A more thorough explanation:

Definition: A layoff bet is a type of bet placed by a bookmaker to reduce their risk of losing too much money or to balance the amount of money bet on each side of a wager. It is a way for bookmakers to protect themselves against excessive losses.

Example: Let's say a bookmaker has taken a lot of bets on one team to win a football game, and they are worried that if that team wins, they will have to pay out more money than they can afford. To reduce their risk, the bookmaker might place a layoff bet on the other team to win. This way, if the first team wins, the bookmaker will still make a profit from the layoff bet.

Explanation: The example illustrates how a layoff bet works in practice. Bookmakers use this strategy to minimize their losses and ensure that they make a profit no matter what the outcome of the wager is. By placing a bet on the opposite outcome, they can balance the amount of money bet on each side and reduce their risk of losing too much money.