Bonus Bets Explained: How They Work and How to Use Them
Bonus bets are one of the most common sportsbook promotions, and knowing how to use them properly can add real value to your bankroll.
By
Eric Pauly
Feb 8, 2026
7 min read
What Are Bonus Bets?
A bonus bet is a promotional credit issued by a sportsbook that lets you place a wager without risking your own cash. If the bonus bet wins, you receive the profit but not the original stake amount. If it loses, you lose nothing because the credit was not real money. Bonus bets are the most common type of promotion offered by legal U.S. sportsbooks, and nearly every major book uses them as a sign-up incentive or ongoing reward for active bettors.
Over the past two years, I have received and used bonus bets from more than a dozen sportsbooks, totaling over ,000 in promotional credits. The experience taught me that how you use a bonus bet matters far more than simply having one. Most casual bettors waste their bonus bets on long-shot parlays with minimal conversion value. If you are getting into sports betting and want to make the most of every promotion, understanding the mechanics and strategy behind bonus bets is a genuine edge. This guide covers how bonus bets work, how they compare to free bets, and the smartest ways to convert them. If you are new to all of this, our sports betting for beginners guide covers the broader fundamentals.
article Summary
Bonus bets are promotional credits from sportsbooks. You keep the profit if the bet wins, but you do not get the stake back. They differ from cash in that the original credit is always consumed. The smartest approach is to bet bonus bets on plus-money underdogs or use conversion strategies to lock in a guaranteed return.
How Bonus Bets Work
The Basic Mechanics
When a sportsbook gives you a 00 bonus bet, you can use it to place a 00 wager on any eligible market. If your bet wins at +150 odds, you receive 50 in profit. The key difference from a normal bet is that the 00 stake is not returned to you. With a cash bet at +150, you would get back 50 (your 00 stake plus 50 profit). With a bonus bet, you get only the 50 profit. This distinction is critical because it changes the math on which bets are optimal. Understanding how does betting work at a fundamental level helps you see why this stake difference matters for your expected return.
Bonus Bets vs Free Bets
The terms "bonus bet" and "free bet" are used interchangeably by most sportsbooks, but they mean the same thing in practice. Both refer to a promotional credit where you keep the winnings but not the stake. Some older promotions offered "risk-free bets" that would refund your actual cash if the bet lost, but most sportsbooks have transitioned away from that model. Today, if a sportsbook says "free bet" or "bonus bet," assume it works the same way: profit only, no stake return.
Common Terms and Conditions
Bonus bets almost always come with conditions. The most common restrictions include an expiration window (typically 7 to 14 days), minimum odds requirements (often -200 or longer), restrictions on certain bet types, and a one-time use rule (you cannot split a 00 bonus bet into two 0 bets unless the sportsbook specifically allows it). Always read the terms before using a bonus bet. I have seen bettors lose promotions simply because they did not realize the credit expired after a week. Knowing sports betting terms like "wagering requirement" and "minimum odds" helps you navigate these conditions.
Bonus Bet Conversion Strategies
What Is Bonus Bet Conversion?
Bonus bet conversion is the process of turning a promotional credit into guaranteed cash. Because the bonus bet stake is not returned, a 00 bonus bet is not worth 00 in real money. Its actual value depends on the odds you bet it at and whether you can hedge the other side with real cash on a different sportsbook. The goal of conversion is to extract as much real cash as possible from the promotional credit with minimal risk.
The Basic Conversion Method
The simplest conversion strategy involves placing your bonus bet on one side of a market at one sportsbook and betting the opposite side with real cash at another sportsbook. For example, you place a 00 bonus bet on Team A at +300 on Sportsbook A, and you bet 30 on Team B at -300 on Sportsbook B. If Team A wins, your bonus bet profits 00 and your hedge loses 30, netting you 0. If Team B wins, your bonus bet loses (no cost to you) and your hedge profits roughly 7. Either way, you walk away with 0 to 7 in real cash. The conversion rate in this scenario is roughly 70 to 77%, which is a strong return on a promotional credit. Solid bankroll management ensures you have enough cash across accounts to execute these conversions smoothly.
