The Labouchere Betting System: A Comprehensive Guide

The Labouchere betting system is one of the more complicated betting systems out there, but it is surprisingly popular. It is otherwise known as the Split Martingale system or the Cancellation system.

For many, using a betting system adds structure to their gambling and it can be satisfying when a strategy plays out exactly the way you’ve planned.

Unfortunately, as with all gambling, nothing is guaranteed, so although a betting system can help provide a game plan, it can’t promise a win.

There are merits to Labouchere betting though, namely that you only need to win 1/3 of your bets to return a profit. So let’s delve into the Labouchere betting system in more depth, and look at a few examples of it in practice.

What Is The Labouchere Betting System?

Most betting systems focus around increasing and decreasing your bet size depending on the outcome of the previous bet and the Labouchere betting system is no different.

Other well-known betting strategies such as Martingale, Paroli and D’Alembert gambling systems are quite straightforward in terms of setting a basic bet level and either increasing by a single unit or doubling up.

However, the Labouchere system is a little more complicated as it involves creating a specific profit target and setting a sequence of pre-determined numbers that you need to bet in order to reach the target.

The traditional method is to create a sequence of 10 numbers that add together to create your profit target.

However, 10 numbers can make it very difficult and time consuming to finish a sequence. So, you can choose to set a smaller sequence of numbers if you prefer, especially when you’re starting out.

The important thing to remember when setting out your sequence is your overall bankroll, the longer the sequence and the higher in value they are, the more money you will need to complete a sequence so the advice is to start small.

As a brief example, here are a few sequences you could use with a profit target at the end.

£2 +£4 +£6 + £8 = £20

£1 + £2 + £3 + £4 + £5 + £6 = £21

£5 + £5 + £5 + £5 + £5 + £5 + £5 + £5 + £5 + £5 = £50

£2+ £4 + £6 + £8 + £10 + £12 + £14 + £16 + £18 + £20 + £110

The Labouchere system involves you betting the first and last numbers in the sequence, and if you win, you cancel those numbers off and move to the next first and last numbers. When you are left with one single number you bet that.

Alternatively, if you lose, you add the value of the last bet to the end of the sequence and go again. You continue to play in this way until you run out of money or you complete the sequence. If you complete the sequence then you should have hit your profit target.

We’ll go through this in more detail below, to show you the system in action.

Where Did The Labouchere Strategy Originate?

The system takes the name of Henry Du Pre Labouchere who was a British politician, journalist and theatre owner in the 1800’s.

Labouchere was generally a liberalist who campaigned against war and animal cruelty however he was also a controversial political figure. In 1885, he introduced the Labouchere Amendment bill which criminalised all sexual activity between men. It was this bill that led to Oscar’s Wilde’s prosecution and imprisonment ten years later.

As a keen gambler, Labouchere loved roulette and used a system that he believed worked almost every time. While many attribute the system to Labouchere, it was revealed in a biography written by his grandson in 1914, that he actually stumbled across the formula in a letter composed by French Mathematician Marie Jean Antoine Nicolas de Caritat, Marquis of Condorcet.

So while Condorcet was the brains behind the system, it is Labouchere that has been given the naming honour.

Where Can the Labouchere System Be Used?

The Labouchere system should only be used on bets with even odds, or at least as close as you can get to it. To implement it, you need to look for bets that have close to a 50/50 chance of winning that pay out 1:1.

When Labouchere used it, it was on Roulette outside bets such as red/black, odd/even and high/low. However, it can also be used on other casino games such as Baccarat, when betting on the banker, Craps when betting on Pass/Do not Pass line and even on Blackjack because of the low house edge.

Sports betting is also an option for using the Labouchere betting system, however you have to be very careful when choosing the right bets. Sports markets such only be considered if they offer almost a 50/50 chance of winning.

Remember, that because of house edge, bets are never going to be completely 50/50. Even on a single zero roulette table, red or black only give a 48.65% chance of winning due to the green 0 on the wheel. But it is close enough when it comes to using Labouchere betting.

