Bonus bets and free bet promotions are common in sports marketing, but their headline appeal can hide conditions that materially reduce the cash you receive. This guide explains how does bonus bet work in plain language and gives a practical, compliance-aware framework you can use before accepting an offer. You will learn to read the key terms that matter, follow a step-by-step conversion approach, use a short decision checklist, and keep evidence that protects you in case of disagreement with an operator. The goal is to help you use promotional stakes as a tactical tool, not a surprise.

Many bonus bets are stake-not-returned, so winnings often exclude the original stake and deliver less cash than a normal bet.

Regulators expect significant conditions like minimum odds and expiry to be displayed clearly where the offer appears.

Save screenshots of the offer and T and C with timestamps; that evidence helps if a dispute arises later.

Quick summary: what to expect when using a bonus bet

Short answer

Bonus bets are promotional stakes that often behave differently from regular cash stakes, and many are settled as stake-not-returned which changes your net payout compared with a normal bet. Industry and advertising rules now require operators to make significant conditions clear, and you should check minimum odds, expiry and any wagering requirements before using an offer; for UK advertising guidance see the ASA advice on free bets and bonuses for what must be shown upfront ASA guidance on free bets and bonuses.

Read the small print before you accept a promotional stake and treat most offers as conditional funds rather than cash you can withdraw immediately. If you want a quick rule, confirm whether the stake itself is returned on settlement and whether there are short expiry windows or market restrictions that will limit where you can place the bet.

Try structured challenges to practice your approach

Read the checklist below and use it before you place any promotional stake to avoid losing value to hidden terms.

See FundedPlays Challenges

What this guide covers

This guide walks through definitions, the lifecycle of a bonus bet, common T and C traps, a decision checklist, step-by-step conversion tactics and practical scenarios you can follow in a live session. It also summarizes the UK and US rules that affect how offers are advertised and what you should expect to see disclosed by operators FTC Guides on the use of the word free, and you can consult the ASA guidance PDF for advertisers Guidance for Advertisers of Free Bets and Bonuses.

Use the step-by-step sections when you have an active offer to hand; keep screenshots and timestamps of the promotion and the T and C so you can confirm what applied at acceptance.

Definition and context: what a bonus bet is and common mechanics

What operators mean by bonus bet, free bet, or risk-free offer

A bonus bet or free bet is a promotional credit or stake that an operator provides subject to terms, and it is not necessarily equivalent to cash you can withdraw without conditions. In many offers the marketing label free bet or risk-free does not mean the operator is returning your stake and it does not mean there are no strings attached, so read the qualifying language closely and look for the statement of how winnings are paid.

Commonly, offers are presented as a promotional stake that can be used in certain markets and within a fixed time window; the offer may require opt-in, account verification or a deposit to activate, and refunds or returns follow the operator rules in the terms.

How a bonus bet differs from a cash stake

One of the biggest practical differences is stake-not-returned settlement, where the operator pays only the profit from a winning promotional stake and does not return the stake amount itself. That settlement method reduces the cash you receive compared with a standard stake-returned bet and changes the expected value calculation when you choose where and how to place the wager CAP guidance on significant conditions.

Other limitations that change practical value include minimum qualifying odds, restricted markets such as excluding certain prop markets, and short expiry windows that force quicker decisions than you might prefer.

Core framework: how bonus bets work step by step

Typical lifecycle of a bonus bet

The lifecycle usually runs like this: you receive or opt into an offer, the operator sets activation rules and eligible markets, you place a qualifying bet according to those rules, the market settles and the operator applies a settlement method, and finally any conversion to withdrawable cash is subject to withdrawal or playthrough rules. Each stage can include conditions that reduce the effective cash you receive.

If an offer uses a stake-not-returned method the operator will credit the account with profit only, so you need a different staking approach than with normal cash stakes. Before placing the bet confirm whether the stake itself will be returned on a win and whether any playthrough or rollover applies.

How much cash will a bonus bet actually deliver compared with a regular stake?

A bonus bet often yields less cash than a regular stake when it is settled as stake-not-returned, and additional conditions like minimum odds, market restrictions and wagering requirements can further reduce withdrawable cash, so always check the specific terms.

How payouts are calculated

With a standard cash stake, a winning return typically equals stake times the odds, often shown as stake returned plus profit. With a stake-not-returned bonus you receive only the profit portion, and that difference makes even identical odds yield a smaller cash amount when the promotional stake is used. When you plan value, phrase the calculation in terms of net cash after settlement and check whether minimum odds or market limits will change the eligible options for placing that bet ASA guidance on free bets and bonuses.

