What is a Bonus Bet? How Sportsbook Bet Credits Work
James Wilson
Sports Betting Analyst
Bonus bets (also called free bets or bet credits) are one of the most common promotions offered by sportsbooks. They seem straightforward at first glance—free money to bet with—but understanding how they actually work and how to maximize their value requires some knowledge that many bettors don't have.
In this comprehensive guide, we'll explain exactly what bonus bets are, how they differ from regular cash bets, the various types you might encounter, and strategies to get the most value from them.
What is a Bonus Bet?
A bonus bet is a promotional credit offered by a sportsbook that allows you to place a wager without using your own money. Think of it as a voucher that can be used to make a bet, but with certain restrictions and conditions that don't apply to regular cash bets.
Bonus bets are not actual cash—they are a form of betting credit that can only be used to place wagers within the sportsbook. You cannot withdraw a bonus bet directly; you must use it to place a wager first.
The most important distinction between bonus bets and cash bets is how they pay out when you win:
Key Difference in Payouts:
- Cash bet win: You receive both your original stake + the profit
- Bonus bet win: You receive only the profit, not the original stake
Example: If you place a $100 cash bet at +200 odds and win, you'll receive $300 ($100 stake + $200 profit). If you place a $100 bonus bet at the same odds and win, you'll receive only $200 (just the profit).
Common Types of Bonus Bets
1. Signup Bonus Bets
Offered to new customers as part of welcome promotions, usually requiring a first deposit or qualifying bet.
Example: "Bet $5, Get $150 in Bonus Bets"
2. Refund Bonus Bets
Provided when a specific bet loses, returning your stake as a bonus bet.
Example: "If your First TD Scorer bet loses but your player scores later in the game, get your stake back as a bonus bet up to $25"
3. Loyalty Bonus Bets
Awarded to regular customers as part of loyalty programs or for special events.
Example: "$10 Bonus Bet for every 5 wagers of $50+"
4. Refer-a-Friend Bonus Bets
Earned by referring new customers to the sportsbook.
Example: "Get a $50 Bonus Bet for each friend who signs up and deposits"
How Do Bonus Bets Work?
Using a bonus bet involves a specific process with several key restrictions and conditions:
1. Receiving the Bonus Bet
Bonus bets are typically credited to your account after:
- Meeting a qualifying action (placing a first bet, making a deposit, etc.)
- A promotion-specific event occurs (your bet loses, a game ends in overtime, etc.)
- Participating in a loyalty program or referral system
Once credited, bonus bets will appear in your account or bet slip, labeled distinctly from your cash balance.
2. Using the Bonus Bet
When placing a wager, you'll typically see an option to use your bonus bet instead of your cash balance. Key characteristics of using bonus bets include:
- One-time use: Each bonus bet can typically only be used once, regardless of whether it wins or loses
- Indivisible: Most bonus bets must be used in their entirety (a $50 bonus bet can't be split into multiple smaller bets)
- Minimum odds: Many sportsbooks require bonus bets to be placed on selections with minimum odds (e.g., -200 or greater)
- Market restrictions: Some bonus bets may be restricted to certain sports, leagues, or bet types
3. Bonus Bet Settlement & Payouts
The key distinction that affects the value of bonus bets is the payout structure:
| OUTCOME | $100 CASH BET @ +200 ODDS | $100 BONUS BET @ +200 ODDS |
|---|---|---|
| Win | $300 returned ($100 stake + $200 profit) | $200 returned (profit only) |
| Lose | Lose $100 | Bonus bet is consumed (no additional loss) |
This "profit only" payout structure effectively reduces the real value of a bonus bet compared to its face value. A $100 bonus bet is generally valued at approximately $50-70 in real money, depending on the odds you place it on.
Bonus Bet Restrictions and Terms
Sportsbooks typically impose various restrictions on bonus bets. The most common include:
1. Expiration Dates
Bonus bets almost always have an expiration date, typically ranging from 7 to 30 days after issuance. If not used within this timeframe, they'll be removed from your account without compensation.
2. Minimum Odds Requirements
To prevent bettors from using bonus bets on heavy favorites with near-certain outcomes, sportsbooks often set minimum odds requirements:
- Common minimum odds include -200, -150, or -300 (varying by sportsbook)
- Some require minimum odds for each leg of a parlay placed with a bonus bet
3. Bet Type Restrictions
Certain types of wagers may be excluded when using bonus bets:
- Cash out functionality is often disabled for bonus bet wagers
- Some sportsbooks don't allow bonus bets on parlays, teasers, or round robins
- Futures markets or specific prop bets may be excluded
4. Bonus Bet Division Rules
How bonus bets can be utilized varies by sportsbook:
- Single-use tokens: Most common format; must be used in one wager
- Divisible credit: Some sportsbooks allow splitting bonus bets into multiple wagers
- Multiple tokens: Some promotions provide several smaller bonus bets rather than one large one
Example: Reading the Fine Print
Here's a typical set of terms for a bonus bet promotion:
Bonus Bet Terms & Conditions:
- Must be used within 7 days of issuance
- Must be wagered on markets with odds of -200 or greater
- Cannot be used on parlays with more than 4 legs
- Bonus bet stake not returned in winnings
- Cannot be combined with other promotions
- Cash out not available for wagers placed with bonus bets
Always read these terms carefully before claiming or using a bonus bet.
