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: June 30, 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.
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.
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:
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.
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.
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:
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.
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.