Free Bets Explained: How They Work and How to Use Them
Free bets are one of the most common promotions offered by legal US sportsbooks. Whether you are signing up for a new account or receiving a reward as an existing customer, free bets give you the chance to place a wager without risking your own money. But how they actually work, and what you walk away with when you win, is not always straightforward.
This guide breaks down exactly what free bets are, how the different types work, how to claim them, and the strategies that help you get the most value from every free bet you receive.
What Is a Free Bet?
A free bet is a promotional credit from a sportsbook that lets you place a wager without using your own cash. If your free bet wins, you receive the profit from the wager. If it loses, you lose nothing because you never risked your own funds.
Free bets are one of the primary tools sportsbooks use to attract new customers and keep existing bettors engaged. From the sportsbook's perspective, the cost of offering a free bet is relatively small compared to the lifetime value of acquiring a customer who continues betting on the platform. In the competitive US sports betting market, where dozens of licensed operators compete for bettors in each state, free bets have become a standard part of every sportsbook's promotional toolkit.
When you receive a free bet, it typically appears as a selectable option in your bet slip. Instead of wagering cash from your account balance, you select the free bet token to fund your wager. The mechanics from there depend on the type of free bet, which we cover in the next section.
It is important to understand that free bets are not the same as cash in your account. There are several key distinctions:
- Free bet vs. cash balance: A free bet can only be used to place a wager. It cannot be withdrawn directly. Your cash balance is real money you can withdraw at any time.
- Free bet vs. bonus cash: Some sportsbooks offer bonus cash or site credit that works differently from free bets. Bonus cash may require a certain amount of wagering (rollover) before you can withdraw it, while free bets are typically one-time-use credits.
- Free bet vs. odds boost: An odds boost enhances the payout on a specific bet but still requires you to wager your own money. A free bet replaces your stake entirely.
One terminology note: starting in 2023, many US sportsbooks began rebranding "free bets" as "bonus bets" or "bet credits" to comply with responsible gaming guidelines from state regulators. If you see "bonus bet" on a sportsbook platform, it works the same way as a free bet. The stake is not returned, and you keep only the profit from a winning wager. Throughout this guide, we use "free bet" as the general term since it remains the most widely recognized.
If you are new to wagering, our sports betting basics guide covers the foundational concepts you will need before diving into promotions.
Types of Free Bets
Not all free bets are created equal. The most important distinction is whether the stake is returned as part of your winnings.
Stake-Not-Returned Free Bets
This is the most common type of free bet offered by US sportsbooks. When you win, you receive only the profit, not the original free bet amount.
Example: You have a $50 stake-not-returned free bet and place it on a team at +150 odds.
| Outcome | Calculation | You Receive |
|---|---|---|
| Win | $50 x 1.50 = $75 profit | $75 (profit only) |
| Lose | Free bet is forfeited | $0 |
With a cash bet at the same odds, a win would return $125 ($75 profit + $50 stake). With a stake-not-returned free bet, you only get the $75 profit. This is why the real value of a free bet is less than its face value.
Stake-Returned Free Bets
Less common but more valuable, these free bets return the full amount, including the stake, if you win. They work almost identically to a regular cash bet.
Example: You have a $50 stake-returned free bet at +150 odds.
| Outcome | Calculation | You Receive |
|---|---|---|
| Win | $50 x 1.50 = $75 profit + $50 stake | $125 |
| Lose | Free bet is forfeited | $0 |
Risk-Free Bets and Bet Insurance
Some sportsbooks have offered promotions marketed as "risk-free bets." These work differently: you place a bet with your own money, and if it loses, the sportsbook refunds your stake as a free bet (usually stake-not-returned). Regulatory changes have led many sportsbooks to move away from "risk-free" language, but the underlying mechanic still appears under names like "bet insurance" or "second chance bet."
Matched Free Bets
Matched free bets tie the free bet amount to your first deposit or first wager. For example, "Bet $50, Get $50 in Free Bets" means you must place a qualifying wager of $50 with your own money before the sportsbook credits a $50 free bet to your account.
How to Claim a Free Bet
Free bets come from several sources, and the claiming process varies depending on the type of promotion.
