What Is Dutch Betting? – Everything You Need To Know About a Gangster’s Creation

Picture the scenario; it is the 12:25 at Turf Paradise, and you’re confident it is effectively a two-horse race between First Point, and I’ll Take the Soup. However, you’re struggling to pick one above the other and are concerned that if you choose First Point, I’ll Take the Soup will win, and vice versa.

Your instinct is to ignore the race and move on, but what if there’s another option? One that enables you to manage your risk and earn a profit? As it happens, there is a betting tool you can use. It’s called the Dutch betting strategy.

This technique will increase your chances of winning, enabling you to grow your bankroll steadily. If less volatility and more profit sound good, read this detailed article about Dutch betting. It investigates the process, provides examples, and outlines the pros and cons.

What Is the Dutch Betting System?

Legend has it that Dutch betting, also known as ‘Dutching,’ was invented by the infamous gangster Arthur Flegenheimer, better known as Dutch Schultz, in the 1920s. Schultz was renowned for earning money from the numbers racket and bootlegging, and was extremely adept at mathematics. This shouldn’t come as a surprise, since he worked as Al Capone’s accountant!

Schultz developed a betting tactic to gain an edge over bookmakers when wagering on horse races. It involves wagering on two or more outcomes in a betting market, and the technique is known as ‘Dutch’ betting in honor of its apparent inventor.

There is no Dutch betting ‘formula’ per se. The idea is to split your stake and reduce your risk. Even though the profit margin per event becomes smaller, the higher strike rate means fewer losing runs and less volatility in your bankroll.

Proper Dutching means splitting your stake so that you earn the same profit no matter the outcome. Suppose you have $20 to wager on the aforementioned Turf Paradise race and want to back both horses. Here is how to Dutch this race:

• Wager $8 on First Point at odds of 3.00
• Wager $12 on I’ll Take the Soup at odds of 2.00

If either bet wins, your return is $24, and you earn a profit of $4.

As you can see, Dutch betting returns are usually relatively small. The above example is the equivalent of staking $20 on a 1.20 favorite. However, when used properly, the process can gradually help you increase your betting account’s balance.

How To Become a Dutch Betting Master – 3 Examples

I will provide three Dutch betting system examples. It is predominantly used in horse racing, so the first two examples will focus on that sport. However, you can use it in other sports where multiple outcomes are possible in a single event; for instance, any market involving selecting a golf or tennis tournament winner.

The easiest way to Dutch involves using a betting exchange such as Betfair, because the mathematics are completed for you. However, you can also use a crypto sportsbook and a Dutching calculator to complete the task.

Example 1

The first example shows you how to Dutch on the Betfair exchange. It is a UK horse race at Southwell, and you’re convinced that only three horses can win in the seven-runner field.

Press the blue boxes associated with the three horses at the top of the betting market. Click on the ‘Stake’ link where the arrow is pointing to on the screenshot above. Next, insert the size of the stake. In this instance, I entered £30 as the total stake. The site automatically ‘Dutches’ for you. You can see that your profit is between £9.66 and £9.69 regardless of which horse wins.

A win provides a profit equivalent to picking a winner at odds of approximately 1.32.

Example 2

However, you can also Dutch on a crypto gambling site. For instance, imagine you have an account with Sportsbet.io and want to place a wager on a horse race. The 5:30 at Wolverhampton looks likely to be a two-horse race, and you’re unsure whether Glittering Lights, the favorite, or Renesmee, the likeliest challenger, will win.

Therefore, you decide to Dutch, but aren’t sure how much to place on each horse to ensure you earn the same profit if successful. Fortunately, there are plenty of easy-to-use Dutching calculators online. Since you want to bet $50, here is how you should split your stake:

• Bet $31.31 on Glittering Lights at odds of 1.85 for a return of $57.92
• Bet $18.69 on Renesmee at odds of 3.10 for a return of $57.94

If one of the two favored horses wins, you are guaranteed a profit of $7.92.

Suppose you want a set profit of $20 rather than a set stake. You can adjust your stakes as follows:

• Bet $78.97 on Glittering Lights at odds of 1.85 for a return of $146.10
• Bet $47.13 on Renesmee at odds of 3.10 for a return of $146.10

In this instance, you’re risking $126.10 for a chance to win $146.10, which means a potential $20 profit.

