Oct 8, 2026

How to Convert a Bonus Bet Into Cash in 2026: The Hedge Formula, Worked Out

The quick answer

Stake not returned: a winning bonus bet pays the profit only. FanDuel's own example is a $25 bonus bet on a spread that adds $22.73 to the wallet and keeps the $25.
Hedge stake: bonus x (d1 - 1) / d2, where d1 is the bonus bet's decimal odds and d2 is the decimal odds on the other side.
Worked example: a $100 bonus bet at +400, hedged with $324 on the other side at 81%, returns $76 whichever side wins, a 76% conversion.
Odds: with a 3% margin across the two prices, conversion runs from 45% at -110 to 68% at +400, then falls on longshots.
Hedge leg: the cheaper the other side, the more you keep. Novig charges no fee on a pre-game straight hedge, so compare its price with the book's own price on the other side.
Terms: FanDuel's promotional terms let it close accounts and withhold bonuses from players who lock in profits from a promotion at little or no risk. Read your book's terms before you hedge anything.

A bonus bet is worth less than its face value because the stake never comes back. Hedging it means betting the other side with cash, sized so both outcomes pay the same, and what survives depends on the bonus bet's odds and the hedge's price.

What a bonus bet is

FanDuel's bonus bets page says: "After your bet settles (and if it wins), you'll get to pocket all of the winnings but the initial bonus bet portion of your wager will not be returned to your wallet."

The same page says FanDuel bonus bets expire in seven days unless otherwise stated, can't be used on round robins, and aren't returned after a push. A voided bet does get its bonus bet back, unless it has expired.

Since the stake is gone either way, the bonus bet's value is the profit it can produce. A $100 bonus bet at -110 can win $90.91. At +400 it can win $400.

How we checked

Bonus-bet rules come from FanDuel's bonus bets page and the master promotional terms in its New Jersey sportsbook terms; Novig's fees and pricing from its fee schedule and odds calculator. The FanDuel terms were opened on 6 October 2026 and the other pages on 7 October 2026. The odds in the examples are illustrative, computed exactly and rounded at the end.

The hedge formula

The bonus bet, B, goes on side A at decimal odds d1. A cash hedge, H, goes on side B at decimal odds d2.

Side A wins: the bonus bet makes B x (d1 - 1) and the hedge is lost, for B x (d1 - 1) - H.
Side B wins: the bonus bet pays nothing and the hedge makes H x (d2 - 1).

Set the two results equal and solve for H:

Hedge stake = B x (d1 - 1) / d2

The amount you lock in is then B x (d1 - 1) x (1 - 1 / d2). On a prediction market, where the hedge is quoted as a price p, d2 is 1 / p and the locked amount simplifies to B x (d1 - 1) x (1 - p).

Worked example: a $100 bonus bet at +400

Step 1: the bonus bet's decimal odds are 1 + 400 / 100 = 5.00.

Step 2: the other side is quoted at 81% pre-game on a prediction market, so d2 = 1 / 0.81 = 1.2346.

Step 3: hedge stake = 100 x 4 / 1.2346 = $324.00. At 81c a contract, that buys 400 contracts, each paying $1 if it wins.

Step 4: check both outcomes.

Result	Bonus bet	Hedge	Net
Bonus side wins	+$400.00	-$324.00	+$76.00
Hedge side wins	$0.00	+$76.00 ($400 back on $324)	+$76.00

You keep $76 of the $100 bonus either way, a 76% conversion. The hedge is a pre-game straight trade, so on Novig there's no fee to subtract.

At a sportsbook price of -500 (decimal 1.20), the same hedge takes $333.33, the locked amount $66.67 and the conversion 66.7%. That $9.33 gap is what the -500 price costs over 81%.

Bought live as a taker on Novig, the same 400 contracts would carry 0.03 x 0.81 x 0.19 x 400 = $1.85.