Sign-Up Free Bets
The most generous free bet offers typically come with new account registration. Every major legal US sportsbook offers some form of welcome bonus, and many include free bets as part of the package. The typical process is:
- Create a new account at a licensed sportsbook
- Complete identity verification
- Make a qualifying deposit (if required)
- Place a qualifying bet (if required)
- Free bet credits appear in your account
You can compare current welcome offers across licensed sportsbooks on our sportsbook reviews page.
No-Deposit Free Bets
Some sportsbooks offer free bets just for signing up, without requiring any deposit at all. These are typically smaller amounts ($5 to $25) but represent genuine risk-free value since you never put your own money in. Our no deposit bonus guide covers how to find and use these offers.
Deposit-Match Free Bets
These promotions match a percentage of your first deposit with free bet credits. A "100% deposit match up to $500 in free bets" means depositing $500 would give you an additional $500 in free bet credits. These credits are often released in increments as you continue betting on the platform.
Loyalty and Existing Customer Free Bets
Once you are a registered customer, sportsbooks continue offering free bets through:
- Loyalty programs and rewards tiers: Regular betting earns points that can be redeemed for free bets
- Promotional events: Free bets tied to major sporting events like the Super Bowl, March Madness, or the NBA Finals
- Re-engagement offers: If you have not bet in a while, sportsbooks may send free bet offers to bring you back
- Referral bonuses: Earn free bets when friends sign up using your referral link
Wagering Requirements and Restrictions
Free bets always come with terms and conditions. Understanding these restrictions is essential for using your free bets effectively.
Minimum Odds Requirements
Most sportsbooks require you to use free bets on wagers at minimum odds, typically -200 to -300 (American odds). This prevents you from placing a free bet on an extreme favorite with near-certain odds and a tiny payout. Some promotions set the minimum even higher at -150 or +100 (even money).
Always check the specific minimum odds requirement before placing your free bet. If you place a wager that does not meet the minimum odds threshold, the sportsbook may reject the bet or the free bet token may not be available as a funding option in your bet slip.
Expiration Windows
Free bets do not last forever. Most sportsbooks set expiration windows of 7 to 30 days from the date the free bet is credited. If you do not use it within that window, the free bet disappears.
| Typical Expiration Window | Common With |
|---|---|
| 7 days | Weekly promotions, loyalty rewards |
| 14 days | Sign-up bonuses, event promotions |
| 30 days | Large welcome offers, deposit matches |
Single-Use vs. Divisible Free Bets
Some free bets must be used all at once as a single wager. Others can be divided into smaller bets. For example, a $100 free bet might be issued as four $25 free bet tokens that you can use on separate wagers. Divisible free bets are generally more valuable because they give you more flexibility in how you deploy them.
Sport and Market Restrictions
Certain free bet promotions restrict which sports or markets you can bet on. A free bet tied to an NFL promotion might only be usable on NFL games, or a sportsbook might exclude certain bet types like live betting or player props from free bet eligibility.
Maximum Winnings Caps
Some free bets cap the maximum amount you can win. A $50 free bet with a $500 maximum winnings cap means that even if you bet on a massive longshot and it wins, your payout is limited to $500 regardless of the actual odds.
Push and Void Rules
If your free bet lands on a push (a tie where no side wins), the outcome depends on the sportsbook. Some operators return the free bet token so you can use it again, while others grade the push as a loss and the free bet is forfeited. Check the terms for your specific promotion before placing a free bet on any market where a push is possible, such as point spreads with whole-number lines.
Withdrawal Restrictions
Winnings from free bets are usually credited as cash that can be withdrawn. However, some promotions attach a playthrough or rollover requirement, meaning you must wager the winnings a certain number of times (for example, 1x or 3x) before you can cash out. Always read the terms to understand if there are withdrawal conditions attached.
Strategy: How to Get the Most from Free Bets
Not all free bet strategies are equal. The math behind stake-not-returned free bets changes the optimal approach compared to betting with cash.
Why Longer Odds Are Better for Free Bets
With a stake-not-returned free bet, you only keep the profit. This means the free bet's expected value increases as you bet at longer odds. Here is why:
With a $100 free bet on a -200 favorite, a win pays $50 in profit. With the same $100 free bet on a +200 underdog, a win pays $200 in profit. The probability of winning each bet is different, but the expected value calculation favors longer odds for stake-not-returned free bets.
| Odds | Win Probability (Fair) | Profit if Win | Expected Value |
|---|---|---|---|
| -200 | 66.7% | $50 | $33.33 |
| +100 | 50.0% | $100 | $50.00 |
| +200 | 33.3% | $200 | $66.67 |
| +400 | 20.0% | $400 | $80.00 |
As the odds get longer, the expected value of a stake-not-returned free bet increases. The sweet spot for most bettors is in the +200 to +400 range, where you balance a reasonable chance of winning with meaningful profit.
