What is Cash-Out Betting? | Cash-Out Betting Explained
The cash out option is now a sought after feature for many punters. There are a number of reasons for this, which we will do our best to explain in the clearest way possible.
- Definition: what does the term ‘cash out’ mean in betting?
- How it works: in order to reap the full benefits of a cash out option it is crucial that you understand how the option works with live betting.
- Benefits: how does this option benefit both the punter and the bookmaker?
So what does ‘cash out’ actually mean?
The bookmakers cash out option is another feature joining the live betting or in-play family. The idea is that cash out offers are made in real-time, before the final result is decided. In other words, cash out allows punters to get their money back before the game has ended if the result is going against their favour. This option is useful for punters who foresee a loss or see an unlikely moment in their favour because the amount of money you get back is determined at the time of cashing out.
Depending on the likelihood of your bet, you could get back less that your initial stake (better than losing it all) or you could end up with a profit on your original stake. In-play markets are usually volatile, so the amount you can gain from the cash out option is difficult to predict, especially in the final stage of races or games, which is often the time when punters are most likely to use the cash out option. As the chances of winning becoming less or more obvious, fluctuations in the cash out option decrease and increase in response. In some cases, the cash out option will be removed altogether.
Let’s explain how this works with a real example:
Imagine you have placed 3 bets of £10 each on three different football teams with odds of 1/1, 3/1 and 15/8. The potential to win is £230 if all your bets win. Imagine that with five minutes left in all three games, the result is the same: your teams are winning 1-0. You are offered, at this point, a cash out option worth £180. What are your options at this stage? Well, you could accept the cash out and walk away with a guaranteed £180 (even if your team concedes an equalising goal).
You could also reject the cash out option, but what happens then? Well, if the score remains the same across the board, you will walk away with the maximum win of £230, but of course if this is not the case and your teams lose or concede an equalising goal, your winnings will be significantly smaller altogether. The cash out option, simply put, is like walking away with the money on “Who Wants to be a Millionaire?”
It does seem strange that some bookmakers would give punters the best opportunity to minimise their losses. How do they profit from this, one might ask? The main reason for the introduction of this option is simple: the punters love it. Not only does it give them a bit more security when placing bets, but it also adds that bit of extra excitement to the betting process.
With the popularity of live and in-play betting, the cash out option is simply yet another advancement in innovative betting techniques. Online betting sites that choose not to offer the cash out option may wish to rethink this in the future.
With that being said, the cash out option has caused some controversy in betting circles. There are those who like securing their bets without the annoyance of late goals messing up their progress, but there are others who are against the cash out option, arguing that the notion of a ‘value bet’ is lost.
Now that you have a clear understanding of what cashing out actually means, take a look OpenOdds’ list of bookmakers that provide cash out options.