Free Bet
Brief Definition
A free bet is a sports-betting promotion that operators use to incentivise player acquisition, engagement, retention, or reactivation by allowing players to place bets, permitted by the promotion terms, without using their own funds.
Detailed Explanation
Free bets are single-use promotional bets that operators can offer to players. They can have a fixed value or be calculated as a percentage of the player’s committed real-money amount, such as a deposit or stake.
Under the most common profit-only model, if the free bet wins, the player receives only the profit, not the value of the free bet itself. However, some promotions may apply different payout rules. If the bet loses, the player receives nothing, but does not lose any of their own money.
The promotion’s terms determine how the free bet can be placed. They may specify eligible sports and markets, minimum odds, the validity period, permitted bet types, and whether the payout is credited as cash or bonus funds. The terms may also apply a wagering requirement before bonus funds become withdrawable.
SOFTSWISS enables operators to configure free bets by setting the campaign rules in the Sportsbook back office. Operators can define who receives the free bet, how much it is worth, where it can be used, how long it remains valid, and how winnings are credited.
Formula
When decimal odds are used, and the promotional stake is excluded from the payout, the potential payout can be calculated as follows:
Potential payout = Free bet value × (Decimal odds − 1)
One is subtracted from the decimal odds because the promotional stake is not returned as part of the payout.
Calculation Example
A player receives a EUR $20 free bet and places it on an outcome with decimal odds of 3.00. The promotional stake is excluded from the payout.
- Free bet value: EUR $20
- Decimal odds: 3.00
- Potential payout: EUR $20 × (3.00 – 1) = EUR $40
If the bet wins, the player receives a payout of EUR $40. The original EUR $20 promotional stake is not added to this amount.
Whether the EUR $40 is credited as withdrawable cash or bonus funds depends on the promotion’s terms.
Examples and Use Cases
Welcome Free Bet
Operators may use welcome free bets to encourage new players to make their first deposit or place their first sports bet. This can help convert registered users into active sportsbook players.
Sporting Event Promotion
During a major sporting competition, free bets may be made available for selected matches or markets. This can help increase engagement around high-interest fixtures and priority betting markets.
Cashback Reward
Operators may return part of a qualifying betting loss as a free bet instead of cash. The credited amount can then be used to place another eligible bet under the promotion’s terms.
No-Risk Free Bet
A No-Risk Free Bet is a promotional mechanic that allows operators to reduce the perceived risk of placing a qualifying bet. Players place a bet using their own funds, and if the bet loses, the qualifying stake is refunded according to the promotion terms. This promotion is commonly used to encourage first-time betting activity or support acquisition campaigns.
AllWin Free Bet
To help maximise the perceived value of welcome offers or other campaigns, an operator might use an AllWin Free Bet to reward players with a promotional free bet that pays the full return from a winning bet. If the qualifying bet wins, both the promotional stake and the winnings are credited as withdrawable cash, unless the promotion terms specify otherwise.
OnlyWin Free Bet
An OnlyWin Free Bet is the most common free bet configuration used in sportsbook promotions. Unlike an AllWin Free Bet, the promotional stake is not returned when the bet wins. This structure helps operators balance player incentives with promotional cost control, making it suitable for welcome offers, retention campaigns, and event-based promotions.