Hedging with Free Bets
If you receive a large free bet and want to guarantee some return, you can hedge by placing a cash bet on the opposite outcome. Here is a concrete example:
You have a $100 stake-not-returned free bet. You place it on the Celtics moneyline at +300 on Sportsbook A. Then you place a $220 cash bet on the Lakers moneyline at -275 on Sportsbook B.
| Outcome | Free Bet Result | Cash Bet Result | Net Profit |
|---|---|---|---|
| Celtics win | +$300 profit | -$220 loss | +$80 |
| Lakers win | $0 (free bet lost) | +$80 profit | +$80 |
Regardless of the outcome, you walk away with $80 in guaranteed profit from a $100 free bet, a 80% conversion rate. Hedging works best with larger free bets where the guaranteed profit is meaningful. For a $10 free bet, the effort and cash required to hedge may not be worthwhile. For a $200 or $500 free bet, hedging can lock in a substantial guaranteed return.
Use Free Bets Before They Expire
This sounds obvious, but one of the most common mistakes is simply forgetting about a free bet until it expires. Set a reminder in your phone when you receive a free bet so you use it before the deadline.
If you are trying to decide which sportsbook to use, our guide on how to choose a sportsbook can help you compare platforms based on more than just promotions.
Converting Free Bets to Withdrawable Cash
A common question is how to turn free bet credits into real money you can withdraw. Since free bets themselves cannot be withdrawn, the only path to cash is winning a bet.
Free Bet Conversion
Free bet conversion is the process of turning a free bet into guaranteed cash by hedging. Rather than simply placing a free bet and hoping it wins, you place the free bet on one side of a market and a cash bet on the other side, locking in a profit regardless of the outcome. The conversion rate, expressed as a percentage of the free bet's face value, depends on the odds available. A good free bet conversion returns 70-80% of the free bet amount as guaranteed profit. For example, converting a $100 free bet at a 75% rate means you walk away with $75 in real cash no matter what happens.
The True Value of a Free Bet
A $100 stake-not-returned free bet is not worth $100. Its actual expected value depends on the odds you bet at. As shown in the strategy section, a $100 free bet used at +200 odds has an expected value of about $66.67 assuming fair odds. In practice, because the sportsbook's margin reduces fair odds slightly, the realistic value of a free bet is roughly 60-75% of its face value.
Step-by-Step Example
Here is how to maximize a $50 stake-not-returned free bet:
- Check the minimum odds requirement. Most sportsbooks set this at -200 or -300. Plan to bet above this threshold.
- Find a bet in the +200 to +400 range on a sport and market you feel informed about.
- Place the full free bet amount on your selected wager. Do not split it if it is a single-use free bet.
- If you win, the profit is credited as withdrawable cash. Check if any playthrough requirements apply before withdrawing.
- If you lose, you have lost nothing since it was a free bet. Move on and look for the next promotion.
Realistic Expectations
Do not treat free bets as guaranteed income. A $50 free bet at +300 odds gives you a 25% chance of winning $150 and a 75% chance of winning nothing. Over time, claiming every free bet available across multiple sportsbooks adds up, but any individual free bet might not pay out.
Common Mistakes to Avoid
Even experienced bettors can mishandle free bets. Here are the most frequent errors:
Letting free bets expire. This is the number one mistake. Every expired free bet is money left on the table. Track your free bets and their expiration dates.
Betting on heavy favorites. With stake-not-returned free bets, wagering on a -500 favorite returns very little profit relative to the free bet size. You are mathematically better off betting at longer odds.
Ignoring the terms and conditions. Minimum odds requirements, market restrictions, and expiration dates all affect how you can use a free bet. Read the fine print before placing your wager.
Confusing free bets with bonus cash. If your account shows "bonus funds" or "site credit," it may work differently from a free bet. Bonus cash sometimes requires rollover before withdrawal, while free bet winnings are often immediately withdrawable.
