10 minutes to read
Content manager, iGaming market researcher
To stand out in the betting business, you need more than good odds. Your platform needs to be packed with features to keep the betting experience fresh and exciting. But how do you take advantage of features that are initially designed for players? Using sportsbook cash out as an example, let's see how to get the best of both worlds.
📌 From players' perspective, cash out allows them to end their bet before a sports contest concludes, which can help lock in a profit or limit potential losses. Bet cash out may not be available for all bets at all sportsbooks, but it's increasingly popular and widely accessible. Online betting cash out is a way for sports bettors to protect themselves against sudden changes in games or matches and secure a profit if they're ahead or recoup some of their stakes to minimize losses if they're behind.
Our research shows that cashing out is great for anxious and casual player segments. These players fear losing and getting too caught up in betting. Cashing out helps them chill because they can avoid losing an entire bet. It's also popular with those looking for a guaranteed win.
There are three main types of cashouts:
Full Cashout
The Full Cashout allows bettors to withdraw their entire bet before the event’s conclusion. This option enables players to lock in profits if their bet is winning or to recover part of their stake if they believe the bet is likely to lose. The amount offered for a full cashout depends on the likelihood of the bet winning.
Partial Cashout
Partial Cashout allows bettors to cash out a portion of their bet while leaving part of the stake in play. This can be particularly useful if a bettor wants to secure some profit or minimize potential losses but still believes there is a chance to win more.
Auto Cashout
With Auto Cashout, bettors can set a threshold at which the bet will automatically be withdrawn. This option is beneficial for those who cannot monitor the event live. Bettors can set a specific amount at which they’d like the cashout to occur, and if the cashout value reaches that amount during the event, the platform automatically processes the cashout.
📌 For operators, sports betting cash out is a competitive advantage and feature that boosts LTV and revenue. It impacts customer satisfaction, aids in risk management, enhances the betting experience, provides operational flexibility, and serves as an additional point in marketing their offering.
There are basically three ways to add a cashout in betting:
Typically, most sportsbook providers only focus on the player’s side when developing this feature. They lack dynamic calculation models and don’t provide tools for analyzing cashout results. With this approach, it’s either unprofitable or complicated to calculate. We’ve gone further and made bookmakers cashout an additional revenue-generating tool.
Operators and platform providers are constantly seeking ways to increase LTV on their platforms. One way to achieve this is by adding features related to bets. The main idea here is to give bettors more sense of control over outcomes to improve their betting experience.
With cashout, bettors make more bets. Cash out sports betting also makes them more confident, as they can adjust their betting strategies in real time. The dynamic nature of live betting with cashout capabilities adds to the excitement of watching live sports events, encouraging bettors to place more in-play bets.
Additionally, bettors more often experiment, explore other strategies, and wager on different sports. The quick fund reuse option afforded by the cashout feature allows bettors to cycle their funds, increasing the volume of bets placed. Moreover, the feature mitigates losses, leading to higher stakes and sustained engagement with the platform.
From the risk management perspective, cashout allows operators to limit financial exposure, balance their books, and encourage continued betting by preventing total loss situations.
When a bet looks likely to win, the sportsbook can offer a cashout amount less than the potential final payout. By doing so, the operator can reduce their liability on that bet. If many players accept cashouts, this can significantly lower the operator’s total payout obligations for events that don’t turn out as initially expected by the odds.
With cashout, bettors often reinvest the winnings in new bets. Reinvesting keeps money within the platform and encourages a healthy rotation of funds, which is beneficial for maintaining liquidity. Moreover, operators can prevent situations where a bettor loses their entire stake, which might discourage them from future betting. Allowing to recover some stakes can encourage bettors to continue betting.
The profitability of Cashout is based on a flexible commission calculation system. The payout amount and withdrawal fee change depending on the bet's probability of winning.
If the likelihood of the bet winning is high, the operator's commission decreases to encourage the player to cash out. This also increases the possibility of the player placing bets on other markets or events, keeping the funds on your platform.
Conversely, if the probability of losing a bet increases, the withdrawal fee also increases as the player seeks to retrieve as much money as possible before it's too late. The operator's commission amount is not displayed in the player's coupon.
To ensure the cashout feature is profitable overall, it's important to conduct AB tests to determine which models perform better.
You can also impel cashouts for specific segments of players or particular sports. For example, you can add cashouts for VIP users betting on football or tennis in a pre-match only.
In GR8 Sportsbook, cashout is more than just a player attraction feature. It is also a reliable source of additional revenue for our clients through commissions.
We have developed a “what if” model to calculate the outcomes of bets without cashing out. We then compare these results with real calculations, considering cashout scenarios.
Cashout bets come in two forms: those where the player receives a portion of the money back in a losing bet and those where the player could have received the total winnings but chose to withdraw a lesser amount before the event concludes.
Additionally, some players use cashouts to cancel a bet, so we conducted a separate calculation for cases where cashouts occurred before the odds changed.
Considering the commission included in cashout calculations, operators generate an average profit margin from 2 to 5%. It's worth mentioning that this profit doesn't just come from cashout bets but from all the bets made on the platform.
Sports betting cashout is more than just a feature for players; it is a direct revenue-generating toolkit, helping operators improve user engagement and manage risk more effectively. By allowing players to cash out, operators can increase the overall volume of bets, encourage active participation during live events, and significantly enhance the player's sense of control and satisfaction with their betting experience.
Looking ahead, the development of cashout features and other advanced functionalities in sportsbooks will likely focus on increasing automation, precision in real-time calculations, and integration with mobile platforms.
Sports betting is changing, and features like cashout are improving to meet today's bettors' needs. With more tools and data, betting companies will profit more and give customers a fresh experience. By using advanced sportsbook features, betting operators can keep up with the latest trends and make sure their business is profitable.
Cashout is not the only feature that assists our clients in earning more on bets without additional investments. Get in touch for more details.
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