How To Play The Labouchere System

So, now let’s look at the Labouchere System from a practical point of view, broken down bet by bet.

For this example, let us look at a short, simple sequence with values running from 1 – 6 and a profit target of £21 and let’s assume we are betting on roulette red or black.

£1 + £2 + £3 + £4 + £5 + £6 = £21

Bet 1 would be £7 which is the first value (£1) and the last value (£6) added together.

£1 + £2 + £3 + £4 + £5 + £6

If bet 1 wins, we cancel out £1 and £6 from the list and move to our next bet which would also be £7 which is the new first number (£2) and the new last number (£5) added together.

£1 + £2 + £3 + £4 + £5 + £6

If this also wins then we cancel out £2 and £5 from the list and place our third bet of £7 which is £3 and £4 added together.

£1 + £2 + £3 + £4 + £5 + £6

If that final bet also wins, then we have completed the sequence and won our profit target of £21 (£7 + £7 + £7).

If, however, bet 1 loses, we add the bet 1 total (£7) to the end of the list and then our next bet would be £8 as this is the new sum of the first number (£1) and the last number (£7).

£1 + £2 + £3 + £4 + £5 + £6 +£7

If this bet was also lost, we would add the bet 2 total (£8) to the end of the list and our next bet would be £9 which is the sum of the first number (£1) and the last number (£8) added together.

£1 + £2 + £3 + £4 + £5 + £6 +£7+ £8

Obviously, losses will make the sequence go on longer and make the system more complicated and convoluted. But, of course, this is gambling, and losses will happen.

So let’s now look at a few different scenarios for the example above.

Scenario 1 – you complete the sequence with more wins than losses (5:4)

In the scenario above it would take you 9 bets to complete the sequence and you would finish with your original target of £21.

At your lowest point you would be £26 down, and betting another £13 to continue the sequence, meaning your overall bankroll in this scenario would have to be at least £40.

Unlike the Martingale system, the Labouchere system doesn’t try to recoup losses immediately back in one bet, so you don’t have to jump up to large betting stakes in one go.

However, by taking it more gradually it can take you several bets to get back into profit and if you hit a losing streak, the betting stakes will start adding up.

Scenario 2 – you complete the sequence with fewer wins than losses (7:8)

In this scenario, it would take you 15 bets to complete the sequence and hit your £21 profit target.

In order to do so, though, you would have to place several bets above £20 which may be too risky for some bettors.

At the lowest point, you would be £38 down and placing another £26 bet to continue the sequence so your bankroll would have to be at least £64.

Scenario 3 – you complete the sequence with fewer wins than losses (10:13)

In scenario 3, the sequence would be complete in 23 bets and again you would end with your £21 profit. However, at one point, you would have been £111 down and having to bet a further £60 to keep the sequence going.

That means your bankroll would have to be at least £171 in order to continue playing and there is a strong chance that you would bust out before completing the sequence.

Labouchere Strategy And The Gambling Fallacy

All negative progressive betting strategies, such as the Labouchere Betting System or Cancellation System are based on what we now call the gambling fallacy.

This refers to the belief that in a 50/50 situation, if one outcome has landed, there is more chance that the alternative outcome will land next.

If we look at a coin toss, for example, if we throw the coin and it lands on ‘heads’, then there is a 50/50 chance that the next toss will also land on ‘heads’. This is the same for every toss.

However, the gambling fallacy is when you believe that if the coin has landed three times on ‘heads’, then there is an increased chance of the fourth toss landing on ‘tails’, which simply isn’t true.

This is why negative progressive systems such as Labouchere and the Martingale system require you to increase bets after a loss, as it believes the next bet has more chance of being a win.

This is obviously a flaw in these types of systems and something you should be aware of when following them.

Pros And Cons Of The Labouchere Betting System

The Labouchere has advantages and disadvantages, we’ll take a look at a few of the key ones below.