Maximizing Your Conversion Rate
The longer the odds you can place the bonus bet on, the higher your conversion rate. Betting a bonus bet at +500 yields a better conversion rate than betting it at +150 because you keep a larger percentage of the winning amount relative to the hedge cost. The tradeoff is that longer odds require a larger cash hedge on the other side, which requires having sufficient funds at a second sportsbook. In my experience converting bonus bets across 12 sportsbook accounts over two years, I have averaged a 70 to 75% conversion rate by targeting lines in the +250 to +400 range.
When and Where You Get Bonus Bets
Sign-Up Promotions
The largest bonus bets come from new account sign-up offers. Most major sportsbooks offer between 00 and ,000 in bonus bets when you open an account and make your first deposit or place your first bet. These promotions change frequently, so the specific amounts vary. The key is to have a plan for converting the bonus bet before you claim it, rather than receiving it and then scrambling to figure out what to do with it.
Ongoing Promotions and Boosts
Beyond sign-up offers, sportsbooks regularly issue smaller bonus bets as part of ongoing promotions. These include loss-back offers (receive a bonus bet if your first bet loses), weekly reload bonuses, parlay insurance (bonus bet back if one leg of your parlay misses), and referral bonuses. The amounts are typically smaller ( to 0), but they add up over time. I track every bonus bet I receive in a spreadsheet, and in 2025 the ongoing promotions from six sportsbooks totaled over 00 in promotional credits across the year.
Multi-State Bettors
If you travel or live near a state border, you can often claim sign-up bonuses in multiple states. Each state is treated as a separate market by most sportsbooks, so a new registration in a new state qualifies for the sign-up promotion even if you already have an account in your home state. This multiplier effect is one of the most underutilized strategies in bonus bet collection.
Common Bonus Bet Mistakes
Betting Bonus Bets on Heavy Favorites
This is the most common and most costly mistake. If you use a 00 bonus bet on a -250 favorite, your potential profit is only 0. That is a 40% conversion rate, which is poor. The same 00 bonus bet on a +300 underdog profits 00 if it wins, giving you a much higher expected conversion. Because the stake is not returned, the math overwhelmingly favors placing bonus bets on plus-money odds. As a general rule, never use a bonus bet on anything shorter than +200 unless you have no other option.
Letting Bonus Bets Expire
Bonus bets have expiration dates, and sportsbooks will not remind you the day before they vanish. Set a reminder for yourself when you receive a bonus bet. A 00 bonus bet that expires unused is worth exactly /usr/bin/bash. Even a hastily placed bonus bet on a +200 line is better than letting it disappear. Reviewing all the types of bets available helps you find a market quickly when you are working against an expiration deadline.
Not Reading the Terms
Some bonus bets cannot be used on certain markets, have minimum odds requirements, or cannot be combined in parlays. If you place a bonus bet that violates the terms, the sportsbook may void the bet and you lose the credit entirely. Spend 60 seconds reading the fine print before placing any bonus bet. The most common restrictions are minimum odds of -200 or longer and exclusions on certain sports or bet types.
Final Thoughts
Bonus bets are free money if you treat them with a plan. The core principle is simple: the stake is not returned, so bet them on plus-money odds to maximize your conversion. If you can hedge the other side at a second sportsbook, you can turn a promotional credit into guaranteed cash at a 70% or higher conversion rate.
Track every bonus bet you receive, know the expiration dates, read the terms, and always bet them at the longest odds that your hedging bankroll allows. Over the course of a year, the cumulative value from sign-up bonuses and ongoing promotions adds up to hundreds or even thousands of dollars in real profit with minimal risk. That is money you can add to your betting bankroll or simply withdraw as profit from the sportsbooks marketing budgets.
Bonus Bets FAQ
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