What is Cash Out in Sports Betting?

Cash Out Explained in Detail

Cash out allows bettors to lock in profits or cut losses before a bet is fully resolved. If you bet $100 on the Chiefs moneyline at +200 and they are winning 21-7 at halftime, the sportsbook might offer you a cash out of $220, which is less than the $300 you would win if the Chiefs hold on but more than nothing if they blow the lead.

The cash-out value is calculated using the current live odds and always includes a margin for the sportsbook. This means the cash-out offer is always worse than the theoretical fair value of your bet at that moment. The sportsbook is essentially buying your bet back from you at a discount, which is how they profit from the feature.

Cash out is most commonly used on futures bets and parlays. A futures bet on a team to win the championship becomes increasingly valuable as the team advances through the playoffs. Cashing out at various stages allows you to lock in guaranteed profit without waiting for the final result. Similarly, a parlay that has hit several legs but has one remaining can be cashed out for a guaranteed payout.

From a mathematical standpoint, using cash out reduces your expected value because of the sportsbook's margin. However, the psychological and financial certainty it provides has real value. If cashing out a winning futures bet secures a significant, meaningful profit, the peace of mind may be worth more than the theoretical EV you are giving up.