Pros

Small stakes – you set your own betting sequence so it can be as big or as small as you want

Targeted – setting a specific profit target and then trusting the maths means as long as you can complete a sequence you are guaranteed to make that profit

Loss/Win ratio - you can still hit your profit target even when you have more losses than wins in the sequence

Flexible – Labouchere can be used for all types of even money bets and does provide a structure to follow

Cons

Complicated – it is extremely hard to follow the Labouchere betting system without having to write it down. It’s not something you can easily follow in your head and make quick decisions

Incremental betting stakes – even if you start with a low value sequence, the betting stakes can get extremely high following some losses so you need a high bankroll even for small profit targets

Sequence incomplete – if you can’t complete the sequence then you won’t win the profit and there is no guarantee you can complete the sequence either from a money or time perspective

Bust Out Risk – If you hit a losing streak, there is a high risk you will bust out before completing the sequence.

Tips On Using The Labouchere Betting System

Start small – It is imperative with a complicated system such as Labouchere betting, that you don’t over commit when creating your sequence. Start with low stakes and a small sequence such as 1-2-3-4 until you get the hang of it.

Bankroll management – We have shown in scenario 3 above that even a small profit target of £21 can require a bankroll of at least £170, so ensure you have a large bankroll in order to complete the sequence. Incomplete sequences are what will result in losses.

Practice – use online simulators or online casinos and a pen and paper to practise the Labouchere betting system before you do it in person or with higher stakes. The more you practise, the better you will get at being able to make quick decisions.

Choose your bets wisely – the Labouchere gambling system only works if you stick as close as you can to even money bets. So, whether you're playing roulette, blackjack, baccarat, craps or sports betting, make sure you follow this rule.

Does The Labouchere Betting System Work?

The truth is, if you can complete a full Labouchere betting sequence, then it will provide profits. However, there is a strong chance that you won’t be able to complete the sequence and that’s the big risk. Labouchere betting, therefore, cannot guarantee wins.

There are advantages to using Labouchere over other betting systems though. You can set your sequence, for one, and you can start as little as you want. Plus, if you do manage to complete a sequence, then you will see profits.

Unfortunately though, the system is highly complicated to do on-the-go, and it requires both unlimited time and an unlimited bankroll to ensure you can complete a sequence.

The only guaranteed way to gain an edge over casinos is with value betting. This is a system where players use casino and bookie promotions strategically to gain an advantage, which in turn delivers profits.

Value or Matched Betting can be used in casino play and sports betting and if you want to find out more, check out this guide.

Alternatives To The Labouchere Betting System

There are several betting systems, alongside Labouchere, that are popular with players looking to add structure to their gambling.

Here’s a quick summary of the main ones:

Martingale Strategy – This is easily the most well-known and most-used betting system. It involves setting a basic betting unit, and then whenever you lose, you double the stake for the next bet and when you win, you drop down to the original bet size. The system is flawed in that it is based on the gambling fallacy, however, it is very simple to follow and does mean you can recoup losses quickly. The downsides are that you need a large bankroll and if you hit a losing streak then stake sizes can be eye-wateringly big which can lead to issues with bet limits. (link to article)

Paroli System – This is the exact opposite of Martingale in that you double your stake after a win and drop down to the original stake after a loss. It doesn’t require as big a bankroll as Martingale and it is just as simple. However, it is very conservative, and means you can’t take advantage of a winning steak when it comes as you drop your bet size down after three consecutive wins. (link to article)

D’Alembert system – This is more complicated than Martingale and Paroli, but is less risky too. You set a bet size and then increase your bet by one unit after a loss and decrease it by one unit after a win. It is ultra conservative and keeps losses to a minimum but can be quite long-winded and uninspiring to implement. (link to article)

Fibonacci system – This uses the well-known Fibonacci sequence (1, 1, 2, 3, 5, 8, etc.) as a betting structure. You move up one place and bet that amount after a loss and move two steps back in the sequence after a win. This can suit players who prefer lower and more controlled stakes, but can be difficult to keep on top of when playing in real time.

Reverse Labouchere – This is the opposite of the Labouchere system in that you cross off the outer numbers after a loss and add to the sequence after a win. This is a more conservative approach because your bets reduce when you go on a losing streak rather than increase. However, it can mean that profits don’t grow as quickly as you want.