How Did Risk-Free Bets Work and Why Did They Change?
Betting bonuses are all the rage in the US sports betting industry. There was a time when some offers were referred to as risk-free bet promotions, however these names have changed due to regulatory requirements.
Now referred to as ‘first bet offers’ or ‘no sweat bets’ for example, these operate in the same way ‘risk-free bets’ previously did, but they are simply under different names.
This guide clarifies what risk-free bets were, what they are now, and explains how you can make the most of them.
What Were Risk-Free Bets and What Are They Called Now?
The basic premise of risk-free bet offers was simple. With a risk-free bet promotion, your sportsbook would refund the wager up to a certain dollar amount if you lost the first real-money qualifying wager you placed. The refund would typically come in the form of site credit or a bonus bet.
Most major sportsbooks have now moved away from ‘risk-free bet language’ in favor of other terms as part of responsible gambling initiatives. You might see similar promotions referred to as the following:
- No Sweat Bets
- First Bet Offers
- First Bet Resets
- First Bet On (Sportsbook)
The names of these promotions are changing all the time, but one thing is for certain: you won’t see risk-free bet language used at any legit sportsbook operator moving forward.
Risk-Free Bets Were Never Truly Risk-Free
The most important thing to understand about risk-free bets is they were never truly risk-free. When you put down your own money, there’s always a chance you won’t get it back.
Don’t fall into the trap of thinking that a risk-free bet means you’ll get your money back if you lose.
Rather than protect you from losing, what a so-called risk-free bet promotion did was give you a second chance at winning.
A second chance is a wonderful thing. But of course, there’s also the possibility that you lose both your first bet and your bonus bet, which means you’ve now lost your initial stake. That’s why you should never bet any money you can’t afford to lose.
There’s another important caveat to be aware of. At some sportsbooks, you could end up with a net loss even if you win your second chance bet. Watch out for sportsbooks that only pay out the winnings on bonus bets, not the stake. In that circumstance, winning a bonus bet on a favorite would result in a net loss on your first deposit. So, if you lose your first wager, you’d need to hit on odds longer than +100 with your next bet just to end up with a profit.
Again, risk-free bet promotions were never entirely risk-free, and that remains the case no matter what they’ve been renamed to.
Why Did Risk-Free Bets Get Renamed?
Regulatory scrutiny forced operators to pivot away from the risk-free descriptions associated with many of their promotions. This kind of language was rightfully seen as misleading and harmful to responsible gambling practices.
We have seen fines handed out to specific operators in the past for violations, especially in newly legalized sports betting markets. Risk-free bets were commonly presented as a sign-up bonus and are therefore used to attract new customers, and you’ll still see that today, just under a different name.
Sportsbooks offer eye-catching dollar amounts in risk-free bet promotions and market them heavily. That’s because there is next to no risk for the sportsbook itself. The house always has a built-in edge!
Just remember, there are numerous gambling problem resources out there if you need assistance, including the National Problem Gambling Helpline (1-800-GAMBLER).
Understanding the Terms & Conditions
Here comes your first warning to read the terms and conditions. Why? Because each sportsbook issues site credit refunds and bonus credits differently.
Some sportsbook promo codes treat bonus bets like cash, meaning you’ll keep both the stake and the profit if your subsequent bet wins. Others will only pay out the winnings, not the stake. Furthermore, some books won’t allow you to break down the bonus bet amount into a series of smaller wagers – you’ll only get a one-shot deal.
Disclaimer: Promotions change frequently. Always read the fine print before laying down your hard-earned cash! It is crucial to understand the terms and conditions attached to your bonus before laying down any money.
Terms will vary from sportsbook to sportsbook, but common bonus terms to watch out for include:
- Odds restrictions
- Rollover requirements
- Time limits
Understanding how your sportsbook treats payouts on bonus bets or site credit is paramount when considering any promotions. In most cases, only the winnings from the bonus bet are returned to your account. You won’t get back the bonus bet stake, which will equal the amount you originally wagered with your own money. Therefore, bet within your comfort zone and never risk any cash you can’t afford to lose!
