What is Cash Out in Sports Betting?
Should you ever use it? (Usually no)
5 min read
The Quick Answer
Cash out lets you settle a bet early for a guaranteed payout—but it's usually a bad deal.
Sportsbooks build margin into cash out offers. You're essentially buying overpriced insurance. For +EV bettors, the optimal strategy is almost always to let bets ride to their natural conclusion.
How Cash Out Works
Example: Chiefs -7 Pre-Game Bet
Original bet: $100 on Chiefs -7 at -110
Potential win: $190.91 total ($90.91 profit)
Halftime: Chiefs lead 17-10
Cash out offer: $145 (locks in $45 profit)
The sportsbook calculates this offer based on:
- Current live odds (Chiefs now more likely to cover)
- Time remaining in the game
- Their profit margin (typically 5-10%)
Why Cash Out is Usually -EV
The house always builds in an edge. If the "fair" cash out value is $150, they'll offer you $145.
Cash Out Problem
• You're paying a premium for certainty
• The offer has built-in margin against you
• Over time, accepting cash outs costs you money
Let It Ride
• Your original bet had edge (hopefully)
• Variance is part of betting
• Long-term EV maximized by not cashing out
When Cash Out Might Make Sense
There are rare situations where cash out can be justified:
Bankroll Management
If a winning bet represents a dangerously large portion of your bankroll, cashing out to reduce variance can be prudent.
Information Edge
If you know something the book doesn't (injury not yet announced, etc.), the cash out offer might be mispriced in your favor.
Personal Circumstances
If you need the money now for something important, the utility of guaranteed cash might outweigh the -EV.
Cash Out vs. Hedging
If you want to lock in profit, hedging is often better than cash out.
Why Hedging Can Be Better
• You control the hedge—shop for best odds
• No built-in sportsbook margin on your side
• Can choose exactly how much to hedge
• Often gets you closer to "fair value" than cash out
Learn more: What is Hedging? | Hedge Calculator
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Frequently Asked Questions
What is cash out in sports betting?
Cash out lets you settle a bet early before the game ends. You can lock in a profit (if winning) or cut your losses (if losing). The sportsbook calculates an offer based on current odds and remaining time.
Should I use the cash out feature?
Usually no. Cash out offers are typically -EV because books build in a margin. You're essentially buying insurance at a bad price. The mathematically optimal strategy is usually to let bets ride.
Why is cash out usually a bad deal?
Sportsbooks don't offer cash out to help you—they profit from it. The offer is always slightly worse than the "fair" value. Over time, using cash out costs you money compared to letting bets settle naturally.
When might cash out make sense?
Cash out can make sense when: you have a large bet that represents too much of your bankroll, you have new information the book doesn't know, or your personal circumstances require the guaranteed money.
What is partial cash out?
Partial cash out lets you settle part of your bet early while leaving the rest active. For example, cash out $50 of a $100 bet to lock in some profit while keeping $50 in play.