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The Labouchere system was invented by the British Aristocrat Henry Labouchere in the 19th century. Henry’s love of roulette led him to develop this intriguing strategy for the game.
Over time, the system has remained popular, and gamblers have branched out from roulette and applied it to other casino games and sports. This guide explains the Labouchere betting system in detail, including its pros and cons, and how to apply it to different forms of gambling.
What is the Labouchere System?
The Labouchere system is categorized as a negative progression system. This means you must increase your stake with every consecutive loss before resetting to your original bet unit when your next bet wins.
Because of this, the Labouchere system, also known as the cancellation system, is focused on recovering previous losses by optimizing the value of individual wins. In this respect, it’s similar to the iconic Martingale system, although it’s more conservative and doesn’t attempt to recover all previous losses in one go.
Nikita JonesCasino & Betting Editor
To create your iteration of the Labouchere system, you’ll first have to create a unique sequence of numbers. One of the best ways to do this is to decide on your profit goal and then split this number into a sequence of smaller numbers that are the sum of your profit goal. For example, if your profit goal is $20, you could have 2,3,3,5,7 (2+3+3+5+7=20).
This sequence can take any form you like but should have at least three numbers. Also, consider how aggressively you want to approach betting. Shorter sequences will result in faster profits or losses, whereas longer sequences are the opposite and are less aggressive. They will take longer to hit your goal but are also more unlikely to go bust.
With every bet, your stake will be the sum of the first and last number in the sequence. If you lose, the amount previously staked will be added to the end of the sequence, causing your next wager to increase incrementally.
The potential profit for each cycle will always equal the total value of your chosen numbers and increase with each successive loss. In instances where your wager is successful, you’ll remove the first and final number in the sequence.
How Does the Labouchere System Work?
Regarding functionality, the Labouchere system is one of the most complex available. However, it becomes easier to understand when you examine practical examples of the Labouchere gambling strategy, especially when starting with a fixed unit bet and a simple numerical sequence. Below, we’ve highlighted a simple step-by-step example of how the betting cycle would work.
- Set your profit goal and break this down into a sequence of at least 3 numbers.
- In this example, our goal is just $5, so our sequence is 1,2,3
- Add the first and last number of the sequence together for your initial stake (3+1 =4)
- Place your first wager of $4.
- If this loses, add 4 to the end of your sequence (1-2-3-4). Then, increase your stake to $5.
- If you lose again, add 5 to the sequence (1-2-3-4-5). Then, increase your stake to $6.
- If the next wager wins, remove the first and last numbers from the sequence (1 and 5).
- Your sequence now reads 2-3-4. So, your next bet will be $6.
- Another win will see you remove 2 and 4, creating a final stake of $3.
- If this also wins, the betting cycle comes to an end.
Throughout this cycle, you’ll have staked $24 across five different bets. You’ll have staked $9 in losing bets and $15 in winning wagers, creating a $6 profit when you’re betting at odds of 1/1 or 2.00.
You can also see how your stake amount increases with every loss and either consolidates or decreases with each win. Just remember, the actual efficacy of the Labouchere system will be heavily impacted by your chosen online gambling vertical and the odds of each wager.
Examples of the Labouchere System in Action
The above example highlights the potential benefits and pitfalls of the Labouchere betting system. Firstly, it’s a conservative negative progression system that doesn’t look to fully recover previous losses. This creates relatively small margins, so the Labouchere system is synonymous with casino games like roulette and even-odds bets.
However, you can also use the Labouchere system at sports betting sites on close to even money bets. For example, you may start with the same initial sequence (1,2,3), but place your original $4 on the Detroit Tigers to defeat the Texas Rangers in the MLB. The odds here are +100, so every $1 you wager successfully will deliver a $1 profit.
If the Tigers win, you’ll earn a $4 profit. Your next bet is $2.00, and you use this to back the Miami Marlins to overcome the San Francisco Giants (at odds of +100). If the Marlins prevail, you’ll bank a $4 win and a $2.00 in profit, ending the cycle. You’ll be left with a $6.00 profit across these two wagers.
