like." (The Telegraph)

It works thanks to betting exchanges, where you can "lay" a bet, which means betting against an outcome. Covering both outcomes lets you extract a profit from the free bet. If matched betting were illegal, the exchanges that make it possible couldn't openly exist.

What do bookies think of matched betting?

Legal doesn't mean bookies like it. Many offers have terms saying you can't use them purely to make a profit, and bookies employ staff to spot customers "taking too much value". If they think you're only there for the offers, they can restrict your account from future promotions. This is known as being "gubbed".

It's not a crime, and they can't take back profits you've made fairly. I was gubbed by 18 bookies over two years, but never by William Hill, which, according to Wikipedia, has said the industry doesn't have a problem with this use of free bets.

Is matched betting a scam?

No, but I understand why people think it is. Most "make money fast" adverts online are scams, so I avoided matched betting for a long time.

What changed my mind was seeing ordinary bloggers share exactly what they'd made, down to the penny, month after month. They had no reason to lie. Most of them recommended the same company, Profit Accumulator (now called Outplayed), so I tried it.

My first two offers made me around £45, exactly as promised. I was amazed, and I was hooked.

Does matched betting actually work?

Yes. In my first 40 days I made £753.62, and in my first year £3,319.30, all in my spare time. Some weeks I only spent 30 minutes on it.

But it isn't a get-rich-quick scheme. The sign-up offers are the most generous, and once they're used up you move on to smaller "reload" offers for existing customers. People who treat it like a full-time job and learn the advanced methods can make £1,000 or more a month, but most people I know made a few hundred pounds a month at most once the welcome offers were done.

You can see how much I made matched betting every month for two years, and why I eventually stopped.

The easiest way to find out if it works for you is to try it: start your 7-day free trial with Outplayed and see your first profit before you pay anything.

Is matched betting gambling?

No. This is the most common misconception.

When you gamble, you bet on one outcome and risk losing your money if it doesn't happen. With matched betting, you bet on every outcome, one bet at the bookie and the opposite bet at the exchange, so it doesn't matter who wins. The profit comes from the free bet, not from luck, and the software tells you exactly how much you'll make before you place a single bet.

You don't need to know anything about sports either. I didn't when I started, and I still don't. I rarely even knew which team I was betting on.

Is matched betting a gateway to gambling?

For a very small minority, it could be, in the same way that a pub could be for someone with a drinking problem, or a store card for someone with a shopping addiction.

I was once told on Twitter that matched betting is a gateway to gambling. It wasn't for me: the chance to gamble was always there, before and during matched betting, and I was never tempted. Now I've stopped, I have no interest in placing a bet.

But if you've ever had a problem with gambling, don't start matched betting. Even though it isn't gambling, you'll be spending a lot of time on bookmaker sites, and that isn't worth the risk.

Is matched betting dirty money?

I don't think so. Most people who bet do so responsibly, as a bit of fun with money they can afford to lose, the same as buying a lottery ticket or a raffle ticket at the school fete.

If you trace any money far enough, you'll find something you don't like. Banks fund all sorts of industries, yet most of us still use them for our mortgages. Lotteries fund countless good causes. Whether matched betting is ethical is a personal decision, but I'm comfortable with it. And if you don't agree with horse racing, for example, you can simply avoid those offers.

Is matched betting risk-free? Can you lose money?

When done properly, the maths guarantees a profit. But matched betting is low-risk, not no-risk, and the risk comes from you.

You can lose money by typing in the wrong stake, misreading an offer's terms, or rushing. I made three mistakes in my first month that cost me around £100, including losing a £200 bonus because I hadn't checked the wagering requirements. I've written them up in my matched betting tips for beginners so you can avoid them.

The other risk is having an account restricted mid-offer, which can mean losing a free bet.

Will matched betting affect your credit score or mortgage?

Opening bookmaker accounts doesn't usually affect your credit score, as the ID checks are typically soft searches. But mortgage lenders do look at your bank statements, and lots of payments to bookies can raise questions. That's why many matched bettors use a separate bank account. I've covered this in detail in does matched betting affect a mortgage application?

Is matched betting tax free?

Yes. In the UK, betting profits count as gambling winnings, not income, so there's no tax to pay and nothing to declare to HMRC. Every penny of my £5,685 was tax-free.

Is matched betting too complicated?

It sounds complicated, and it's hard to explain to someone who hasn't done it. I didn't really understand it at first, even after watching the videos several times.

But you don't need to understand the maths. Matched betting software finds the offers, matches the bets and calculates exactly how much to stake in each place. I just followed the step-by-step guides, and it worked. My first bet took me an hour. After a few weeks, each one took minutes.

The truth about matched betting

• True: it's a proven way to make extra money on the side
• True: all profit is tax-free in the UK
• True: it isn't traditional gambling
• False: you need to know about sports or betting
• False: you need luck
• False: it's illegal
• False: it's a get-rich-quick scheme

Is matched betting for you?

If you want to make extra money from home, have a little spare time, and have no interest in gambling, then yes, it's well worth trying, especially for the sign-up offers.

If you think being on bookmaker sites could tempt you to gamble, then no, it isn't for you.

If you'd like to give it a go, try Outplayed free for 7 days, the same software I used to make £5,685 in my spare time. Just remember it rolls into a paid subscription unless you cancel within the 7 days.

For my profit milestones and more, see my matched betting blog page.

Note: when I used Outplayed, it was called Profit Accumulator.