Converting Free Bets to Cash: The Ultimate Matched Betting Guide
Stop gambling away your free bets. Learn how to convert sportsbook bonuses into guaranteed cash profit using matched betting - the same technique professional bettors use to extract thousands from promotions.
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Use our calculator to see exactly how much guaranteed profit you can extract.
Matched Betting Tools
What is Matched Betting?
Matched betting is a technique that converts sportsbook free bets and bonuses into guaranteed cash profit. It works by betting on both sides of an outcome - you "back" a selection to win at a sportsbook and "lay" against it at a betting exchange.
Because you've covered both outcomes, you eliminate the gambling aspect entirely. The free bet value gets converted into real cash at a rate of typically 70-80%.
How Matched Betting Works
Sportsbook (Back)
Use $100 free bet on Team A to win at +200
Exchange (Lay)
Bet $105 against Team A at 3.10 (lay)
Guaranteed Profit (Either Outcome)
≈ $78
78% conversion rate
Back Bet
Betting for something to happen. This is a normal bet at any sportsbook - you win if your selection wins.
Lay Bet
Betting against something happening. Only available on betting exchanges - you win if your selection doesn't win.
Liability
The amount you risk on a lay bet. If the selection wins, you pay out the liability. This is covered by your free bet winnings.
Conversion Rate
The percentage of your free bet you extract as profit. A $100 free bet with 75% conversion = $75 guaranteed profit.
Step-by-Step: Converting a $100 Free Bet
Find a High-Odds Event
Look for events where you can get +200 odds or higher. Higher odds = better conversion rates. MLB moneylines, UFC fights, and soccer are great options.
Example: NBA Game
Pelicans ML: +220 (DraftKings)
Pelicans ML Lay: 3.30 (Exchange)
Place Your Free Bet (Back)
Use the entire free bet amount on the sportsbook at the highest odds available.
Free Bet Placement:
$100 Free Bet on Pelicans ML at +220
Potential Return: $220 (stake not returned)
Calculate Your Lay Stake
Use the Free Bet Converter to calculate exactly how much to lay. The formula accounts for exchange commission.
Free Bet Conversion Formula (SNR):
With our example (5% commission):
Place the Lay Bet on Exchange
Lay the same selection on the betting exchange for the calculated amount.
Exchange Lay Bet:
Lay $67.69 against Pelicans at 3.30
Liability: $155.69 (if Pelicans win)
Guaranteed Profit - Either Outcome!
If Pelicans Win:
- Free bet wins: +$220
- Lay bet loses: -$155.69
- Net Profit: $64.31
If Pelicans Lose:
- Free bet loses: $0 (it was free)
- Lay bet wins: +$64.31 (after 5% comm)
- Net Profit: $64.31
64.3% Conversion Rate = $64.31 Guaranteed from $100 Free Bet
Maximizing Your Conversion Rate
Conversion Rate by Odds
Higher odds generally mean better conversion rates. Here's what to expect:
| Back Odds | Typical Conversion | $100 Free Bet Profit | Rating |
|---|---|---|---|
| -110 (1.91) | 45-50% | $45-50 | Poor |
| +100 (2.00) | 48-52% | $48-52 | Fair |
| +150 (2.50) | 58-65% | $58-65 | Good |
| +200 (3.00) | 65-72% | $65-72 | Very Good |
| +300 (4.00) | 72-78% | $72-78 | Excellent |
| +500 (6.00) | 78-83% | $78-83 | Outstanding |
Best Markets for Conversion
- • MLB moneylines (underdogs)
- • UFC/MMA fight winners
- • Soccer match results (draw or underdog)
- • Tennis match winners
- • Golf tournament outrights
Markets to Avoid
- • Heavy favorites (-200 or worse)
- • Spreads at -110 both sides
- • Totals (usually tight lines)
- • Prop bets (often no exchange market)
- • Live betting (odds move too fast)
Free Bet Types: SNR vs SR
Not all free bets are created equal. Understanding the difference affects how you calculate conversions.
SNR - Stake Not Returned
The most common type. If your free bet wins, you only receive the winnings - the stake is not included.
$100 free bet at +200 wins:
Return = $200 (not $300)
Typical conversion: 65-80%
SR - Stake Returned
Less common but more valuable. If your free bet wins, you receive both the stake AND the winnings.
$100 free bet at +200 wins:
Return = $300 ($100 + $200)
Typical conversion: 85-95%
Matched Betting Without a Betting Exchange
Don't have access to a betting exchange? You can still convert free bets using a second sportsbook, but expect lower conversion rates (50-65%) due to the vig on both sides.
Two-Sportsbook Method:
- 1.Place free bet on underdog at Sportsbook A
- 2.Bet the favorite at Sportsbook B with real money
- 3.Use our Hedge Calculator to find optimal stakes
Note: This method has lower returns because you're paying vig to both sportsbooks instead of just exchange commission. Only use this if you can't access a betting exchange.
5 Common Matched Betting Mistakes
1. Using Low Odds
Converting a free bet at -110 odds yields only 45-50% conversion. Always hunt for +200 or higher odds to maximize your guaranteed profit.
2. Forgetting Exchange Commission
Exchange commission (typically 5%) reduces your lay bet winnings. Always include this in your calculations or use our calculator.
3. Insufficient Exchange Balance
You need enough funds to cover the liability. For a $100 free bet at +200, expect to need $150-200 in your exchange account.
4. Mismatched Selections
Make sure you're backing and laying the exact same outcome. Team A ML at the sportsbook must match Team A ML at the exchange.
5. Waiting Too Long
Free bets often expire. Don't wait for 'perfect' odds - a 70% conversion today beats a worthless expired free bet tomorrow.
Frequently Asked Questions
Is matched betting legal?
Yes, matched betting is completely legal. You're simply placing bets on both sides of an outcome - there's nothing illegal about this. However, sportsbooks may limit or close your account if they detect you're only using promotions without regular betting.
What conversion rate should I aim for?
A good conversion rate is 70-80% of the free bet value. For a $100 free bet, you should aim to extract $70-$80 in guaranteed profit. Higher odds (+300 or more) typically yield better conversion rates.
Do I need a betting exchange for matched betting?
A betting exchange makes matched betting much easier and more profitable. However, you can also use a second sportsbook to bet the opposite side, though the margins will be higher and profits lower.
How much money do I need to start matched betting?
You'll need enough to cover the lay liability on the exchange, which is typically 1-3x the free bet amount depending on the odds. For a $100 free bet at +200 odds, expect to need around $200-300 in your exchange account.
What's the difference between SNR and SR free bets?
SNR (Stake Not Returned) free bets only pay out the winnings - you don't get the stake back. SR (Stake Returned) free bets pay both the stake and winnings, making them more valuable. Most sportsbook free bets are SNR.
Can sportsbooks ban me for matched betting?
Sportsbooks can limit or close your account for any reason. While matched betting itself isn't against terms of service, consistently only using promotions without normal betting activity may trigger account restrictions.
Ready to Convert Your Free Bets?
Stop gambling away your sportsbook bonuses. Use our Free Bet Converter to calculate exactly how much guaranteed profit you can extract from every free bet.
Responsible Gambling
Sports betting should be fun, not a financial burden. Only bet what you can afford to lose. If gambling stops being enjoyable, please seek help.
National Problem Gambling Helpline: 1-800-522-4700