In sports betting, it’s not that common to find +100 odds on a game; there’s much more variation in moneyline markets. However, you can always find odds of -110 for markets like over/unders and spreads. Below is a more detailed example of using the Labouchere strategy betting on these types of markets in NFL betting:
| Bet # | Sequence | Bet Amount (Sum of Ends) | Bet Type | Outcome | Updated Sequence | Running Total |
|---|---|---|---|---|---|---|
| 1 | 10-20-30-40-50 | $60 (10+50) | Chiefs -3.5 | Lose (-$60) | 10-20-30-40-50-60 | -$60 |
| 2 | 10-20-30-40-50-60 | $70 (10+60) | Over 47.5 | Win (+$63.64) | 20-30-40-50 | +$3.64 |
| 3 | 20-30-40-50 | $70 (20+50) | Eagles -6.5 | Win (+$63.64) | 30-40 | +$67.28 |
| 4 | 30-40 | $70 (30+40) | Cowboys +2.5 | Lose (-$70) | 30-40-70 | -$2.72 |
| 5 | 30-40-70 | $100 (30+70) | Under 43.5 | Win (+$90.91) | 40 | +$88.19 |
| 6 | 40 | $40 (Final Bet) | 49ers -4.5 | Win (+$36.36) | (Sequence Ends) | +$124.55 |
| 7 | 10-20-30-40-50 | $60 (10+50) | Bengals -3 | Lose (-$60) | 10-20-30-40-50-60 | +$64.55 |
| 8 | 10-20-30-40-50-60 | $70 (10+60) | Over 49.5 | Lose (-$70) | 10-20-30-40-50-60-70 | -$5.45 |
| 9 | 10-20-30-40-50-60-70 | $80 (10+70) | Patriots +7.5 | Win (+$72.73) | 20-30-40-50-60 | +$67.28 |
| 10 | 20-30-40-50-60 | $80 (20+60) | Under 45.5 | Win (+$72.73) | 30-40-50 | +$140.01 |
Labouchere Betting Strategy at a Blackjack Table
In addition to roulette and sports betting, blackjack players also widely use the Labouchere system. Classic blackjack has a published return-to-player (RTP) rate of 99.41%, creating a minimal house edge of just 0.59%. This means your chances of fielding a winning hand are close to 50-50, making the Labouchere system a viable option.
One interesting element is that some blackjack outcomes pay higher than even money returns. For example, a blackjack often pays out at 3:2. However, you can ignore the difference in payout and carry on without altering your number sequence.
Another difference between blackjack and other games is that you may have to increase your stake in a hand if you’re following a basic blackjack strategy (which is advisable as it lowers house edge. For certain hands, you should split or double down, for example, if you start with 11.
This will obviously mess with the Labouchere strategy. However, it has a simple fix: if you lose, simply add the total amount staked to your sequence. If you split and win one hand and lose the other, then repeat the step of the sequence you used in the hand. Here’s a Labouchere system example in blackjack while employing basic blackjack strategy.
| Hand # | Sequence | Bet Amount | Action | Outcome | Updated Sequence | Running Total |
|---|---|---|---|---|---|---|
| 1 | 1-2-3 | $20 (1+3) | Hit | Lose | 1-2-3-4 | -$20 |
| 2 | 1-2-3-4 | $25 (1+4) | Double Down (-$50) | Lose | 1-2-3-4-8 | -$70 |
| 3 | 1-2-3-4-8 | $40 (1+8) | Stand | Win (+$40) | 2-3-4 | -$30 |
| 4 | 2-3-4 | $30 (2+4) | Split ($30×2 = $60) | Lose Both (-$60) | 2-3-4-6-6 | -$90 |
| 5 | 2-3-4-6-6 | $40 (2+6) | Stand | Win (+$40) | 3-4-6 | -$50 |
| 6 | 3-4-6 | $45 (3+6) | Hit | Win (+$45) | 4 | -$5 |
| 7 | 4 | $20 (Final) | Stand | Win (+$20) | (Sequence Ends, restart 1-2-3) | +$15 |
Labouchere Betting Strategy for Roulette
Various bet types are available when playing at a roulette casino. These bets are broadly categorized as ‘Inside’ and ‘Outside’ wagers.
Inside bets are high-risk and high-reward bets. Examples include a straight-up wager on a single number. This boasts odds of 35/1 (when playing the European iteration) and a win probability of just 2.63%.
