A cash-out is a term used in legal sports betting. It enables sports bettors to accept a payout that is less than the winning amount. It must happen before the competition ends so it can be seen as a live in-game betting feature.
What is the benefit of a cash-out?
Sports bettors can lock up their winnings without taking the risk of letting the bet play out until the end. It also offers them a way to cut their losses. Bettors who feel they have little chance of winning and elect to cash out can cut their loss to a smaller amount.
In the U.S., a cash-out is exclusive to online and mobile betting. When bettors cash out a winning bet at a mobile sportsbook, they can lock in their profit. They receive less than the maximum amount, so the Sportsbook benefits too.
How to take a cash-out
A cash-out offer should appear on a live betting slip or in the active bets section of your account. You can click the button and buy out of the bet for the amount offered. The money will appear in your account when the cash-out is settled. You may not be able to cash out for all bets as this will depend on a specific sportsbook and its terms.
How do sportsbooks calculate cash out?
A sportsbook calculates a cash-out by assessing the current value of a wager. Calculating the value of a bet is more straightforward for moneyline and point-spread bets. It is more complex with parlays and futures. Determining cash-out offers comes from combining real-time odds and risk removal based on the amount of the initial wager.
The benefit of a sportsbook offering a cash-out is that it isn’t for the full amount, so the sportsbook can save money. When a bet is losing, a cash-out can help the sportsbook to lock in its win and keep the bettor in action. Considering the sports betting market size, cash-outs could be pretty beneficial for sportsbooks.
Should you take a cash out?
One of the most profitable betting strategies is to know when it’s time to get out. However, once you accept a cash-out offer, there’s no going back. If you accept a cash-out offer, you limit the amount you win, and that can add up over the long term. You can cut your losses, but you also lose out on a possible win. There are often great comebacks in sports.