You’ve seen the ads. They’re everywhere. Usually, it’s a retired quarterback or a fast-talking comedian shouting about "house money" or a "risk-free" opportunity to turn ten bucks into a thousand. But when you actually log into FanDuel, DraftKings, or BetMGM, you’re greeted with a balance that isn’t quite cash. It’s a bonus bet.
It’s not real money. Not yet, anyway.
If you try to withdraw it immediately, you'll find the "Withdraw" button is grayed out or the balance simply doesn't show up in your bankable funds. That’s because a bonus bet is essentially a line of credit that only exists within the ecosystem of that specific sportsbook. You can use it to place a wager, but the mechanics of how you get paid—and what happens if you lose—are fundamentally different from a standard cash bet. Honestly, most casual bettors flush these down the toilet because they don't understand the "stake not returned" rule.
Let's break down the actual math of how these things work and why the sportsbooks are so eager to hand them out.
Why a Bonus Bet is Not the Same as Cash
When you bet $50 of your own hard-earned cash on the Kansas City Chiefs to win at +100 odds (even money), and they win, you get $100 back. That’s your original $50 stake plus $50 in profit. Simple.
A bonus bet doesn't work like that.
If you use a $50 bonus bet on those same Chiefs at +100, you only get the $50 profit. The original "stake"—the $50 credit the book gave you—vanishes into the ether. It’s a one-time use token. This is the single most important thing to understand about sports betting promotions in 2026. Because you don't get the stake back, the actual "value" of a bonus bet is always lower than its face value.
Think of it like a gift card that can only be used on a single purchase, and any leftover change on the card is instantly deleted.
The Playthrough Requirement Trap
Sportsbooks aren't charities. They are massive, data-driven corporations. When they give you a bonus, it almost always comes with strings attached, often referred to as "rollover" or "playthrough" requirements.
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While the US market has largely moved toward a "1x playthrough" (meaning you only have to bet the bonus once to turn winnings into cash), some international books or offshore sites might require you to bet that amount five, ten, or even twenty times over before you can touch the money. You might think you've won big, but if you're stuck in a 10x rollover loop, the house knows that statistically, you’ll probably lose it all back to them before you meet the requirement.
The Different Flavors of "Free"
Not every promo is built the same. You'll usually encounter three main types of bonus bet structures, and knowing which one you're looking at determines whether it’s actually a good deal.
The "Bet and Get"
This is the gold standard for most players. You bet $5 of your own money, and they give you $150 in bonus bets regardless of whether your $5 bet wins or loses. It’s the lowest barrier to entry.
The "No Sweat" or "First Bet Insurance"
This one is trickier. You bet $1,000 of your own money. If you win, great—you get your cash and the promo is over. If you lose, the book gives you $1,000 back... but as a bonus bet. You haven't actually been "refunded." You’ve just been given a second chance to win your money back, but now you’re playing with the "stake not returned" disadvantage.
The Odds Boost Bonus
Sometimes a book will give you a bonus bet that must be used on a specific market, like "LeBron James to score 25+ points." These are often traps designed to steer you toward high-margin parlays where the house has a massive edge.
Mathematical Optimization: How the Pros Use Bonus Bets
If you’re just betting for fun, do whatever you want. Put it on a 10-leg parlay and dream of a new boat. But if you want to be smart, there is actually a "correct" way to use a bonus bet.
Because you don't get the stake back, you maximize your "Expected Value" (EV) by betting on longshots.
It sounds counterintuitive. Most people want to "lock in" a win by betting their bonus on a heavy favorite like a -300 team. Don't do that. The math proves that the higher the odds, the more of that bonus bet's face value you "capture."
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For example:
- Betting a $100 bonus on a -200 favorite yields a projected value of about $33.
- Betting a $100 bonus on a +300 underdog yields a projected value closer to $60 or $70.
Serious "matched bettors" actually use software to bet the bonus on one side of a game at one sportsbook and "lay" the bet (bet against it) on an exchange or another book. By doing this, they can "convert" a bonus bet into roughly 70-80% of its value in cold, hard cash regardless of what happens in the game. It’s tedious, but it’s how people make a living off these promotions.
The Expiration Date Nobody Reads
The biggest heartbreak in sports betting isn't losing a last-second wager. It’s logging in on a Saturday morning to find your $200 in bonus bets has vanished.
Most bonus bets have an expiration date.
Usually, it's seven days. Sometimes it’s 14. Rarely is it longer. If you don't use it, you lose it. No exceptions. No "I forgot." The sportsbooks count on a certain percentage of people—what they call "breakage"—simply forgetting to use their credits.
Reading the Fine Print: What to Look For
Before you click "opt-in," you need to scan the Terms and Conditions (T&Cs) for a few specific phrases. This isn't just legal jargon; it's the rules of the game.
- Minimum Odds: Some books won't let you use a bonus bet on a massive favorite. They might require the odds to be -200 or longer (e.g., -110, +150).
- Market Restrictions: Often, you can't use these on "Round Robins" or certain "Teasers."
- Maximum Winnings: It’s rare in the regulated US market, but some shadier books cap how much you can actually win from a bonus bet. If you hit a +5000 longshot, you want to make sure you actually get paid the full amount.
Common Misconceptions and Reality Checks
People often ask, "Is this a scam?"
No, it's not a scam, but it is a marketing cost. Think of it like a free appetizer at a restaurant. They give you the mozzarella sticks because they know once you're in the door, you're going to buy a steak, three beers, and a dessert. The bonus bet is designed to build a habit. They want you checking the app every morning. They want you feeling the dopamine hit of a win so that when the bonus money runs out, you’re ready to deposit your own.
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Also, be aware of "Bonus Abuse" flags. If you only ever bet when there is a promotion and never use your own cash, the sportsbook will eventually "limit" you. They'll stop giving you promos and might only let you bet a few dollars at a time. They are looking for "recreational" players, not "predatory" ones.
Actionable Strategy for Your Next Bonus Bet
Instead of just throwing it away, follow this protocol to actually stand a chance of keeping the money.
First, stop using them on heavy favorites. You are essentially throwing away half the value of the credit. Look for something in the +300 to +500 range. You won't win as often, but when you do, the payout actually matters.
Second, check your expiration dates immediately. The second that bonus hits your account, set a calendar reminder.
Third, diversify. If you have a $100 bonus bet, see if the book allows you to split it into four $25 bets. This lowers your "variance"—the fancy gambling term for luck. Betting it all on one game is a binary outcome: you either have money or you have zero. Splitting it gives you more chances to see a return.
Finally, treat it like a tool, not a gift. The moment you stop seeing it as "free money" and start seeing it as a "mathematical advantage to be maximized," you're already ahead of 90% of the people using the app.
The industry is changing fast. In 2026, regulators are looking closer at how these are marketed, specifically the use of the word "free." You might see them rebranded as "Bet Credits" or "Bonus Tokens." Regardless of the name, the mechanics remain the same: it's a chance to win cash without the risk of losing your own, provided you play by their very specific, very lopsided rules.
Next Steps for Smart Betting:
- Check your active "Promotions" tab right now to see if you have any expiring credits.
- Compare "Bet and Get" offers across at least three different sportsbooks to see which has the lowest playthrough requirement.
- Avoid using "No Sweat" bets on your first-ever deposit unless you are comfortable with the "refund" being in non-withdrawable credit.