PUB TALK: Why Bookie Cash-Out Is Double-Ripoff

cash out

So I’m sat soaking up some rays over a pint in the week and the lads I’m with are tapping away on their phone’s… “not sure if I should cash-out, what you recon Caan?”

To which I respond; “If you want to get robbed, do it”. With a few confused, unhappy faces looking at me it was time to explain…

Frustratingly, I fear it’s the same for thousands of people with betting accounts – they just don’t understand how much they’re getting ripped off.

Frustration & Censorship

Before I explain, I want you to know the motivation behind the ‘anti-bookmaker’ posts and YouTube video’s.

When I started out on Betfair many moons ago I was clueless. An average Joe, like many punters today… Just like those I was sat outside the pub with, mentioned above.

If somebody has a betting account and see’s it as a way of ‘recreational fun’ that’s fine, but I believe they should at least know what they’re taking part in.

Bookmakers absolutely do not want that to happen. It’s evident from all their advertising they deliberately mislead ‘customers’, further-more I’ve had to verify various social media streams recently as they’ve reported me to be acting as a bookmaker without a licence. Can you believe it?  

On top of that, it wasn’t that long ago I met a producer from a well-known racing channel purely by chance. Talk naturally found its way to betting exchanges as you might expect, where it ended – “we’re not allowed to promote exchanges, our sponsors don’t like it”.

So it’s clear: They don’t like this very blog. Tough shit.

For that very reason – please share this post around!

Related: Understanding the Over-round

Why Bookmakers Cash-Out Is Now Double-Ripoff

So, back to the Cash-Out…

If you use a betting exchange it’s possible to place a bet, then cash-out when the price moves. Winning bets are subject to commission, simple.

If you use a bookmaker’s cash-out this is what happens:

Bet 365

For those of you that haven’t quite spotted what’s wrong with the image above:

  1. I have placed a £50 bet at 3/1
  2. The price of my selection has changed to 9/4 (that’s a bloody big move in price)
  3. The cash-out they are offering me is £50

So despite the price dropping nearly a whole point in my favour. I can only cash out for the amount I initially bet, no profit.

If I had placed the back bat on an exchange I could cash out for £11.54 profit at this stage, with this stake, at these prices.

So where did the £11.54 go? In the bookies pocket (through risk avoided in this case had I cashed out).

It Gets Worse…

If we back-track a second, to our initial bet of £50 at 3/1…

Bet 365 2

Yup. You’re seeing that right!

Despite placing a bet of £50 at 3/1 they are only offering a cash out of £45. So the price hasn’t moved but you’ve just lost 10% of your stake purely by using Cash-Out.

But How Is That Double-Ripoff?

Don’t forget that bookmakers create books at a poor over-round margin in the first place. So just by betting with them your odds would have been bigger on the exchange in the first place, almost every time. On the occasions that it’s not, they would either limit or close you’re account… much like the YouTube videos I’ve created previously.

If you haven’t seen that YouTube video, you can here.

Ever find yourself sat in the pub with your pals having a bet? Share this post with them

Related: How Cash Out Works – 2 Minute Explanation Video

8 thoughts on “PUB TALK: Why Bookie Cash-Out Is Double-Ripoff

  1. I agree. Bookies are a complete rip off.
    The only reason to use them is to take advantage of their promotions such as price boosts and free bets.
    I do this with matched betting, but spend hours searching for the right odds.

    I find bookies odds embarrassing. Don’t know why more people don’t use the exchanges, where the odds are generally higher (even after paying commission). If the bookies odds were higher, they would class you as an arber and start restricting your stakes.

    1. Yes, its mad how they seem to be able to just classify anyone that beats them as ‘abuse’ and restrict or close them down. Still, no sign of it changing…

  2. You have used Bet365 screen-shots and examples here …just consider their ‘cash-out’ offers are much better than most other popular UK/Ire facing online bookmakers

      1. I think he means you get an even worse cashout offer from other bookmakers for the same £50 bet and same price movement.

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