Example 3

The Dutch betting system is extremely popular amongst bettors looking to pick winners of major tournaments. Suppose you believe three golfers have a solid chance of winning the 2023 PGA Championship. 

You open your Stake account and select the following players:

• Jon Rahm @ odds of 12.00
• Matthew Fitzpatrick @ odds of 31.00
• Max Homa @ odds of 51.00

In this instance, you have $200 to play with, so you use the Dutching calculator to set your stakes as follows:

• $123.27 on Rahm for a return of $1,478.04
• $47.72 on Fitzpatrick for a return of $1,439.72
• $29.01 on Homa for a return of $1,479.51

If any of your three selections triumphs, you’re guaranteed a profit of $1,278.04.

Incidentally, Dutching is also the basis of arbitrage betting. The main difference is that with arbitrage betting, you’re guaranteed a win no matter the outcome. With the Dutch betting strategy, you lose if one of the outcomes you didn’t bet on wins.

Bettors typically ‘Dutch’ with the same bookmaker, but if you shop for better odds, you could benefit from a higher profit and potential arbitrage opportunities.

What Are the Pros & Cons of Dutch Betting?

There are plenty of reasons why Dutching is a good idea. However, it isn’t the best option in plenty of scenarios. Let’s look at the plus and minus points of Dutch betting below.

Pros

• Risk Management: Dutching enables you to mitigate your risk somewhat. In a horse race, for example, you might fancy the favorite to win but understand that the next strongest horse has a real chance. Dutch betting gives you a safety blanket in case your fears about the second favorite are realized.
• Reduce Losing Streaks: Dutching increases your chances of winning a bet. Therefore, you’re less likely to suffer long losing runs that may shake your confidence.
• Better Bankroll Growth: With a higher strike rate and shorter losing runs, you can see your bankroll grow steadily with fewer downturns. The Dutch betting strategy also enables you to use compounding to speed up your bankroll’s growth.
• Make the Most of Your Knowledge: This form of betting enables you to use your knowledge of a sport to narrow down likely winning options.
• Grab an Edge: Proper Dutching could result in you spotting arbitrage betting opportunities. It may also enable you to take advantage of free bets or special offers.

Cons

• Restrictions: As is the case with any form of betting, you could have your account restricted if you continually win. This is especially true if the bookmaker believes you are placing value bets.
• Complexity: You need a decent grasp of mathematics to determine whether the Dutch bet is good value. In example 1, for instance, the odds of 1.32 mean an implied probability of 75.76%. You should not place this bet if you believe the chances of it winning are less than 75.76%. You also need to calculate the stakes manually or use a Dutch betting calculator unless you have an account with a betting exchange.
• There is Still Risk: Barring instances where you find an arbitrage opportunity, you lose your entire stake if none of your selections win.
• Odds Changes Can Ruin Your Wager: If you Dutch using different bookmakers, the odds can suddenly change, leading to lower returns. Suppose the odds on Glittering Lights in example 2 changed to 1.80 while the price for Renesmee dropped to 3.00 as you placed the wagers. Suddenly, your potential returns are lower, and you no longer get the same profit regardless of which horse wins.
• Rule Differences Between Bookmakers: This issue can severely hurt your bankroll. The rules for certain sports can vary from one bookmaker to the next. Suppose one bookie’s terms and conditions state that in a tennis match, retirements or disqualifications mean all bets are void. However, another bookie says the player who qualifies via such a scenario is the ‘winner.’ Therefore, if you use two different bookies to Dutch a game, and one player retires, bookmaker A may void the bet. Meanwhile, bookmaker B could settle your wager as a loss if the player you backed is the retiree!

Can You Make Money From Dutch Betting on Sports?

The supposed inventor of the Dutch Betting strategy met a violent end in October 1935, as was often the case with gangsters of the era. Although he was engaged in many criminal activities, Dutch betting is a legitimate technique and could reduce risk in any betting market. It involves placing two or more bets on the same market to increase your chances of winning.

The Dutch betting system is imperfect because it requires a reasonable grasp of mathematics, and you can still lose your entire stake.

However, once you find the right event, you can use your expertise to back the likeliest winners. While the returns from Dutching are far lower than when you back a single outcome, it is a great way to increase your bankroll gradually. It could lead to a high win rate and fewer frustrating losing runs.