What Is a Sportsbook Early Cash Out?

Regulated sportsbooks are introducing new features to entice and keep customers sports betting spreads throughout the US. A feature referred to as a “sportsbook out” or “cash out” is one of those features that is being offered more often.

Here, we take a look at what a sportsbook “out” is, how to go about using it, and when you should use the option. It’s a relatively simple concept to understand. However, knowing when to use it can be tricky.

Sportsbook Out Defined

A sportsbook out is also known as a cash out or a buyout. It’s a feature that gives sports bettors the option to settle a bet before the competition is over. The bettor accepts a payout that is less than the full potential win. The benefit of accepting the offer is that you will lock in some profit that you can keep regardless of how the event turns out.

Cashing out early can be thought of as a live in-game betting feature because they are typically provided while an event is ongoing and before it ends. A buyout can also be utilized on  long-term futures bets. A bettor may be given the option to secure a profit by cashing out early on their Super Bowl futures bet or on the NFL MVP. 

Example of a Cash Out

Before the 2018 season, the Los Angeles Rams were a -130 favorite to win the NFC West Division. A $130 bet would pay out $230 at the end of the regular season. The bettor stands to make $100 in profit. 

The Rams were 9-1 after 10 games and this bettor was offered a buyout option of $212.07. He could take the $212.07 with about six weeks left to play in the season or wait it out and collect $230 if the Rams won the division. At the time, LA had roughly a 97.3 percent chance (based on schedule and metrics) to win the division.

The question then becomes whether or not the bettor should accept the sportsbook out. The sportsbook has an incentive to offer the cash out option. Should the bettor take it?

Why Take the Sportsbook Out

There are two reasons why bettors should take the cash out. One is that bettors lock in winnings without any risk. You have the Celtics -5.5 but they’ve taken out their starters early in the fourth quarter with a big lead. You’re afraid of the backdoor cover. You decide to lock in a sure profit even though it’s a bit less than your potential winnings.

Cash outs can also be used to protect against a bad loss. You were able to get the Yankees on the road at plus-money. That’s because Gerrit Cole was on the mound going up against a rookie pitcher. But, when Cole leaves in the third inning with an arm issue, you want to cut and run. A sportsbook buyout, if offered, is the perfect solution.

Why Sportsbooks Offer an Out

A cash out offers a give and take between the bettor and the sportsbook. It creates a win-win for each side. The sportsbook in the Rams example above saves roughly $18 by paying the bettor before the season is over. The bettor guarantees a profit of $82.07 by taking the payout. Both sides win. 

Sportsbooks can save money by offering cash out options on bets that are sure to win. In 2018, the Rams went 13-3 and did easily win the NFC West. Bettors that took the payout on that bet made money while the sportsbooks saved by not paying out the full amount.

Taking a Sportsbook Early Cash Out

Keep in mind that not every wager will be eligible for a cash out. Be sure to read up on what is offered and how it functions at the sportsbook you’re using.  Different sportsbooks typically have different rules and restrictions on these types of offers.

When logged into your account, you should be able to see a cash out or buyout option on your betting slips for your active bets. You simply click the cash out button to settle the bet for the amount shown. Once settled, the winnings will show up in your account.