Cash out, good idea or scam?
Many sports bettors get lost in their various strategies due to online betting platforms.
Indeed, these platforms introduced a feature called "Cash Out" a few years ago, which is supposed to allow bettors to "secure" their gains based on the scenario of the sporting event they've bet on.
But beware, often the Cash Out is a trap, and bookmakers ensure that they come out as winners in this "exchange"... Let's explain why!
What is Cash Out?
Cash Out is a tool developed by betting sites that allows you to secure a potential gain or loss at a specific moment before the end of a sporting event.
It works by calculating the value of your bets in real-time based on live market odds. With a simple click, you can withdraw your bets placed on a match.
This is a boon for some who struggle to see their various bets through to the end and prefer to secure part of their profits.
Let's take an example:
Imagine a tennis match between Carlos Alcaraz and Novak Djokovic at the Miami Open. If you bet €100 on Alcaraz with odds of 2.00, your potential gain would be €200.
If Alcaraz wins the first set, you could decide to withdraw part of your bet, getting an immediate partial payment. This cancels the rest of the bet, and you could receive around 50% of your initially expected winnings (€150 instead of €200).
This reduction in winnings is due to the risk that needs to be managed during the remainder of the match, during which Alcaraz could lose his advantage and Novak Djokovic could win.
While this might seem appealing in theory – getting money and making a profit even if the match isn't over yet, and maybe even if the bet is losing – be cautious about this "strategy"...
How Does Cash Out Work in Sports Betting?
Cash Out is calculated using real-time odds and the potential gain of your bet. For this, a simple formula exists: divide your potential gain by the live betting odds of your player/team.
If we take the previous example, let's say that after winning the first set, Alcaraz's live odds are 1.30 on Pinnacle. Applying the formula mentioned above would give us: €200 / 1.30 = €153.85
If the offered Cash Out is €150 as mentioned earlier, then the offer is "correct" since this withdrawal would result in a loss of only €3.85 compared to the real value of your bet.
However, if the Cash Out is around €140, the loss would start to become significant, and you would be better off letting your bet ride, even if it ends up losing.
Don't forget! The key in betting is to maintain a long-term view of your results, and accepting regular losses, however small, will result in a significant drop in your ROI.
By accepting a too-small Cash Out, you're giving the bookmaker the opportunity to take a second margin from you, in addition to the one they've already taken when you placed your bet.
To be honest, Cash Out generally has a highly negative impact on your bankroll and profitability.
Remember that when bookmakers seem to be giving you a "gift," there's inevitably something off behind it.
You're playing AGAINST them, not WITH them.
But then, when is Cash Out appropriate?
As soon as an event takes place during a match and betting sites adjust their odds accordingly, it's likely already too late.
So yes, sometimes your team might be trailing by 2 goals, or they received a red card, and you think recovering €2 from your initial €100 bet is "better than nothing." But that might not necessarily be the right way to think.
In sports, anything is possible, and you need to think mathematically. Do they have a chance to come back? Yes. What's the percentage chance of that happening? Well, that's determined by the live odds, and you should absolutely rely on them.
Overall, it's almost always advised not to use Cash Out. The option is worth considering only when you have information that the betting site hasn't yet incorporated into its odds (which is very rare).
When Can Cash Out Be Beneficial IN YOUR BETTING STRATEGY ?
To know when Cash Out might be beneficial, you must absolutely watch the match live.
First example: You've bet on a tennis match. Your player lost the first set and he seems greatly diminished in the second, and you sense an withdraw is imminent.
In this case, you can take the Cash Out if, as it will guarantee you less losses than if the player in question withdraws and the bet is lost.
Second example: You predicted a football team's victory, it's 1-1, and in the last few seconds, you realize the opposing team is playing to preserve the score. In this precise case, taking the Cash Out can be a way to avoid a straight loss due to your bet failing.
Bookmakers: Fierce Enemies of Bettors
As we explained earlier in this article, remember that bookmakers are there to make money, often at the expense of bettors.
If all betting platforms offer Cash Out, it's for a specific reason!
They give themselves the opportunity to regain more margin by playing on the emotional aspect of bettors who see themselves winning big and prefer to secure something rather than lose it all.
Many bettors struggle to detach themselves from their emotions when deciding to place a bet. And yet...
This is probably one of the main reasons that might one day make you an excellent bettor...
No gambling authority has forced bookmakers to offer the Cash Out option. If nearly all of them do, it's simply because it's a PROFITABLE strategy for them!
And you, do you regularly use Cash Out?
Wednesday, August 30, 2023
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