KEY TAKEAWAYS
A free bet is a wager that a sportsbook funds instead of the player. It usually arrives as bonus bet funds, and the key question is what happens when it wins. With a stake not returned (SNR) free bet, only the profit is paid. With a stake returned (SR) free bet, the stake is paid as well. A $20 SNR free bet at decimal odds of 3.00 pays $40 if it wins, while an SR free bet at the same odds would pay $60.
That difference changes what a free bet is worth. An SNR free bet is worth less than its face value, and how much less depends on the odds it is placed at. Other terms, such as minimum odds and expiry, shape its value too.
This guide explains how free bets are credited and settled, how to calculate what one is worth, and which terms to check. It also answers a common question: how do bonus bets work? Every offer and team below is hypothetical and used only to show the arithmetic. Terms vary between sportsbooks and states, so the offer’s own terms are what count.
How Free Bets and Bonus Bets Work
A free bet, often called a bonus bet, is credited to an account after a qualifying action, such as a first bet or a deposit. It is placed like any other wager, but the stake comes from the sportsbook. The funds usually cannot be withdrawn, so the only way to turn them into cash is a winning bet.
Settlement is where free bets differ most. In an SNR free bet, a winning bet pays the profit and the stake is not returned. In an SR free bet, a winning bet pays the stake and the profit. A losing free bet pays nothing under either type, and in both cases the funds are used up once the bet settles.
Most free bets carry conditions. A minimum odds rule sets the lowest price at which the free bet can be placed. An expiry date sets how long the credit lasts. Some free bets must be used in one bet, while others can be split across several. These are covered in more detail in bonus terms and conditions.
Free bets are also credited in different shapes. A first-bet offer may return a losing bet as a bonus bet, and a bet $10, get $30 offer may deliver several free bets of set sizes. In every case, the offer’s own terms state the amounts, the settlement type and any extra conditions.
What a Free Bet Is Worth: The Formulas
Odds are written in several formats. This guide uses decimal odds (D) and shows the American format in brackets. The conversion is simple.
where:
A = the number in the American price, such as 200 for +200 or 110 for −110. So +200 is 3.00, and −200 is 1.50.
The payout of a winning free bet depends on its type.
where:
F = the face value of the free bet; D = the decimal odds it is placed at.
The value of the free bet is its expected payout. At fair odds, with no sportsbook margin, the chance of winning is about 1 ÷ D, so:
where:
value = the average amount a free bet is worth, not a prediction for any single bet.
In practice, the sportsbook’s margin lowers the true chance of winning below 1 ÷ D. For example, a −110 / −110 market has a theoretical hold of 4.55%. The fair-odds values above are therefore best read as upper bounds.
Worked Example: A Fictional $20 Free Bet
Example offer (fictional): Sportsbook A credits a $20 free bet, stake not returned, with a minimum odds of 2.00 (+100) and a 7-day expiry. The market is Team A vs. Team B, and the example is hypothetical.
Step 1. The player places the free bet on Team B at 3.00 (+200). If it wins, the payout is $20 × (3.00 − 1) = $40.
Step 2. At fair odds, the chance of winning is about 1 ÷ 3.00 ≈ 33.3%.
Step 3. Value ≈ $20 × (3.00 − 1) ÷ 3.00 ≈ $13.33, which is about 66.7% of the $20 face value.
Step 4. If the same free bet were stake returned, a win would pay $20 × 3.00 = $60, and the value would be about $20.
In words: on average, the SNR free bet is worth about $13.33 at these odds, and the SR version about $20. These are fair-odds estimates, so the real values are lower once the margin is counted. Note that a single bet either pays $40 or nothing, so the result of one bet says little about the average. At the minimum odds of 2.00, the same SNR free bet would be worth $20 × (2.00 − 1) ÷ 2.00 = $10.
Variations: Odds, Offer Shapes and Settlement
Higher odds keep more of an SNR free bet’s value, because a larger share of the payout is profit. The table shows a fictional $20 SNR free bet placed at different odds, at fair odds.
| Decimal odds | American odds | Payout if it wins | Value at fair odds | Share of $20 face value |
|---|---|---|---|---|
| 2.00 | +100 | $20.00 | $10.00 | 50% |
| 3.00 | +200 | $40.00 | $13.33 | 66.7% |
| 5.00 | +400 | $80.00 | $16.00 | 80% |
An SR free bet at fair odds is worth about its full face value at every price, $20 in this case. Higher odds also mean a lower chance of winning, so the value comes from rarer, larger payouts.
Offer shapes vary as well. Suppose a fictional bet $10, get $30 offer delivers three $10 SNR free bets. Placed at 3.00 each, the three are worth about $30 × (3.00 − 1) ÷ 3.00 = $20 at fair odds. The qualifying $10 bet is a normal wager with its own cost, which this estimate leaves out.
Second-chance offers work differently. If a fictional $50 first bet loses, a $50 bonus bet is credited. Placed at 3.00 as an SNR free bet, it would be worth about $50 × (3.00 − 1) ÷ 3.00 ≈ $33.33 at fair odds, and only if the first bet loses.
Common Catches and Mistakes
Assuming the stake comes back is the most common mistake. In an SNR free bet, a $20 free bet at 3.00 pays $40, not $60.
Ignoring minimum odds can leave a free bet unplaceable at the price the player had in mind. A minimum of 1.50 (−200) rules out shorter prices.
Missing the expiry means the free bet can disappear unused.
Assuming a free bet can be split is another trap. Some must be used in a single bet.
Overlooking a rollover on winnings matters on some offers, where winnings from the free bet carry their own requirement, as explained in how wagering requirements work.
Finally, a free bet is not free money, and it is never a reason to bet more than planned. Gambling is best treated as paid entertainment within a budget.
Checklist: Reading a Free Bet Offer
Before deciding anything, read the offer’s terms page and look for these points:
- Whether the free bet is stake not returned or stake returned
- The minimum odds, and the format they are written in
- The expiry date, and when the clock starts
- Whether the free bet can be split across several bets
- Whether winnings carry a rollover or a cashout cap
- Which markets and events are eligible
- The size and number of free bets credited
To check a value, convert the odds to decimal, subtract 1 for an SNR free bet, multiply by the face value, and divide by the decimal odds.
Related Concepts and Next Steps
A free bet is one of several sportsbook promotions, and the same questions apply to the others: how does it pay, and what conditions sit behind it? The guide to how wagering requirements work covers the rollover that some offers attach to winnings.
Bonus mathematics goes further into comparing offers, including how a free bet compares with a boosted price. Terms vary by offer, so the offer’s own terms are what count, and an estimate is only as good as its assumptions.
Because a free bet can tempt a player to stake more than planned, it helps to set a budget first and to treat gambling as paid entertainment.
Frequently Asked Questions