Cash-out in Betting Shops or How to Sell a Bet?

Redemption of a bet (Cash Out) is a request for early settlement of a bet at a betting shop or on the stock exchange before the event ends. When using this opportunity, the bettor either fixes a smaller profit than that which he could potentially receive, or requests a calculation to minimize potential loss.

What is Cash Out in bets? It is a kind of insurance bet. The pioneer in using the “cash out” function in 2011 was the famous Betfair exchange. Its example was followed by online bookmakers. Today the function is available in many shops and in a number of variations: for example, to order the calculation of some part of the bet, and leave the other in the game.

How to calculate cash out?

There is a special formula by which you can calculate the profit or loss that a player will receive when buying a bet, but without taking into account the margin:

(X x (Y – 1) – X x (Z – 1)) / Z,

• X — the amount of the initial bet;
• Y — the initial betting odds;
• Z — quote at the time of the buyback transaction.

To understand how to use the formula and what gives a buyback bet, consider a good example. Take the match Manchester City — Arsenal. Suppose that the bookmakers give the “cannoneers” win odds 3. We bet 1000 dollars on their victory, and by the middle of the first half, Arsenal will score 1-0. The odds for the victory of the guests drops to 1.60, but the hosts begin to wake up and bring down hail of attacks at the gates of Londoners.

Let’s calculate how much we will get if at this moment we decide on cash-out:

(1000 x (3 – 1) – 1000 dollars x (1.6 – 1)) / 1.6 = (2000 – 600) / 1.6 = 1400 / 1.6 = 875 dollars

Thus, we will get 875 dollars of net profit if we exit the game at this moment. At the same time, the potential net profit if Arsenal wins will amount to 2,000 dollars. Not so bad, considering that maintaining a winning score on the Man City field is an extremely difficult task.

Similarly, the size of the net loss is calculated if the game unexpectedly went not according to our scenario, and the odds in live increased. For example, we bet 1,000 dollars on Arsenal for 3, but the hosts took the match, and the odds jumped to 3.5. If at this moment we want to exit the game and fix the loss so as not to lose more, we consider:

(1000 x (3 – 1) – 1000 dollars x (3.5 – 1)) / 3.5 = (2000 – 2500) / 3.5 = -500 / 3.5 = -143 dollars.

Total, if we leave the game on time, then we will lose much less than the amount of the bet.

But we should not forget about the bookmaker margin for using the bet buyback function. In reality, we will get back not 875 dollars of net profit, but a little less. How much less depends on the bookmaker and the margin laid down in this institution.

Benefits of cash-out

• You just need to click on one button without having to calculate secure bets manually.
• The possibility of profit taking. Having made a risky transaction and observing that events are developing according to our scenario, we can take profit without waiting for the favorite to pull themselves together and return everything to normal.
• The ability to fix part of the bet. If the development of events is unfavorable for us, we can go on the loss of part of the amount to get back everything else.
• New predictions for soccer, tennis, hockey, basketball, etc. are created every hour.
• From now on, we not only monitor the fate of the bet, but literally every moment we calculate the risks and talk about whether it’s time to make a ransom or you need to wait a little longer.

Disadvantages of cash-out

• The “cash out” function is less profitable than self-insurance betting. For its use, we pay the margin of the bookmaker twice.
• The cash out margin in accumulators is even higher than in single bets.
• You can make a mistake and lose a lot of money. Many bettors, preferring a titmouse to a crane, did not pass the test of patience and confidence in their bet and bought the bet shortly before receiving a large win. A case in point is the Briton John Prike, who, for fun, bet 20 pounds on the Leicester championship. Since the odds of winning the Foxes were crazy — 5001 — then the fan could in fact become richer by more than 100 thousand pounds. However, at some stage, the Leicester fan did not pass the test with big bucks and did not believe in the Ranieri tale and used the buyback bet, taking 29 thousand pounds. Cash Out brought him a lot of money, but “took” several times more.
• Take a look at the freebets offered by the bookmaker.

How online has changed the behavior of bettors

The Internet has fundamentally changed the structural characteristics of sports betting. In Europe, bets were made earlier during the working week, and football games were played as events on the weekend (the bet was made once a week). This delay in remuneration was a protective factor protecting players from gambling addiction, including without shaking our dopamine system. In online bets, one of the most important structural characteristics — the time between bets (frequency of bids) — decreased from once a week to once every few minutes (in some cases).

Globalization has also expanded the capabilities of bookmakers. Now the time zone does not matter. Betting became round-the-clock. If a player wants to make a bet, all they need is a device with Internet access. Virtual sport has expanded the already wide lines.

Although the time between bets (frequency of bets) was reduced to almost zero, the duration of the bet (time per bet) remained at approximately the same level. Until December 2012, William Hill introduced a cash-out.

The psychology of cash-out

Bets have turned into a potentially continuous game, reminiscent of the stock market. As in investments, the value of a stock (rate) changes continuously and in real time. The result of the match has lost its decisive importance; it is much more important how much the bet will cost in the coming minutes.

From now on, inaction became action. Until the player used the cash-out, every second they seemed to make a new bet. Each bet turned into a commodity.

Marketers of bookmakers presented cash-out as a mechanism for control over bets. They convince that cash-out is an aid to bettors. Here are just cashing out the bet at the current odds, which may be lower than the starting one. Plus, immediately after the bet is accepted by the bookmaker, they automatically devalue ​​it. Even if a second ago you bet $1 on an event that has not yet begun, a bookmaker will offer to return only $0.95, although nothing has happened during this time.

