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As a sports bettor, there’s nothing worse than losing a bet in the final moments of a game. Perhaps you already had plans for the money you were about to win, only to end up empty-handed.
While sports bettors are at the mercy of the teams and players they bet on, what if there was a way to gain control by quitting while you’re ahead? Fortunately, such an option exists at some sportsbooks. It’s called early cash-out betting, and it can help you avoid some bad beats if you play your cards right.
With early cash-out betting increasing in popularity, here’s what you need to know about how it works at legal U.S. sportsbooks.
What is Early Cash-Out Betting?
Early cash-out betting is a way to end your bet before the sports contest concludes, enabling you to lock in a profit before things potentially head south or stop the bleeding before things get out of hand. This is not an option for all bets at all sportsbooks, but it’s becoming more popular and widely available.
Cashing out early is a way for sports bettors to guard against unpredictable turns late in games or matches. When you cash out early, the rest of the game becomes irrelevant. The only thing that matters is where your bet stands when you decide to cash out.
This way, bettors can guarantee a profit when they’re ahead or get some of their stake back to minimize their losses if they’re behind.
While early cash-outs are typically used for live, in-game bets, you can also do it before the game starts or on futures bets as well.
How Much Is An Early Cash-Out?
It depends, but an early cash-out will usually be a percentage (less than 100) of your original bet unless your team is ahead and likely to win.
That percentage is calculated based on various factors, including game flow, time left in the game, the current odds for the outcome and win probabilities based on historical data. Like a live bet, early cash-out options can fluctuate throughout a game depending on how the action unfolds.
How To Cash Out Early
After placing your bet and the game begins, your bet is officially live. Once the game is underway, you’ll have the option to cash out if your sportsbook offers it. This option will appear on the screen on the sportsbook app or website if it’s available.
In some cases, you can cash out as soon as the game starts, but in other cases, you may need to wait a bit before the option becomes available. Sometimes the sportsbook will remove the option later in the game if the score is close and the game is still up for grabs. In other words, don’t assume you’ll be able to cash out at any point.
When available, you simply need to click the cash-out button next to your bet and confirm your decision. Once you do this, the cash-out is final, and your bet is over. The sportsbook will then process the request and deliver your payout, which usually happens quickly.
Early Cash-Out Examples
Let’s use an example with a spread bet between the Boston Celtics and Los Angeles Lakers to show how the cash-out function works.
The sportsbook lists the Celtics as five-point favorites, so you place a $100 bet on them to cover at -110 odds, which would pay out a profit of $90.91 if it hits. Boston starts slowly, however, and enters the fourth quarter down 10 points. At this point, the Celtics will be lucky to win, let alone win by five.
While Boston could still come back and cash your wager, it’s not looking probable. The sportsbook offers an early cash-out option of $21, which isn’t as much as your potential payout if they come back, but it’s better than losing the full $100 if they don’t. It’s worth considering.
Sportsbooks also have early cash-out options for parlays where you can trigger it once a few of your legs have hit. In both cases, you have to weigh whether the certainty of a partial payout is better than risking a total loss for a higher reward.
Pros And Cons Of Early Cash-Out
Like all sports bets, cashing out early has pros and cons that you must consider before pulling the trigger.
Pros
- More control and protection over your bet’s outcome
- Less vulnerability to unexpected outcomes and bad beats
- Guaranteed profits and reduced losses in some cases
There can be downsides to cashing out early, however.
Cons
- You risk locking in a loss on a bet that ultimately wins
- The partial payout won’t be as much as the final payout if you wait for the game to end
- This strategy could end up costing you money
Deciding whether or not to cash out early is up to you and depends on the level of risk you’re comfortable with. If you’re more risk-averse, it could be a good way to limit your losses while still enjoying sports betting.
Frequently Asked Questions (FAQs)
Why is cashing out early allowed?
Similar to television’s streaming wars, sportsbooks constantly compete to keep pace with and outdo each other. That’s why many sportsbooks are so similar in terms of their bet types, sports you can bet on, promotions and so on. Once one sportsbook introduced an early cash-out feature, it was inevitable that others would follow.
If there’s a user demand for something, it behooves a sportsbook to offer it. Otherwise, a bettor can easily pivot to a different book with the desired feature.
Sportsbooks can also benefit from early cash-outs. We mentioned how cashing out early can either limit a user’s winnings or lock in a loss, both of which are profitable for the sportsbook.
Lastly, having an early cash-out feature can help sportsbooks attract and retain new users, especially if people want to try sports betting but are nervous about losing money. By providing a safety net of sorts, new and existing users can feel more comfortable betting and may even be more apt to take risks betting on events they wouldn’t usually wager on.
Where can you cash out early?
Several of the top legal online sportsbooks in the U.S. provide an early cash-out feature, including DraftKings, FanDuel, BetMGM, Caesars, Fanatics and BetRivers.
It’s worth noting that in the case of BetRivers, the term used there is “buy out” rather than “cash out,” but it’s the same. It should also be mentioned that cashing out early is only available through a sportsbook’s website or mobile app, as cashing out early in person is not offered at retail sportsbooks.
When joining a new site, check out the cash-out feature (if there is one) and its terms and conditions, as these can differ from site to site.
When should you cash out early?
None of us can predict the future, so deciding when to cash out early is an educated guess. You won’t always nail the timing, but there are several cases when cashing out early can be a winning strategy:
- If it’s still relatively early in the game, but the sportsbook offers the bulk of your winnings. For example, if the game is half over, but you can cash out 75% of your winnings. It’s worth considering because much can change in the second half.
- If there’s a minimum profit you’d be happy with accepting. Say you stand to win $100 at the end of the game but would still be satisfied with $70, you may want to take the guaranteed profit rather than risk losing it.
- If you bet on an underdog and that team takes an early lead, you may want to capitalize before the superior team potentially catches up.
- If you’ve already hit part of your parlay but still need other legs to cash. Parlays are riskier than any other bet type, and cashing out can be worthwhile if you don’t feel good about the last leg(s) hitting.
- If your team falls behind early and digs itself too deep of a hole, it can be wise to cut your losses rather than go down with the ship.
Whatever your rationale, you’ll need to act swiftly and decisively. Early cash-outs will update and potentially disappear at various points of the game, so trust your gut and don’t hesitate to cash out if you like the offer, as you may not get a better one.
When should you not cash out early?
While there are times when cashing out early makes sense, there are other scenarios when it isn’t a smart strategy.
- When the end of the game is approaching and your team has a comfortable lead, you’re better off waiting for the final result to maximize your profit.
- If your team falls behind early in the game, don’t panic. There’s plenty of time for a comeback, so wait to see how things play out before throwing in the towel.
- If your parlay only needs one more leg to cash, you may not want to cash out early, as you could be forfeiting a significant profit.
Ultimately, if you’re confident in your bet and believe it still has a reasonable chance of hitting, don’t give up on it. If you’re less confident and the odds are unfavorable, cashing out early could save you money, which you can then put down on a different bet if desired.
Knowing when to cash out early (or not) is more art than science. You’ll get a feel for it as you gain more betting experience and develop a strategy. You also have to be willing to take the good with the bad, as it will save you money in some cases and cost you money in others.
Overall, an early cash-out feature can be helpful for any sports bettor, and knowing how and when to use it can give you an edge while also protecting your wallet.