Also confirm whether settled winnings from a promotional stake are subject to wagering or rollover requirements before being eligible for withdrawal, since some offers require you to wager winnings a number of times or meet other conditions first.

Common terms and red flags to watch for in the T and C

Terms that reduce value

Clean infographic comparing stake returned versus stake not returned payouts in two columns with simple icons and short examples how does bonus bet work

Watch for language that explicitly states the promotion is stake-not-returned, includes minimum qualifying odds, restricts eligible markets, requires wagering or playthrough, or imposes a short expiry. Each of these commonly reduces the cash value of a bonus bet and should change your decision to accept or use the offer.

Phrases that sound generous in marketing can be offset by a combination of these terms, so treat the headline offer as preliminary and confirm the significant conditions are presented prominently and clearly where the offer appears CAP guidance on significant conditions.

Ambiguous language to avoid

Avoid offers that use vague terms like risk-free without a clear, conspicuous description of what that means in practice. Marketing that says free or risk-free should be accompanied by immediate and clear qualifying language if material conditions apply, and failing that you should be suspicious of the real value.

Also be wary when terms include complex playthrough math in fine print; if the rollover or wagering requirement is not stated where the offer is advertised the claim may not meet regulatory expectations and it is harder to verify later.

Decision criteria: how to evaluate whether a bonus bet is worth using

Quick checklist for value

To decide quickly, score the offer on these core items: stake treatment, minimum odds, expiry length, eligible markets, wagering requirements, and withdrawal rules. If several items are unfavorable the practical cash value will likely be low and you may be better off declining.

Funded Plays Challenges

See FundedPlays Challenges

Also check whether the operator provides clear opt-out choices for marketing and whether identity verification or deposit requirements change the effective cost of participation. State rules increasingly require conspicuous terms and opt-out options in direct marketing, so make that part of your check before you accept an offer Massachusetts sports wagering advertising rules. For additional tools and resources see Funded Plays.

When to decline an offer

Decline when the wagering requirement is onerous, the eligible markets are too narrow, the expiry is too short to reasonably place a qualifying bet, or the promotional terms are not clearly disclosed where the offer appears. If the marketing uses the word free without immediate, prominent conditions you should be cautious and seek the full terms.

Sometimes declining is the better choice because the time and verification costs outweigh the likely cash return; use the checklist and if in doubt take screenshots and delay acceptance until you can verify the terms.

Step-by-step: converting a bonus bet into withdrawable cash

Preparation before placing the bet

Before you place any bet from a promotional stake read the full terms and conditions and confirm the stake treatment, minimum qualifying odds, eligible markets, expiry and any wagering or playthrough requirements. Save a screenshot of the promotional banner and the T and C with timestamps so you have evidence of what was offered at the time of acceptance.

Next, set a staking plan that reflects stake-not-returned settlement if applicable. Decide how much of the promotional stake you will use on a single selection and whether splitting the stake across markets better manages the expiry and market restrictions.

Placing the bet with maximum value

Select markets and odds that maximize expected net cash, taking into account that stake-not-returned settlements pay only profit. That often means picking slightly higher odds than you would for a cash stake if you aim to maximize immediate cash, but also balance that against the reduced win probability and the offer's minimum odds requirement.

If the promotion allows combinations such as small parlays and those markets give favorable expected cash, consider them only after confirming parlay rules and any restrictions. Always avoid bets that would be voided by simple factors like player substitutions in prop markets if the T and C exclude such events.

Post-settlement steps

After settlement confirm whether the credited amount is subject to further wagering or rollover checks and track playthrough progress carefully. If funds are eligible for withdrawal verify any withdrawal limits, processing times and identity requirements that could affect your timing.

If there is a dispute keep your screenshots and acceptance evidence and contact customer support promptly. If the operator's advertising failed to show significant conditions where the offer appeared you can reference the regulatory expectation that those conditions be provided clearly and prominently when seeking clarification FTC Guides on the use of the word free.

Practical examples and scenarios

Example 1: single-leg bet on favored team

Scenario: you have a promotional stake that is stake-not-returned and you consider placing it on a heavy favorite at low odds. Because the stake will not be returned, a low-odds favorite often produces a small profit that may be less useful after any wagering requirement or minimum withdrawal thresholds are applied. In that case the net cash can be much lower than a similar cash stake would deliver.