Conversion rate by odds

The ceiling is what you'd keep if the hedge were priced at exactly the bonus side's complement, with no margin anywhere. The last column is an illustrative case where the two prices together imply 103%, so the hedge is 3 points above fair.

Bonus bet odds	Decimal	Ceiling (no margin)	With 3% margin
-110	1.9091	47.62%	44.89%
+100	2.00	50.00%	47.00%
+150	2.50	60.00%	55.50%
+200	3.00	66.67%	60.67%
+300	4.00	75.00%	66.00%
+400	5.00	80.00%	68.00%
+600	7.00	85.71%	67.71%
+1000	11.00	90.91%	60.91%

The margin column is (d1 - 1) x (1 / d1 - 0.03).

Why longer odds convert better

The ceiling is (d1 - 1) / d1, which is 1 minus the bonus side's implied probability. A winning bonus bet at -110 returns $190.91 on a normal $100 stake, and more than half of that is stake you don't get. At +400 the return would be $500, of which $400 is profit, so losing the stake costs you a fifth of the ticket.

The margin's cost grows with the odds, because the hedge stake scales with d1 - 1 and every point of overpricing applies to a bigger stake. In the table, the margin column peaks at +400 and falls after it. Longshots also tie up cash: hedging a $100 bonus at +1000 at 93.91% takes $939.10 until the game settles.

Because a FanDuel bonus bet isn't returned on a push, a market that can push (a whole-number spread or total) can cost you the bonus on a result neither leg wins. Half-point spreads and totals can't land on the number, so they have two outcomes.

Operator terms that restrict it

Read the promotional terms before hedging a bonus bet. FanDuel's master promotional terms let it act against a player who uses a promotion to lock in profits with little or no risk: it can close the account, void the transactions and withhold the bonus along with what it won. The same terms let FanDuel limit eligibility based on a player's betting history and apply the same remedies to anyone who uses more than one account to benefit from a promotion.

A fully hedged bonus bet locks in a profit with almost no risk, which is the situation that clause names. The terms decide whether you can use the arithmetic, and where they prohibit it, the bonus bet is a plain bet on one side.

Using a prediction market for the hedge leg

The hedge doesn't have to sit at the same sportsbook. A prediction market quotes each side as a price that pays $1 a contract, and that price converts straight into d2 = 1 / p.

Novig's fee page says "There's no vig or juice built into our prices," and its schedule charges nothing to either side on pre-game straight trades. Live straights carry a taker fee on a 0.03 coefficient (0.06 for live college football spreads and totals), futures 0.06 except golf and tennis since 10 September 2026, and parlays 0.10. Makers pay nothing on straights.

Both legs need to settle on the same result. A moneyline that counts overtime on one venue and regulation only on the other creates a third outcome the formula doesn't cover.

What to look for

Stake rule: confirm the offer is a stake-not-returned bonus bet rather than site credit, which returns the stake.
Odds: run the formula at a few prices before picking one.
Hedge price: every cent on the hedge side comes out of what you keep.
Fees: a pre-game straight hedge on Novig doesn't carry a fee; live, futures and parlays do.
Pushes and voids: pick two-outcome markets, since a FanDuel push forfeits the bonus bet.
Terms: read the promotional terms first, including any clause on guaranteed or low-risk profits and multiple accounts.

Bonus bet FAQ

How do you convert a bonus bet into cash?

Bet the bonus on one side and the other side with cash, staking bonus x (d1 - 1) / d2. A $100 bonus bet at +400 hedged with $324 at 81% returns $76 whichever side wins. Check the book's promotional terms first; FanDuel's restrict low-risk profits from promotions.

Do you get the stake back on a bonus bet?

No. FanDuel says the bonus bet stake "would not be included in your winnings," so a winning $25 bonus bet on a spread adds $22.73. Site credit is the exception: the stake comes back on a win.

Is hedging a bonus bet against the rules?

It can be. FanDuel's promotional terms let it close accounts and withhold bonuses from players who lock in profits from a promotion at little or no risk.