In sports betting, bookmakers aim to make a profit by ensuring they do not lose too much money on one side of a bet. If a large amount of money is wagered on one team, the bookmaker may use a layoff to place a bet with another bookmaker to reduce their potential losses. This helps maintain balanced books and minimizes the risk of losing significant money on heavily one-sided betting action.
Layoff Example
For example, if a bookmaker receives a lot of bets on Team A to win, they may place a layoff bet on Team B with another bookmaker to offset some of the potential losses if Team A wins.