To evaluate, compare the profit-only payout against a normal stake-returned calculation and decide if the converted cash meets your minimum target after any playthrough or withdrawal rules.

quick odds to profit conversion for stake-not-returned offers

Use for quick checks before placing a bet

Example 2: small-parlay and market restriction

Scenario: the promotion allows parlays but excludes many prop markets. A small parlay can amplify profit, but exclusions may remove the easiest edges you know. Also check whether minimum leg odds apply and whether a parlay win is treated differently for playthrough requirements. If the operator limits markets the practical choices may not include your best expected-value selections.

Before you build a parlay confirm market eligibility, minimum leg odds and whether a parlay settlement counts as a single qualifying bet or multiple bets for rollover purposes.

Example 3: using minimum-odds offers

Scenario: an offer requires a minimum qualifying decimal odd of 1.5 or equivalent. That minimum protects the operator from customers placing very low-odds bets to extract small guaranteed returns, and it changes which selections you can use. If you pick the lowest allowed odds the profit on a stake-not-returned credit is smallest, so weigh whether a slightly longer-priced selection gives better net cash after settlement.

Use the quick conversion approach in the calculator tool above to compare candidate bets and choose the one with the best net cash outcome within the offer rules.

Typical mistakes and traps users fall into

Misreading stake-return language

One common mistake is assuming the word free means you will receive the stake back on a win. If the terms say stake-not-returned you will not receive the stake amount and your cash will be smaller than expected; always confirm the exact settlement language before placing the bet ASA guidance on free bets and bonuses.

Another trap is assuming a qualifying odds threshold is the same as the odds you would choose for best expected value; the operator threshold is often a floor that changes the set of reasonable bets.

Ignoring playthrough or expiry

Missing a short expiry or ignoring wagering requirements is a frequent error. If an offer expires in 24 to 72 hours you may not have time to place a thoughtful qualifying bet, and wagering requirements can lock funds into play and prevent immediate withdrawal even after a win.

Make it a habit to capture a timestamped screenshot of the offer and the full T and C before you accept, and record any opt-in steps so you can verify what applied in case of later questions.

UK rules and what they require operators to show

Significant conditions and prominent disclosure

In the UK, advertising guidance requires that significant conditions such as stake-not-returned payout, minimum odds, eligibility and expiry be shown clearly and where the offer is advertised so consumers can see them before they accept. That means operators must make these material terms immediately accessible alongside the promotional message ASA guidance on free bets and bonuses, and the Gambling Commission provides additional guidance on advertising and marketing rules Gambling Commission advertising and marketing rules.

For a UK reader, check that the offer's headline is accompanied by prominent conditions and that the T and C are not buried where they would be missed; the guidance on promotional marketing explains which conditions are significant and should be presented upfront CAP advice on significant conditions, and industry commentary on the CAP guidance is available here.

How the ASA and CAP guidance affects advertising

The guidance means operators are expected to avoid ambiguous free or risk-free phrasing unless the true conditions are clearly visible and not hidden in fine print. If you see marketing that claims a free bet but does not show minimum odds, expiry or stake treatment alongside the offer, treat it as incomplete and seek the full terms before accepting.

Keeping evidence of the offer presentation is useful if you later need to argue the operator did not meet the prominent disclosure expectations described in the guidance.

US rules, state examples, and the FTC guidance on 'free' claims

State rules that matter

In the United States several states have adopted rules limiting misleading phrasing like risk-free and require responsible messaging and clear terms for promotional offers; for example, advertising and branding rules in Massachusetts require clear disclosure of material conditions in sports wagering advertising Massachusetts sports wagering advertising rules.

Other states have similar requirements and some specify marketing opt-out options or other responsible marketing measures, so check the rules that apply in your jurisdiction before relying on a promotional claim.

FTC Guides on 'free' and similar representations

The FTC Guides on the use of the word free require conspicuous disclosure of any conditions or costs attached to a free offer, and that principle applies to promotional bonus bets advertised in the US. If a promotion uses the word free but does not clearly disclose stakes, minimum odds or playthrough elsewhere on the ad, the presentation may not meet the Guides expectation for conspicuous disclosure FTC Guides on the use of the word free.

Practically, expect US operators to show the most important conditions early in the ad and to include responsible messaging and opt-out instructions for direct marketing where required by state law.

Industry self-regulation and responsible marketing expectations

AGA Responsible Marketing Code highlights

The industry code discourages the use of misleading terms like risk-free and asks operators to include responsible gambling messaging and to avoid targeting certain vulnerable groups. The code complements regulators by setting expectations for how offers should appear in advertising and in direct marketing.

While the code is not law, many operators follow its guidance as a matter of best practice, and consumers benefit when industry standards require clearer, less misleading promotional phrasing and opt-out choices.