Like any other type of bet, a cash-out does not guarantee a profit. Moreover, in inept hands, he will only reduce the player’s bank.

Cash-out features

Bettors need to understand what the cash-out option is. To do this, let’s consider its features.

Cash-out before the start of a sporting event

BS often returns fully delivered money. In a situation where the bookmaker received additional data that had an impact on the balance of power in the match, the payout will be reduced.

After the start of the event

The option works in a situation when a bettor needs to cancel a bet in live mode, i.e. the duel has already begun. The amount of funds paid depends directly on the probability of a bet being made at the current moment. The less chance of success of the bet, the less money will be returned. Another likely situation is when a bettor receives 100% of the bet size.

How to use cash-out

Let’s look at tips on how to work with the cash-out option as efficiently as possible:

• It is not recommended to redeem a bet until a sports duel is started. In this situation, you unjustifiably drain part of the money for no particular reason.
• Go to a bookmaker and place your bets right now.
• Determine in advance how much the bet return will suit you, and then wait until BS offers it. In a different situation, there are risks that the amount of money will differ from the one you want to win.
• You should not choose a cash-out when the bet loses significantly, and you will be credited with only a small amount. No need to return money when predicting billiards, volleyball, table or tennis and other sports, where an opponent can win by losing in the course of the match in sets 0:2. In such situations, you can win ten times more than the cash-out amount.
• Free sports predictions 24 hours a day.
• Do not choose a cash-out when you are sure that your bet will pass. Cash-out often leads novice bettors on the right track and reduces the losses of the bookmaker.

Tips for using cash-out

At the end of the article we will give some tips on how best to use this option:

• Do not make a buyback bet before the event. In this case, you unreasonably lose part of the wagered amount without good reason.
• Do not use the function when your bet loses a lot and you are offered a very small amount. Especially this cannot be done in sports such as tennis or table tennis, volleyball, billiards and others, where you can pull out a match at any time, for example, losing in volleyball in games 0-2, win 3-2. In this case, you can win 10-20 times more than you could get with the cash-out.
• Determine the amount that suits you for the early return of the bet and wait for the bookmaker to offer it. Otherwise, the risk of losing the entire amount will not meet your expectation of a win.
• Find out which bookmaker you can get a sign-up bonus from.
• Do not think about a cash-out if you are fully confident in the positive result of your bet. The possibility of an early redemption can lead the beginners astray, then the bookmaker will reduce their losses, and the player will not receive the entire amount won.

As an option, Cash Out helped the player get almost $62,000

In the UK, a BetVictor betting company player, having made an accumulator bet of 7 events in the amount of £20 ($30), used the “cash out” function and withdrawn £39,933.43 after 6 accumulator bets were won. As it turned out, he did it not in vain — the seventh bet on the accumulator turned out to be unsuccessful, and if the player didn’t use the “cash out” function, the whole accumulator would go downhill.

The structure of the accumulator includes bets on seven matches of the 17th round of the English Premier League. All these matches were played on December 19, with six of them starting at the same time, and the seventh game between Newcastle and Aston Villa took place later in the evening. The player decided to insure the bet on this match after the last six “wagons” of the accumulator. By the way, it was made for the victory of Aston Villa, while the match ended in a draw 1-1.

It is worth noting that the accumulator was quite bold — with accurate outcomes and bets on underdogs:

• Aston Villa will outplay Newcastle (odds 4.2);
• “Crystal Palace” win the “Stoke” 2-1 (factor of 13.0);
• “Norwich” replay “Manchester United” (factor 8.5);
• “Bournemouth” win in West Bromwich “2-1 (factor of 13.0);
• “Leicester” to win and both teams to score (odds 5.5);
• “Tottenham” replay “Southampton” 2-0 (factor of 16.0);
• Total Over 2.5 in the game of Chelsea and Sunderland (odds 1.87).

As can be seen from the accumulator, the passage of six events at once was akin to a miracle, and the player’s desire to insure such a masterpiece is quite understandable, especially when the amount for payment has already gathered a decent one. Given that the 17th round was before Christmas, such a win is just a Christmas gift of fate.

We remind you that the “cash out” option is available for players of Bet365, Sportingbet, William Hill, Titan Bet, Rivalo, 10Bet and some other bookmakers.

Should you use the cash-out strategy in bets?

Despite the fact that the cash-out function minimizes losses and insures the player from losing money, its use cannot be elevated to absolute, and it is better to use “cash-out” in exceptional cases. The reason is that every bet made for a bettor is a greater risk than for a bookmaker, which lays a margin in odds. Each time a player bets and then “leaves” the game, they pay the bookmaker a margin not once, but twice. Therefore, in betting shops, buying a bet will worsen the performance of the game at a distance.

On the betting exchange, the cash-out function is more justified, because there is no margin, which greatly facilitates trading.

Thus, buying a bet in BS is a useful function if you use it in exceptional cases when it comes to potentially large losses or saving a significant amount of winnings. If you use the function on a regular basis, this will lead to deterioration in earnings indicators at a distance and absolutely will not bring the bettor into a plus. Since there is no margin on betting exchanges, and players bet not with a bookmaker, but with each other, there cash-out is a more popular tool with which you can earn.