A free bet is a promotional wagering token, not withdrawable cash. The terms determine where it can be used, when it expires, whether the token stake is returned after a win, and whether a separate cash bet is needed to qualify. DraftKings' betting glossary uses the comparable term "Bonus Bet" and likewise defines it as a token used in place of money.
How Free Bets Work
When an operator awards a token, it appears separately from the withdrawable cash balance. At placement, the user selects the token as the stake source. The bet receipt should identify the token and the promotion rules that apply.
The key distinction is what happens after a win. Under "stake not returned" (SNR) terms, only the odds-derived winnings are credited as cash. Under "stake returned" (SR) terms, the settlement also credits an amount corresponding to the token stake. Never infer SNR or SR from the phrase "free bet" alone.
Stake Not Returned (SNR) vs Stake Returned (SR)
Here is how the two settlement types compare for the same illustrative 10 pound token at decimal odds of 4.00:
| Token type | Token used | Odds | Cash credited after a win |
|---|---|---|---|
| Stake Not Returned (SNR) | 10 pounds | 4.00 | 30 pounds |
| Stake Returned (SR) | 10 pounds | 4.00 | 40 pounds |
With an SNR token, the cash credit is (4.00 - 1) x 10 = 30 pounds. With an SR token at the same odds, it is 4.00 x 10 = 40 pounds. These figures are conditional on the selection winning and do not include any separate qualifying-bet result.
If the token bet loses, the token produces no return. A promotion can still have a cash cost or loss through its qualifying bet, so "free" does not mean the full offer is risk-free. The operator's current token and qualifying terms, not the label, define that exposure; DraftKings' glossary likewise distinguishes a bonus-bet token from money.
The True Value of a Free Bet
Because of the stake-not-returned condition, a free bet is worth less than its face value. The expected value depends on the odds at which you use it.
For an SNR token of amount S, decimal odds o, and your independently estimated win probability p, the token's expected cash credit before any qualifying cost is:
Expected cash credit = p x S x (o - 1)
Suppose S = 10, o = 4.00, and p = 0.25. The expected cash credit is 0.25 x 10 x 3 = 7.50 pounds. If the estimated probability or available price changes, so does the result. Comparing tokens only by face value or odds ignores those inputs and any cost of qualifying. This follows the ordinary definition of expected value: multiply each possible outcome by its probability and sum the results.
How Offers Differ
A token can be awarded after account opening, after a qualifying wager, through an account-specific promotion, or without a preceding cash bet. Those labels do not establish value by themselves. Compare the full sequence of cash deposits, qualifying stakes, token credits, expiry rules, and withdrawals.
Common Terms and Conditions
Depending on the offer, conditions may include:
- Minimum odds. The token or preceding cash bet may need to meet a stated price.
- Qualifying action. The award may depend on a cash bet settling under specified conditions.
- Expiry. An unused token may be removed at a stated date or time.
- Market restrictions. Some sports, events, bet types, or payment methods may be excluded.
- One-token and combination rules. The terms may restrict splitting, combining, cashing out, or using another promotion. Betfair's sportsbook rules provide one current example of token and cash-out exclusions; another operator's rules may differ.
Practical Football Example
Assume a hypothetical offer awards two 10 pound SNR tokens after a qualifying cash bet settles. The exact qualifying result is excluded from this token calculation and would need to be included when assessing the whole promotion.
You use one free bet on Arsenal to beat Wolves at odds of 2.20. If Arsenal win, your return is (2.20 - 1) x 10 = 12 profit. The 10 free bet stake is not returned. If Arsenal lose, you lose nothing, since it was a free bet.
Realistic Expectations
A token can have positive expected cash credit and the overall promotion can still produce a loss once the qualifying bet, restrictions, errors, or expired tokens are included. Calculate the complete sequence using the expected-value method, and do not place an additional cash bet merely to avoid losing a token.
Past performance does not guarantee future results.
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Related resources
Continue with Matched Betting: What It Means in Betting for the next part of this topic, or return to Betting Glossary: Every Betting Term Explained in Plain English to compare the other guides in this collection.
Continue learning
- Next guide: Half-Time/Full-Time
- Related guide: Handicap Betting
- Go deeper: Free Bets Explained
Assumptions and limitations
Free bet is a promotional label, not cash and not one universal product. The SNR and SR calculations assume the token is accepted at the shown price and that all qualifying, expiry, withdrawal, market, and maximum-return conditions are met. DraftKings' glossary gives one current bonus-bet example; the live promotion terms control.
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