Practical effects for consumers

For consumers the practical effect is that offers should be easier to compare because key conditions are displayed more prominently and direct marketing should include opt-out options where required by state rules. That reduces the chance you will accept a promotion without seeing material limits that affect cash conversion.

If an operator's marketing conflicts with these expectations you can raise the issue with customer support or with the relevant advertising authority in your jurisdiction.

A practical pre-bet checklist you can use

Quick 7-point checklist

1. Confirm stake treatment, is the stake returned on a win or is it stake-not-returned.

2. Check minimum qualifying odds and whether those rules remove your best options.

3. Confirm eligible markets and any excluded bet types.

4. Note the expiry and whether it gives you enough time to place a considered bet.

5. Verify wagering or playthrough requirements and how they affect withdrawal eligibility.

6. Check withdrawal rules, identity verification and any processing limits.

7. Save screenshots of the offer, the T and C and note the timestamp when you accepted.

How to record evidence

Take clear screenshots of the promotional banner and the full terms with timestamps and save any confirmation emails showing opt-in or acceptance. That evidence is often decisive if you need to question how the offer was presented or how the operator interpreted the terms.

Also record whether the offer required a deposit or verification step before it applied, since those actions can change the effective cost of participation.

Closing: safe habits and next steps

Summary of key rules

Always check stake treatment, expiry and wagering requirements before using a bonus bet, and confirm that significant conditions are disclosed where the offer appears. Regulators and industry guidance now expect these material terms to be conspicuous so you should see them before you accept an offer AGA Responsible Marketing Code.

Preserve evidence, use the checklist and treat promotional stakes as conditional funds rather than immediate cash to avoid unpleasant surprises.

Where to double-check terms

Double-check the operator's promotional T and C, the advertising presentation of the offer, and any applicable state rules; see our blog post on how Funded Plays evaluations work for more on verification. If you are in the UK verify that significant conditions are presented alongside the offer as expected under ASA and CAP guidance ASA guidance on free bets and bonuses.

Responsible participation means confirming the facts before you accept and avoiding offers that look generous but are limited by several compounding conditions. For further reading see our blog for related posts.

Do bonus bets give cash I can withdraw immediately?

Not always. Many bonus bets are settled as stake-not-returned and may require wagering before winnings become withdrawable, so check the terms closely.

What should I check first in the T and C?

Confirm whether the stake is returned, the minimum qualifying odds, expiry, eligible markets and any wagering or withdrawal rules.

Can advertising claim a bet is free or risk-free?

Regulators and industry codes require clear, conspicuous disclosure of any conditions, and some jurisdictions restrict misleading 'free' or 'risk-free' phrasing.

Use the seven-point checklist before you accept a bonus bet and preserve screenshots and timestamps so you can verify the offer later. If an offer lacks conspicuous disclosure of significant conditions, treat it as incomplete and seek clarification before betting. Responsible participation means reading terms, comparing offers and avoiding promotions that demand complex playthrough or impose short expiries that give you no time to act.

Quick summary: what to expect when using a bonus bet

Short answer

Try structured challenges to practice your approach

What this guide covers

Definition and context: what a bonus bet is and common mechanics

What operators mean by bonus bet, free bet, or risk-free offer

How a bonus bet differs from a cash stake

How a bonus bet differs from a cash stake

Core framework: how bonus bets work step by step

Typical lifecycle of a bonus bet

How payouts are calculated

Common terms and red flags to watch for in the T and C

Terms that reduce value

Ambiguous language to avoid

Decision criteria: how to evaluate whether a bonus bet is worth using

Quick checklist for value

When to decline an offer

Step-by-step: converting a bonus bet into withdrawable cash

Preparation before placing the bet

Placing the bet with maximum value

Post-settlement steps

Practical examples and scenarios

Example 1: single-leg bet on favored team

Example 2: small-parlay and market restriction

Example 3: using minimum-odds offers

Typical mistakes and traps users fall into

Misreading stake-return language

Ignoring playthrough or expiry

UK rules and what they require operators to show

Significant conditions and prominent disclosure

How the ASA and CAP guidance affects advertising

US rules, state examples, and the FTC guidance on 'free' claims

State rules that matter

FTC Guides on 'free' and similar representations

Industry self-regulation and responsible marketing expectations

AGA Responsible Marketing Code highlights

Practical effects for consumers

A practical pre-bet checklist you can use

Quick 7-point checklist

How to record evidence

Closing: safe habits and next steps

Closing: safe habits and next steps

Summary of key rules

Where to double-check terms

References