Using free bets as a reason to chase losses. Free bets should be treated as a bonus, not as a recovery tool. If you are on a losing streak, a free bet is not the solution to getting back to even.
Not checking for free bets across multiple sportsbooks. If you have accounts at several licensed sportsbooks, check each one regularly for free bet offers. Many bettors only use one platform and miss free bet promotions available at their other accounts. Loyalty rewards, seasonal promotions, and re-engagement offers mean there are frequently free bets waiting to be claimed across your accounts.
Free Bets vs. Other Sportsbook Promotions
Sportsbooks offer several types of promotions beyond free bets. Understanding the differences helps you evaluate which offers provide the most value.
| Promotion Type | How It Works | Your Risk | Best For |
|---|---|---|---|
| Free bet | Wager with sportsbook credit; keep profit if you win | None (your own money is not at stake) | Trying a new sportsbook, betting on underdogs |
| Deposit bonus | Bonus cash added to account after deposit, subject to rollover | Must deposit real money; rollover required | High-volume bettors who will meet rollover naturally |
| Odds boost | Enhanced payout on a specific bet; you still wager your own money | Full stake at risk | Bets you would place anyway at standard odds |
| Profit boost | Percentage increase applied to your winnings on a qualifying bet | Full stake at risk | Maximizing return on high-confidence picks |
| Risk-free bet / bet insurance | Refund of stake (as free bet) if your first bet loses | Stake refunded only as free bet, not cash | First wager on a new platform |
For a broader look at which sportsbooks are available in your state and what promotions they offer, check our guide to sports betting legality by state.
Frequently Asked Questions
Do I keep the stake on a free bet?
It depends on the type of free bet. With stake-not-returned free bets (the most common type in the US), you only receive the profit from a winning bet. The free bet stake itself is not included in your payout. With the less common stake-returned free bets, you receive both the profit and the stake amount.
Can I withdraw free bet winnings immediately?
In most cases, yes. Winnings from free bets are typically credited as cash to your account and can be withdrawn right away. However, some promotions attach a playthrough requirement that means you must wager the winnings a certain number of times before withdrawing. Always check the specific terms of the promotion.
What happens if my free bet loses?
Nothing. The free bet credit is simply removed from your account and you lose nothing of your own money. This is the primary advantage of free bets. You had the chance to win real money with zero personal risk.
Are free bets really free?
Yes, in the sense that you do not risk your own money on the wager. However, sportsbooks offer free bets as a marketing tool to acquire customers. They expect that most people who claim free bets will continue betting with real money afterward. The free bet itself costs you nothing.
Do free bets expire?
Yes. Nearly all free bets come with an expiration window, typically ranging from 7 to 30 days after they are credited to your account. If you do not use the free bet within that window, it is forfeited permanently. Always note the expiration date when you receive a free bet.
What are the best odds to use with a free bet?
For stake-not-returned free bets, longer odds generally provide better expected value. Betting at +200 to +400 is a good range that balances a reasonable chance of winning with a meaningful payout. Avoid using free bets on heavy favorites like -300 or -500, as the small profit does not justify using a valuable promotional credit.
Can I use a free bet on a parlay?
Most sportsbooks allow free bets on parlays, though there may be minimum odds or minimum leg requirements. Using a free bet on a parlay can be a smart strategy because parlays naturally offer longer odds, which maximizes the value of a stake-not-returned free bet.
What is the difference between a free bet and a bonus bet?
They are the same thing. Starting in 2023, many US sportsbooks rebranded "free bets" as "bonus bets" to comply with state responsible gaming guidelines. The mechanics are identical: you place a wager using the promotional credit, and if you win, you keep the profit but not the stake. If you see "bonus bet" on a sportsbook app, treat it exactly like a free bet.
Are free bets worth it?
Yes. Even though a free bet is worth less than its face value (roughly 60-75% for stake-not-returned free bets), you are getting something for nothing. A $50 free bet costs you $0 and gives you a real chance at winning cash. Over time, consistently claiming free bets across multiple sportsbooks can add meaningful value to your betting bankroll with zero additional risk.
Do all sportsbooks offer free bets?
Nearly every licensed US sportsbook offers free bets in some form, whether as part of a welcome bonus, ongoing promotions, or loyalty rewards. The size and terms of free bet offers vary significantly between platforms. Visit our sportsbook reviews to compare current offers.
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