Bonus Bet
A bonus bet (sometimes called a “free bet” or “promo bet”) is promotional credit issued by a sportsbook to a customer. Unlike cash, a bonus bet typically returns only the profit on a winning wager, not the original stake.
How They Work
The standard structure:
- You receive a $50 bonus bet
- You place it on a wager at +200 odds
- If your bet wins: You receive $100 (the profit on a winning $50 wager at +200). The original $50 stake is not returned — it’s “consumed” by the bookmaker.
- If your bet loses: You receive nothing. The bonus is gone.
This is a meaningful difference from cash. A $50 cash bet at +200 returns $150 ($100 profit + $50 stake). The same bonus bet at +200 returns only $100.
Why It Matters
Bonus bets are one of the primary acquisition tools for US sportsbooks. New customer offers like “Bet $5, get $200 in bonus bets” often drive sign-ups. Understanding how to use them effectively is meaningful EV.
The optimal strategy is to use bonus bets on long-shot odds. Why?
If a bonus bet at +100 wins, you receive $100 on a $100 bonus. If it loses, you lose the bonus.
If a bonus bet at +500 wins, you receive $500 on a $100 bonus. If it loses, you still lose the bonus.
The downside is the same in both cases (the bonus is gone). The upside is much larger at higher odds. So you want to maximize the upside-only side of the bet by taking long-shot odds.
The math: The expected value of a bonus bet equals roughly (1 / (1 + decimal odds)). A bonus bet at +100 (decimal 2.00) has an EV of roughly 50% of face value. The same bonus at +500 (decimal 6.00) has an EV of roughly 83% of face value.
For a $100 bonus bet, that’s the difference between $50 of expected value and $83 of expected value — same bonus, different strategic use.
Where Bonus Bets Come From
Bonus bets are issued in several common scenarios:
Welcome offers. New customer promotions: “First bet up to $1,000 — if it loses, get bonus bets back.”
Risk-free bets. Similar structure: place a real money bet, and if it loses, you get a bonus bet refund of equal value. Note: this is not truly risk-free — the bonus you get back is worth less than the cash you lost.
Daily/weekly promotions. Some books issue bonus bets for hitting certain milestones (placing X parlays per week, betting on a specific event).
Compensation for losses. Books occasionally issue bonus bets as a goodwill gesture for losing streaks, voided bets, or technical issues.
Loyalty rewards. VIP and tiered programs often pay out in bonus bets rather than cash.
Common Pitfalls
Don’t use bonus bets on heavy favorites. A bonus bet at -300 has EV of roughly $25 on a $100 bonus. The same bonus at +300 has EV of roughly $75. The difference is dramatic.
Don’t ignore expiration dates. Bonus bets typically expire 7-14 days after issuance. Forgetting to use them is wasted EV.
Some books restrict eligible bets. Bonus bets may be excluded from certain markets, parlay structures, or promotions. Read the terms before counting on them.
Bonus bets affect arbitrage math. If one leg of an arbitrage bet is placed with a bonus bet, the math changes — the bonus side has different effective odds because the stake isn’t returned. Account for this carefully when arbing with bonuses.
For more on extracting value from promotions, see +EV Betting Explained.