'Cash Out' is a feature that online betting companies offer to their players. This feature allows players to settle bets prior to the end of the game. In reality, the betting company offers an amount to 'buy' the bet.
In general terms, this option is used in two cases. When your bet is close to being a winning one or when the bet is close to being a losing one.
If your bet is close to winning, the betting software proposes you an amount. Of course, smaller than the original profit.
If your bet is close to losing, the 'Cash Out' amount offer is smaller than the original stake. This gives you the chance not to lose all your stake if your final prediction isn't confirmed.
The 'Cash Out' feature is available from the time you placed the bet and used in most cases in live betting.
Example - How does 'Cash Out' works
Let's look at an example to make it clear.
In the game Arsenal vs Liverpool, you bet €100 for Liverpool win, odds of @2.50. So your target is to make a profit of €150.
At halftime, the score is 0:1 for Liverpool. The software offers you the option to 'Cash Out' €180 and to settle your bet as won. At this point, you can accept the proposal and make €80 of profit. No need for you to involve further with the game.
Or, you can leave your bet open, to win the full amount (€250) if Liverpool will win the game.
In the same game, if Arsenal wins 1-0 in halftime, your bet will have fewer chances to win. The software may offer you a bid of €30 to close your bet. This gives you the ability to not lose all your money (€100).
Why do betting sites offer 'Cash Out' feature?
So, you wonder, why online betting sites give you such a chance to cut your losses?
The main reason is that the players love this feature. It makes betting more entertaining. It enables the player to 'close' his bet, so he can bet on another game.
In this way, bookmakers raising the players' interest in In-Play betting.
A second reason is that through the 'Cash Out' button, companies have more profit. It may sound strange to you, but there is an explanation.
In the first example, with the score at 0-1 for Liverpool, your company offer a refund of €180.
At this point, their odds formula understands that the real chances for Liverpool to win are more than 70%. So, the system offers the betting odds according to this formula.
This means that in 70% or more of the cases, they would have to pay the full amount. And, there is a 30% or lower of the cases, which they wouldn't pay anything.
This option has created several discussions among players. Some of them use it as a betting strategy. Others like to secure their bets with in-play betting. They like to be in a slow profit and not get annoyed by late goals.
But there are players who believe that by using this option, the term of value betting is dead.
The truth lies someplace in the middle. This option can become a good weapon in the hands of the experienced player. For example, if the team you selected wins 2-0 in the 80th minute, it makes no sense to 'Cash Out'. Because odds are in your favor and all you will do is to narrow the long profit from betting.
In another case, if the team you selected received a red card, the result has more risk involved. It would be better to accept the offer of the company and close your bet.
Let us know your opinion in the comments for this betting option if you use it and your experiences.