Rest assured, most bonuses are easy to understand once you grasp the basic rules. For more information, check out our detailed guide on how sports betting bonuses work.
Were Risk-Free Bets Worth It?
Risk-free bets were an excellent opportunity to make a selection at longer odds than you might otherwise consider, and that remains true under their new names. If you lose the first time, you’ll get a second chance. Mathematically, your probability of winning one of two bets is higher than your likelihood of winning a single bet.
As a general rule of thumb, any promotion is better than no promotion. It’s called a bonus for a reason. However, we must again caution that risk-free bets were never entirely risk-free, and that remains true under their new labels. Further, risk-free bet offers didn’t net you anything if you won the initial qualifying bet.
Experienced bettors who want the highest potential gain from a promotion should look towards deposit match bonuses or matched bonus bets, as these offer value whether your first bet wins or loses. New customers who just want to give sports betting a try without the risk of losing their own money should seek a no deposit bonus.
For more advice on choosing the best sportsbook bonus for you, check out our in-depth guide.
How to Make the Most of Your Bet Credits
The first step to taking full advantage of “risk-free” bet promotions is depositing the maximum amount. If your sportsbook offers up to $500 “risk-free” with their welcome bonus, deposit $500.
Then, make sure you know which betting markets are available and note any odds restrictions or other terms and conditions. Being aware of this eligibility information is key to ensuring your first bet qualifies for the promotion. Note also that if you make multiple selections on your bet slip, it will be the first selection you make that qualifies for the bonus offer.
Determining the best strategy for using bet credits ironically depends on your appetite for risk.
You could swing for the fences on a long underdog with the comfort of knowing that you’ll get a second chance if your bet loses. Or, you can play it safe by finding the shortest odds allowable, typically -200 or -250. Hopefully, your bet wins, and you can take the payout straight to the bank.
If your first bet loses, you’ll get another shot at picking a winner. At most sportsbooks, you’ll only get to keep the winnings from this second bet, not the stake. Before placing your bonus bet, you’ll have to decide to either cut your losses or aim for a net gain. This decision effectively determines whether your second bet should be on a favorite or an underdog.
The table below shows your overall profit/loss if you started with an unsuccessful $500 first bet then won your second bet of the same amount. The table assumes you will not get the stake back on your bonus bet.
| Odds | Winnings on $500 Bonus Bet | Profit/Loss on Original $500 Deposit |
|---|---|---|
| -200 | $250 | -$250 |
| -150 | $335 | -$165 |
| -110 | $455 | -$45 |
| +100 | $500 | $0 |
| +150 | $750 | $250 |
| +200 | $1000 | $500 |
| +250 | $1250 | $750 |
The only way to guarantee yourself an actual risk-free profit is to find an arbitrage situation. Doing so involves betting on both sides of a wager at competing sportsbooks to ensure you come out ahead. Arbitrage betting is a more advanced strategy that requires time to master and is frowned upon by most sportsbooks. We do not recommend it for those new to gambling.
States That Offer No Sweat Bet Promos
Several top US sportsbooks currently offer bonus bet promotions. The best part is you do not need to enter promo codes to activate most of these. New sports bettors in the following states should be able to access one or more of these offers:
- Arizona
- Colorado
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Michigan
- Massachusetts
- Nevada
- New Jersey
- New York
- North Carolina
- Pennsylvania
- Tennessee
- Virginia
- West Virginia
The Bottom Line
Risk-free bet promotions were never completely risk-free, and that remains true under their more accurate names. This is gambling, after all – but getting a second chance is better than not getting one. Just remember that as with any sportsbook bonus, it’s essential to pay attention to the terms and conditions before committing your money.
Sports Betting Dime is here to help you make informed choices and find an online sports betting site that’s right for you. Check out our extensive set of guides to sportsbook bonuses to grow your bankroll.
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