Free bets: stake returned vs not returned

Free bets are where your profit actually comes from, so it pays to know exactly how they work.

What you'll learn

• the two kinds of free bet, and why the difference matters
• how much of a free bet you can expect to keep as cash
• which odds to use, and what to check in the terms

The examples below are for illustration.

Two kinds of free bet

When a normal bet wins, you get your winnings and your stake back. Free bets come in two kinds, depending on whether the stake comes back too:

• Stake not returned (SNR): you only get the winnings. This is by far the most common kind.
• Stake returned (SR): you get the winnings and the stake, just like a normal bet. These are rarer.

Here's the difference with a £10 free bet at odds of 5.00:

Check the offer terms. If they don't say whether the stake comes back, ask the bookie before placing it.

How much you keep

You usually keep a share of a free bet's value as cash after covering it at the exchange. That share is called your retention.

Here's the same £10 free bet, backed at 6.00 and laid at 6.40, with 2% commission:

As a rough guide:

• Stake not returned: aim to keep 70–80% of the free bet.
• Stake returned: aim for 90% or more.

If the calculator shows you'd keep much less than that, look for closer odds before you place anything.

Why stake-not-returned free bets suit higher odds

With a stake-not-returned free bet, the stake never comes back, so the more of the payout that's winnings, the better. Higher odds do exactly that.

Here's a £10 stake-not-returned free bet at three different odds, with the lay price 0.10 higher each time and 2% commission:

Two things stop you going as high as possible:

• Liability grows fast. You need it all in your exchange account.
• The gap widens. On long-shots, back and lay prices drift further apart, which eats into what you keep.

So the sweet spot is usually mid-range odds where the back and lay prices are still close together. The Oddsmatcher finds close back and lay prices for you.

Stake-returned free bets are different: the stake comes back anyway, so lower odds work fine and need less liability.

Check the terms first

Every free bet comes with rules. Check these before you place it:

• Expiry: most free bets only last a few days.
• Minimum odds: some free bets must go on odds above a set level.
• Which sports or markets: some are football only, or bet builders only.
• Use it in full: you usually can't split a £10 free bet into two £5 bets.
• Stake returned or not: this changes the calculator setting you need.

If a free bet can only go on something you can't lay at the exchange, you can't cover it in the usual way. That's worth knowing before you claim the offer, not after.

Common mix-up: the wrong calculator setting

The calculator works out a different lay stake depending on the type of bet:

• Qualifying bet: your own money, stake returned if it wins.
• Free bet · stake not returned: the usual free bet.
• Free bet · stake returned: the rarer kind.

Pick the wrong one and your lay stake will be off. Using qualifying mode for the £10 free bet above, for example, gives a lay stake of £9.40 instead of £7.84. If the selection then wins, you'd make a small loss instead of about £7.66 profit.

Before you place the lay, check the calculator shows a profit roughly in line with the 70–80% guide. If it doesn't, check the setting first.

Recap

• Most free bets are stake not returned: you only get the winnings.
• Expect to keep 70–80% of a stake-not-returned free bet, and 90% or more of a stake-returned one.
• Check the terms, use close back and lay prices, and choose the right calculator setting.