Draw no bet means you wager on one team to win a match, but your stake is refunded if it ends in a draw. This market works as insurance in case your bet does not come in. However, if you back one team and they lose the match, then you lose your stake.
A draw no bet simply works by eliminating the option of a draw from a bet. Therefore, as a bettor, you can place your wagers either on a home or away win. This means that if your predictions are correct, you win. However, if the game ends in a draw, your wager is refunded since there is neither a win nor loss.