What is a bonus bet?

A bonus bet is sportsbook credit you can wager but cannot withdraw. If the bet wins, you are paid the winnings only; the bonus stake is not returned. If it loses, you lose nothing you paid for. That one rule, stake not returned, is why a $100 bonus bet is not worth $100. What it is worth is the profit it can produce, which depends on the odds you place it at and whether you hedge it. Used well, that is $65 to $80 in cash. Used on a short favourite, it is closer to $35.

Why face value is not cash value

A cash bet at fair odds is worth exactly what you stake, because on average the wins repay the losses. A bonus bet is missing the stake from every win, so its expected value is the bonus times the winnings per dollar times the chance of winning. At a fair price that simplifies to something easy to remember: a bonus bet is worth its face value multiplied by the chance the bet loses. At even money that is 50%. At +300 it is 75%. On a −200 favourite it is 33%. Real prices carry the book's margin, so each figure comes in a little lower, as the worked numbers below show.

Why longer odds suit a bonus bet

The stake you never get back is a fixed cost of $100 on every winning bet. At +300 the win pays three times that cost, so losing the stake takes a quarter of the payout; at −200 the win pays half the cost, so the missing stake takes two thirds. Longer odds win less often, but the average keeps more of the face value. The limit is the other side of the market: past about +500 the opposite price is usually poor enough that hedging it gets expensive, which the conversion rate guide works through price by price.

The terms that come with a bonus bet

Every bonus bet carries its own terms, and they decide what you can do with it. Expiry windows are short, often a week or two, and an expired bonus bet is worth nothing. Some tokens carry a minimum odds requirement, or can only be used on one sport, one market type, or parlays. Some can be split into several smaller bets and some must be placed in one piece. Some books will not let you cash out a bet placed with bonus funds. And the rules on a voided bet vary: some return the token, some do not. All of this is on the offer's terms page or the token itself in your account, and it is worth two minutes before you place anything.

Bonus bet, free bet, site credit: what's the difference?

“Free bet” is the older name for the same thing, and “risk-free bet” was the old marketing name for an offer that refunded a losing first bet as bonus bets; the American Gaming Association's marketing code for its member books now prohibits “risk free” in ads, which is part of why the industry moved to “bonus bet” and “no sweat.” The name on the offer matters less than one test: does a win return the stake? If not, it is a bonus bet. If it does, it is site credit, which is worth much more and wants the opposite odds; see site credit vs bonus bets.

Your two options with one

You can place it at long odds and accept the result: the average is good, but most of the time you finish with nothing. Or you can hedge it: bet the other side of the same market with cash at a different book, sized so you finish with the same profit whichever side wins. Hedging gives up a few points of the average in exchange for a known result, usually 65% to 80% of face value. How to convert bonus bets walks through the formula, and the hedge formula guide derives it. Promotions are also covered as a whole in promotions.

Doing it with TrueEdge

The Promo Optimizer takes the bonus bet you hold (pick Bonus bet under Token type, then the amount and the book) and searches your books for the hedge pairs that convert it best right now, with both stakes and the cash each plan needs. The walkthrough converts a $100 bonus bet from start to finish.