Sports Betting 101: Cash Out Sports Betting Guide
Learn the pros and cons of the cash out feature in sports betting, and discover how to strategically use it to control your bets and maximize your winnings.
Last updated: October 22, 2023
With the epic rise of sports betting in the US, sportsbooks constantly seek innovative ways to captivate and retain their customers. Among the features introduced, Cash Out has emerged as a particularly popular option.
Cash Out provides bettors a valuable tool for controlling their bets. Whether securing profits early or minimizing losses, the Cash Out feature empowers bettors with greater control over their sports betting experience. By understanding the pros and cons associated with cashing out, bettors can make informed decisions and enhance their overall sports betting strategy.
This guide will delve into the intricacies of the Cash Out feature, providing valuable insights on when it’s best to utilize it and when it might be wise to ignore the offered winnings.
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What is Cash Out in Sports Betting?
Cash Out gives bettors control over their wagers by allowing them to terminate their bet before the event concludes. It lets you secure profits early or minimize losses if things aren’t going well. Use it strategically, not as a long-term strategy.
You won’t always have the option to Cash Out, and it often comes with fees. However, most sportsbooks offer this feature in their apps for most professional sporting events.
| Sportsbook | Cash Out Option | Edit Bet Option |
|---|---|---|
| DraftKings | ✅ | ✅ |
| BetMGM | ✅ | ✅ |
| BetRivers | ✅ | ✅ |
When to Lock in Your Profit and Cash Out
The most significant advantage of cashing out is the control it provides over the outcome of your bet. This feature offers two main variants.
Firstly, bettors can secure a guaranteed profit if their bet is heading in the right direction even before the final outcome. This applies to any bet, including futures or a parlay. Here are a couple of examples:
Example 1:
- Bet on the Boston Bruins to win the Eastern Conference in the NHL (regular season) at +250 odds.
- Your stake is $100, with a potential payout of $350.
- The Bruins are leading the conference standings with a significant five-game lead over the second-placed team, with eight games left to play.
- At this point, the sportsbook offers you a $325 payout with eight games remaining.
In this scenario, it is improbable for the Bruins to lose their advantage in the final eight games. By cashing out, you can take a $25 reduction in the original payout amount but eliminate any potential late drama or scare. Additionally, the Cash Out feature allows you to receive your money without waiting for the season to finish.
However, the downside is that by cashing out, you essentially give away $25 to the sportsbook. Given the significant advantage of the Bruins, it is a smart play to pass on the Cash Out option, as the bet will almost certainly pay out in a couple of weeks.
Example 2:
- You placed a $10 four-leg parlay bet at +1200 odds, with potential total winnings of $130.
- You have already won three bets, each with -110 odds, and are waiting for the last bet (also with -110 odds) to complete the parlay.
- The final match of the parlay has not started yet, and the sportsbook offers you $59 to cash out immediately.
- If you believe that the final bet of your parlay is risky or you have obtained new information that suggests it will not go in your favor, using the Cash Out feature appears logical.
On the other hand, if you have not received any new information and stick to your original prediction, it is advisable to decline the Cash Out offer.
From a mathematical standpoint, you have already won three bets with -110 odds, which should yield a payout of $68.5. By accepting the $59 Cash Out offer, you would be giving up on the $9.5 you have already won.
It is important to note that the most significant disadvantage of the Cash Out feature is that you must pay a fee (juice) to the sportsbook to lock in your winnings. In most cases, it is not a profitable long-term strategy.
When to Cut Your Losses and Cash Out
If your bet does not start positively, the Cash Out feature allows you to terminate the wager and minimize losses compared to the maximum amount of your stake. Here is an example:
- You placed a $100 wager on the Denver Nuggets to beat the Sacramento Kings with a -6 spread at -110 odds.
- The Kings lead by 8 points going into the fourth quarter.
- For your pick to be successful, the Nuggets need to stage a huge comeback and win the final quarter by 15 or more points.
- The sportsbook offers you a $22 payout before the start of the fourth quarter
In this scenario, you can retrieve $22 from your original stake and save it from what seems to be a losing bet. The advantage is that, instead of losing the entire $100 stake, you accept a loss of $78 by cashing out before the start of the final quarter.
However, the potential downside is that you miss the opportunity to witness a fourth-quarter comeback by the Denver Nuggets, potentially resulting in a win by at least seven points.
Remember, your initial payout was $191, and by cashing out, you settle for just $22. It represents a significant reduction. The feeling of locking in a loss on a bet that could potentially turn into a winner may not be appealing.
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Conclusion
In most cases, Cash Outs tend to favor the sportsbooks. They determine the amount offered based on a combination of factors such as live odds, win/loss probabilities, historical information, time remaining in the match, and game flow. Sportsbooks always ensure a long-term advantage for themselves through this feature.
However, it is still beneficial to have the option of controlling your bets. If you are watching a game and become sure of the failure of your pick, having an exit strategy and the chance to minimize losses is positive. The same applies to situations where you are leading in a bet, but the game flow suggests a potential comeback.
Remember, the goal is not to rely heavily on the Cash Out feature long-term strategy but to use it strategically when necessary.
FAQ
Do all sportsbooks have Cash Out option?
Not all licensed sportsbooks in the US have this option, but all of the operators we promote on the site are including the cash out option.
How to use Cash Out option?
If a sports bettor decides not to wait for their final 6th leg on a parlay, they should check the initial bet and look for the “Cash Out” option at the bottom of the list. A simple click will do the job.
Does Cash Out favor the sportsbooks or the players
If you take a long portion of stats into analysis, the house will have more advantage from Cash Out option than the players. Of course, there are instances where players can recognize the value in the offered payout and cash out their winnings while the game last.
How are cash outs calculated?
The amount of cash outs offered depend on various factors, such as game flow, time left in the game, the current odds for the outcome and win probabilities based on historical data.