Cashing out of your bets early? Think again.
Bettors in New Jersey have probably noticed a “Cash Out” feature from many of the legal betting apps. To “cash out” out means to get out of your bet early, locking in a profit or a loss. Sounds great in theory, but in practice, you may be paying an extra fee for that convenience. If you’re looking to hedge your bet, there may be a better option.
In this quick read, we’ll explain what cash out is, and show you how to use our cash out analysis tool to ensure you’re getting the best price when you’re getting out of a bet!
What is cash out?
Cashing out is basically hedging your bet. You’re selling your bet back to the bookmaker and collecting cash in order to lock in a profit or limit a loss.
Beware of the Bookie’s Cash Out
When the bookie offers you a cash out, you’ll want to make sure that you’re getting the best price available before cashing out. As Captain Jack (@capjack2000), states
“Right now, taking cash out offers at sportsbooks is like taking the insurance bet in Blackjack (card counting aside). It’s a bad bet for the player”
The reason the bookie’s cash out is often a bad bet for the player is that the book can add additional margin into the cash-out offer they extend you. If you can eliminate that extra cost, you’ll ensure you’re getting the best value when cashing out.
This cash out tool lets you quickly calculate if you’re better off cashing out or hedging your bet.
Using the Tool
Let’s say you’ve placed a $100 moneyline bet on the Detroit Lions to beat the Chicago Bears. The odds are +150, so your $100 bet has a total potential return of $250.
Halfway into the game, the Lions are beating the Bears 10-7, and the bookmaker is now giving you a cash out offer of $115. If you’d like to hedge your bet, the first thing you should do is try and find the best possible odds you can on the opposite outcome.
Let’s say the best price you can find on the Bears moneyline is +100. Should you accept the cash out offer or manually bet the Bears?
Simply use the tool to enter this information. Enter your original bet; $100 at +150 odds, then enter the cash out offer; $115. Finally, enter the best odds you can find on the opposite outcome; +100.
The tool will then compare the cash out and hedge options for you, with profit/loss result for each. For the hedge option, we’ll tell you how much you’d have to bet. The option that yield the best result will have a green check mark.
In this example, you’d profit $15 by taking the cash out offer, but you’d earn a $25 profit by betting $125 on the Bears at +100. Since the manual hedge is the better option, thats what we’d recommend.