Cash Out

Definition:

In sports betting, a cash out option allows bettors to settle a wager before the event is finished. The sportsbook offers a payout based on the current state of the game, which could be more or less than the original stake, depending on how the bet is performing.

They serve two main purposes:

1. Give bettors the ability to secure profits early if their bet is winning.

2. Limit potential losses by exiting a bet that looks likely to fail.

Real-World Example

NFL Game: Buffalo Bills vs. Miami Dolphins

• A bettor places $100 on the Bills moneyline at –120.

• At halftime, the Bills lead 21–10. The sportsbook offers a cash out of $160.

  • If the bettor cashes out, they lock in a $60 profit without waiting for the full game.

  • If they let the bet ride and the Bills win, they’d earn the full profit of about $83.

  • If the Bills lose after halftime, cashing out would have saved them from a total loss.