Optimizing Bonus Bet Value
Because bonus bets only return profits and not the stake, the odds you choose significantly impact their value. Here are strategies to maximize the expected value of your bonus bets:
1. Target Higher Odds Markets
For bonus bets, higher odds generally provide better value due to the "profit only" payout structure:
Expected Value Comparison:
- $100 bonus bet at -110 odds:
- If you win (47.6% chance): You get $91
- If you lose (52.4% chance): You get $0
- Expected value: $91 × 0.476 = $43.30
- $100 bonus bet at +300 odds:
- If you win (25% chance): You get $300
- If you lose (75% chance): You get $0
- Expected value: $300 × 0.25 = $75.00
The optimal odds for most bonus bets typically fall around +300 to +500, balancing the increased payout against the lower probability of winning.
2. Hedging Bonus Bets
A popular strategy to guarantee profit from a bonus bet is hedging—betting on the opposite outcome at another sportsbook:
Hedging Example:
- You have a $100 bonus bet
- Place it on Team A at +300 odds
- Find Team B (the opponent) at odds of +100 at another sportsbook
- Bet $150 of your own money on Team B
- If Team A wins: $300 profit from bonus bet - $150 loss on hedge = $150 profit
- If Team B wins: $150 profit from hedge, bonus bet is lost but was free = $150 profit
This strategy guarantees a profit regardless of outcome, but requires access to multiple sportsbooks and careful odds shopping.
3. Focus on Value Bets
If hedging isn't an option, look for bets where you believe the sportsbook has mispriced the odds:
- Compare odds across multiple sportsbooks to identify potential value
- Consider markets with lower vig/juice where odds are more efficiently priced
- Research team news, weather conditions, and other factors that might not be fully reflected in the odds
4. Time Your Bonus Bet Usage
Don't rush to use bonus bets immediately if they have a reasonable expiration window:
- Wait for ideal betting opportunities with favorable odds
- Consider major sporting events that offer more competitive lines due to high betting volume
- But don't wait so long that the bonus bet expires unused
Bonus Bets vs. Other Promotional Offers
How do bonus bets compare to other common promotional offers from sportsbooks?
Bonus Bets
- Return profit only, not stake
- Must be used in one wager (typically)
- No playthrough requirements after bet is settled
- Best used on higher odds markets
- One-time use, simple to understand
Site Credit
- Returns both stake and profit when winning
- Can usually be divided into multiple bets
- Typically needs to be wagered once before withdrawal
- More flexible than bonus bets
- Generally more valuable than bonus bets of same amount
Deposit Match Bonuses
- Come with playthrough requirements (5x-10x typically)
- Takes longer to convert to withdrawable cash
- More complex terms and conditions
- Larger potential value for high-volume bettors
- Requires more strategic planning to maximize
Odds Boosts
- Enhanced odds on specific markets
- No special terms—winnings paid normally including stake
- Usually come with maximum bet limits
- Value varies greatly depending on the quality of the boost
- No expiration concerns (beyond game start time)
Site credit is generally the most valuable promotional offer, followed by deposit match bonuses for serious bettors who can meet the playthrough requirements. Bonus bets offer simplicity and immediate use but with reduced value due to the stake not being returned.
Common Questions About Bonus Bets
Can bonus bets be withdrawn directly?
No, bonus bets cannot be withdrawn as cash. You must place a wager with the bonus bet, and only the winnings (if any) from that wager can be withdrawn.
Do bonus bets expire?
Yes, almost all bonus bets have an expiration date, typically ranging from 7 to 30 days after they are issued. Always check the specific terms.
What happens if my event is canceled or postponed?
If an event is canceled or postponed beyond the bonus bet's expiration date, most sportsbooks will return the bonus bet to your account. However, policies vary, so check the terms and conditions.
What's the difference between a bonus bet and site credit?
The main difference is that when you win with site credit, you receive both the stake and profit, whereas with bonus bets, you only receive the profit. Site credit can also typically be divided into multiple wagers, while bonus bets usually must be used in a single wager.
Can I use a bonus bet on any market?
Generally no. Most sportsbooks impose restrictions on which markets you can bet on with bonus bets, including minimum odds requirements and exclusions for certain bet types. Always check the specific terms for each bonus bet.
Related Betting Guides
Signup Bonus Bets
Learn about the special welcome offers for new customers and how they differ from regular bonus bets.
Deposit Bonuses
Understand how deposit match bonuses work and strategies to clear the playthrough requirements.
Site Credit
Discover the key differences between site credit and bonus bets and which offers more value.