What Are Bonus Bets and How do They Work?

Many of the top sportsbooks in the United States provide bonus bets to customers as a part of welcome offers or promotional deals. DraftKings, FanDuel, BetMGM, BetRivers, and many other platforms currently offer all new users an opportunity to earn bonus bets when they first sign up. 

In addition, sportsbooks that have customer loyalty programs generally offer a wide range of bonus bets as prizes. But what exactly is a bonus bet, and how does one work?  Continue reading to learn all about bonus bets, how to claim them, helpful tips for using them, and much more!

Bonus bets, also known as bet credits or bonus money, are a type of site credit offered by various online sportsbooks. These allow customers to place wagers on sporting events without using their money. Customers typically need to deposit or place a real-money wager to earn bonus bets, so they are not "free bets" or "risk-free bets," which used to be the former terminology for this type of bonus. However, they still provide a valuable opportunity for users to bet without risking their cash.

Different Terms Used

• Promotional Bets: Special offers or promotions where bettors receive bonus bets as part of a marketing campaign or promotional event.
• No-Deposit Bets: A type of bonus bet that doesn't require the bettor to deposit any money into their account. It's typically used as a sign-up incentive.
• Matched Bets: The sportsbook matches the bettor's deposit or initial bet with an equivalent amount in bonus bets, effectively doubling the betting power.

When a customer wins a wager made with a bonus bet, they receive the winnings in real money but not the original bonus bet amount. 

For example, a sportsbook might offer $200 in bonus bets if you sign up and make a $10 deposit. If you use $100 of those bonus bets on an underdog with +200 odds and they win, you'd make a $200 profit. However, you wouldn't receive the initial $100 bonus bet amount, just the winnings. If your bonus bet loses, the bonus amount disappears, leaving you with only the money you initially deposited.

It's important to understand that winnings from a bonus bet might not be immediately available for withdrawal. Many promotions come with wagering requirements. For example, a $100 bonus might have a 10x wagering requirement, meaning you'd need to bet a total of $1,000 before any funds could be withdrawn from your account.

By offering bonus bets, sportsbooks aim to provide a low-risk introduction to their platform, encouraging users to engage more frequently with their betting services while offering an exciting way to increase their winnings potentially.

Listed below are a few tips that you may find helpful when claiming and using your bonus bets with your sportsbook.

• Read the Terms & Conditions: Before claiming or using your bet credits, make sure you have a thorough understanding of the rules and requirements for the promotional offer in which you are participating. The bonus bets may only be available for use on certain types of wagers (straight bets, futures, etc.) or when odds requirements are met (e.g., -110 or longer).
• Maximize Your Benefits: Every opportunity to earn bonus bets and bet credits is different. For example, certain promotional deals offer greater amounts of bonus bets for larger initial wagers and first deposits. As a result, you will always want to be aware of how you can maximize your benefits and, depending on your risk tolerance and betting style, act accordingly.
• Place Bets Strategically: It is always important to make sure that you use your bonus bets strategically based on the terms and conditions of the promotional offer. For instance, some sportsbooks will provide $200 in bonus bets if you win your first wager on the platforms. When claiming these offers, it may be a good idea to figure out the odds requirement and place your qualifying wager on the lowest possible odds to increase your chance of success.