You cannot use a roulette labouchére system on inside bets effectively, as you will almost always deplete your bankroll before you get a win.
Conversely, outside bets are dominated by even-money wagers such as high-low, red/black, and odd/even. These wagers all payout at 1:1 and boast a 47.37% win probability. When devising a Roulette Labouchere cancellation system, you should stick to these even money bets.
You can also place dozen and column bets on 12 numbers at once, with these paying out at 2:1 and having a 32.43% chance of occurring. Using the system on these bets is possible but much riskier and can deplete your bankroll quickly, so is best avoided.
Labouchere Betting on Baccarat
The question remains whether you can use the Labouchere betting system with other casino games. The short answer is yes, with the relatively niche discipline of baccarat offering a relevant case in point.
Like classic blackjack, casino baccarat boasts quick gameplay and an incredibly competitive RTP rate (98.94% for a banker bet on average and 98.76% for a player wager). This makes a baccarat Labouchere system perfectly viable and can be structured and applied the same way.
Once again, it would be best to consider the precise bets in baccarat. For example, the banker’s bet pays out at a rate of 1:1 and boasts a win probability of 45.86%. The player’s bet offers a payout of 0:95:1 and a win probability of 44.62%, while your potential profit here will be slightly less than your original stake.
Some baccarat iterations also feature the ‘tie bet,’ which pays out at 8:1 and has a win probability of just 9.52%. The house edge here is as high as 14.36%, so you’ll have to balance the potential for higher returns with a much lower likelihood of winning in the first place.
Labouchere Strategy for Craps
You can also utilize a Labouchere cancellation system when betting on craps. However, this is best reserved for specific, even money bet types, such as pass, don’t pass, don’t come, Big 6, and Big 8.
Craps differs slightly from other casino games as you can place more than one bet in each session for example, the Come/Don’t Come bet can only be made after the point has been set on the come-out roll. Here’s how a session might look in craps while implementing the system.
| Round # | Bet # | Sequence | Bet Amount (Sum of Ends) | Bet Type | Outcome | Updated Sequence | Running Total |
|---|---|---|---|---|---|---|---|
| 1 | 1 | 1-2-3-4 | $50 (1+4) | Pass Line | Lose (-$50) | 1-2-3-4-5 | -$50 |
| 2 | 2 | 1-2-3-4-5 | $60 (1+5) | Don’t Pass | Win (+$60) | 2-3-4 | +$10 |
| 3 | 3 | 2-3-4 | $60 (2+4) | Pass Line | Lose (-$60) | 2-3-4-6 | -$50 |
| 4 | 4 | 2-3-4-6 | $80 (2+6) | Don’t Pass | Win (+$80) | 3-4 | +$30 |
| 5 | 5 | 3-4 | $70 (3+4) | Come Bet | Win (+$70) | (Sequence Ends) | +$100 |
| 6 | 6 | 1-2-3-4 | $50 (1+4) | Pass Line | Win (+$50) | 2-3 | +$150 |
| 7 | 7 | 2-3 | $50 (2+3) | Don’t Pass | Lose (-$50) | 2-3-5 | +$100 |
| 8 | 8 | 2-3-5 | $70 (2+5) | Come Bet | Win (+$70) | 3 | +$170 |
| 9 | 9 | 3 | $30 (Final Bet) | Don’t Come | Lose (-$30) | (Sequence Ends) | +$140 |
Nikita JonesCasino & Betting Editor
The Labouchere System and Sports Betting
You may not think so, but the Labouchere system can also be used when betting on sports. However, it works best when it is difficult to select a favorite and an outsider. In a perfect world, you would use this strategy when even money odds are found.
We suggest browsing markets that have just two potential outcomes. This makes tennis a good option, because a draw is not possible. For example, if Jack Draper is priced at +100 to beat Casper Ruud.
Using the sequence 1, 2, 3, your stake is calculated through the total of the first and last numbers. That would make $4. In the event that the bet wins, you then place another bet with the other number in the sequence, 2. If that bet wins, the sequence is over with two successes
Labouchere System Pros and Cons
Like every betting strategy of this type, the Labouchere system has its unique pros and cons. Understanding these is key to determining its viability and your precise methodology, so let’s consider the benefits and disadvantages of this cancellation system.
