Free Bets: Stake Returned vs Stake Not Returned
Why a $25 sportsbook free bet is usually not economically equivalent to $25 cash.
The key question is whether the promotional stake itself is returned on a winning bet. With a common stake-not-returned token, only the profit component is credited, so face value and cash value are different.
Stake-not-returned example
A $25 token at decimal 3.00 produces $50 of profit if it wins, not a $75 cash return containing the $25 token.
Stake-returned promotions
Some structures return a cashable or bonus stake as part of settlement. Their value must be modeled under the exact terms.
Odds restrictions
Minimum or maximum odds can constrain how the token is used.
Expiry and market restrictions
A token can lose all value if it expires unused or if eligible markets are too narrow.
Do not call face value cash value
A transparent comparison should state the token type, permitted odds, settlement treatment and any turnover on resulting winnings.