Pros:
- It maximizes the value of each win.
- It provides a structured approach to betting.
- It lets you conservatively chase previous losses.
- It can be used across casino and sports betting verticals.
- You can create initial sequences that reflect your desired returns.
Cons:
- It can place a strain on your bankroll.
- It’s a relatively complex betting system.
The Reverse Labouchere System
You may have also heard of the Reverse Labouchere system, an example of a positive progression betting system. It’s the mirror opposite of the classic Labouchere system, as it simply reverses the outcomes for winning and losing and ultimately requires you to increase your stake with every successful bet.
This can be similarly complex and requires comprehensive understanding, but it has a different focus as a positive progression system. Instead of targeting the recovery of losses, it enables you to effectively safeguard your bankroll by only encouraging you to raise your stake with every win.
| Bet # | Sequence | Bet Amount | Result | Win/Loss | Updated Sequence | Running Total ($) |
|---|---|---|---|---|---|---|
| 1 | 1-2-3-4 | 5 | Win | +5 | 1-2-3-4-5 | +5 |
| 2 | 1-2-3-4-5 | 6 | Win | +6 | 1-2-3-4-5-6 | +11 |
| 3 | 1-2-3-4-5-6 | 7 | Win | +7 | 1-2-3-4-5-6-7 | +18 |
| 4 | 1-2-3-4-5-6-7 | 8 | Loss | -8 | 2-3-4-5-6-7 | +10 |
| 5 | 2-3-4-5-6-7 | 9 | Loss | -9 | 3-4-5-6 | +1 |
| 6 | 3-4-5-6 | 9 | Win | +9 | 3-4-5-6-9 | +10 |
| 7 | 3-4-5-6-9 | 12 | Win | +12 | 3-4-5-6-9-12 | +22 |
| 8 | 3-4-5-6-9-12 | 15 | Win | +15 | 3-4-5-6-9-12-15 | +37 |
| 9 | 3-4-5-6-9-12-15 | 18 | Loss | -18 | 4-5-6-9-12 | +19 |
| 10 | 4-5-6-9-12 | 16 | Win | +16 | 4-5-6-9-12-16 | +35 |
Our Tips for Using the Labouchere System
The Labouchere system offers value across different gambling verticals. However, much depends on your execution and how your initial number sequence reflects your starting bankroll and profit expectations. So, here are some Labouchere betting system tips to keep in mind!
Alternatives to the Labouchere Betting System
This guide has explored the Labouchere and Reverse Labouchere systems in detail. However, these systems may not suit your broader betting strategy or starting bankroll size. If that's the case, it’s important to consider relevant alternatives. These include:
- The Martingale System: The Martingale system is an aggressive strategy that requires bettors to double their stake with every loss. It’s a simple system ideal for bettors with large bankrolls who can fund consecutive losses while scaling their stake dramatically.
- The Fibonacci System: The Fibonacci system combines elements of both the Martingale and Labouchere systems. It compels bettors to increase their bet unit by combining the two previous stakes and move back two steps in the sequence with a win.
- The Paroli System: The Paroli system is a positive progression approach in which you wager double your bet with every win and reset to your base stake with a loss. If you hit three wins in a row, you also reset to your original stake.
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Conclusion
It is important to note that the Labouchere system will not improve your chances of winning or decrease the house edge. However, it is a strategy that gives users consistent profits. It also delivers a framework for you to work around when playing different games. This helps to promote responsible gambling.
As with any betting strategy, the Labouchere system has limitations. It is difficult to use in a fast-paced environment, whether online or at a land-based casino. You must familiarize yourself with how things work beforehand and have numbers ready in your head.
The potential for winning streaks makes the Labouchere system worthwhile. It is also satisfying to tick off numbers as you work through the sequence.
Responsible Gambling
Bankroll management is a key consideration here, as negative progression betting systems may require large wagers before you win. Similarly, the mere concept of chasing losses can cause you to wager irresponsibly and outside your means.
With that in mind, you must set stringent bankroll management rules when deploying the Labouchere system. To learn more about responsible gambling, we’d urge you to check out our responsible gambling page.
