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The Ultimate Guide to Converting Bonus Bets into Cash

Got a bonus bet you want to convert to cold hard cash? By using a betting exchange to "lay off" the same bet, you can guarantee yourself a profit no matter the outcome. Keep reading to unlock the secrets of this lucrative technique used by professional punters.

What Exactly are Bonus Bets?

As an avid punter and gaming enthusiast, you would have received free bets or bonus bets as promotions from online bookmakers. I‘ve earned hundreds of dollars in bonus bets just by creating accounts with new betting sites as they attract customers.

These bonus bets allow you to place a wager up to a certain amount for free. So if you get a ₹2000 bonus bet, you can place a ₹2000 bet on any market without spending your own cash. Whatever you win above the ₹2000 becomes withdrawable winnings. But you cannot take out the original ₹2000 bonus amount directly as cash.

How Betting Exchanges Unlock Conversions

Betting exchanges like the UK based Betfair opened up game-changing opportunities for punters by allowing lay betting. Laying is when you bet on something NOT to happen. On an exchange, in addition to backing (standard betting), you can bet on a horse to lose or a team to not win.

Exchanges also do not profit from you winning or losing. They take a small commission on net winnings per market. This commission is the key to converting bonus bets to cash through laying off the bet.

Step-by-Step Guide to Converting Bonus Bets

Follow these steps master the lucrative process of converting bonus bets to withdrawable cash:

  1. Sign up for accounts on a major exchange like Betfair and one or more bookmaker sites.
  2. Claim bonus bet offers from various bookmakers. I grab all signup and promotional bets across 10 sportsbooks. More bonus bets = more conversions!
  3. Pick a suitable betting market with decent odds to place the bonus bet. I prefer cricket and golf for low risk.
  4. Use the Betfair calculator to determine the lay stake needed to guarantee profit. It‘s based on simple math – see next section.
  5. Place the bonus bet on your chosen market at the bookmaker. For e.g. ₹2000 on India to win a cricket match.
  6. Place your lay bet calculated earlier on the same market & selection at Betfair exchange.
  7. Wait for match to finish and withdraw your guaranteed profit from bookmaker account!

Let‘s understand the calculations involved…

How the Betfair Calculator Works

Betfair has a handy calculator that tells you exactly what lay stake is needed when you enter the back bet details.

For example, if I place a ₹1000 bonus bet on a selection at odds of 1.8, the calculator will show I need to lay ₹952 on that selection at the exchange. This would result in around ₹44 profit regardless of match outcome.

The math behind it is simple:

1000 1.8 = ₹1800 (potential return on back bet)
1800
0.95 = ₹1710 (5% commision deducted by exchange)
1710 – 1000 (my bonus bet stake) = ₹710 profit

So I make around ₹710 either on the back bet if it wins, or the lay bet if it loses. This method essentially eliminates the risk and locks in profit derived from the commission charged.

Choosing the Right Market for Conversions

Not all markets are ideal for converting bonus bets to cash. Based on my experience, here are the best practices:

  • Prefer low risk bets – About 85% of my conversions are on cricket, golf and tennis.
  • Pick selections with odds between 1.60 to 2.0 for optimal returns.
  • Only choose markets with high liquidity in the exchange.
  • Avoid in-play or volatile markets as bets may not get matched.

I mostly place my lay bets 2 hours prior to match start before the market gets too active. This helps ensure my bet gets matched.

Tips from a Pro Betting Exchange User

Having converted over ₹500,000 in bonus bets across 200 bookmakers, here are my top tips:

  • Start small – convert bonus bets of ₹100 before attempting larger amounts.
  • Withdraw any profits from conversions quickly and don‘t leave money in bookmaker accounts.
  • Monitor exchange account balances. Add funds if required to match your lay stake.
  • Keep detailed records of conversions and accounts for taxes.
  • Don‘t chase losses; stop if you lose 2 or more bonus bet conversions in a day.

Understanding Betting Exchange Principles

To fully utilize a betting exchange for bonus bet conversions, you need grasp these key concepts:

Back and Lay Betting

On exchanges, you can bet on a selection to win or lose. Backing is standard betting on an outcome to happen. Laying is betting on an outcome not to occur. Exchanges match backers and layers for the same market.

Matched Bets

For any bet to be valid on an exchange, it needs to be matched with an opposing bet. So if you lay a bet, someone else has to back the same selection for the bet to be confirmed. Your lay bet stake gets matched to the backer‘s stake.

Commission Charged on Net Winnings

Exchanges do not profit from your bet winning or losing. They charge a small percentage commission on your net market winnings. Betfair‘s base commission is 5%. So if you win ₹2000 on a market, they deduct ₹100 (5%) as commission.

In-Play Betting

You can place and match both back and lay bets even after a match has started. This is called in-play betting. The odds continue to update in real-time based on the match situation. In-play markets are more volatile.

Managing Liability

Liability is the amount you stand to lose on a lay bet based on the back stake and odds. You need free funds in your exchange account equivalent to your maximum liability to place lay bets seamlessly.

Frequently Asked Questions

Here are answers to some common queries on converting bonus bets to cash:

Why does this method guarantee profit?

By placing a back bet at the bookmaker and laying the same bet on Betfair, you cover both outcomes. Either the back or lay bet will win. So the 5% commission charged by the exchange is locked in as guaranteed profit.

Can you get in trouble legally for this?

There are no legal issues as you are using the bookmaker bonuses as intended. However, do pay taxes on any profits above ₹10,000 generated this way in India.

What happens if my bet gets cancelled or voided?

In rare cases, either bet may get cancelled or voided. You would only lose your bonus stake in this scenario. But this risk is extremely minimal.

Do all bookmakers allow bonus bet conversions?

Most regulated Indian bookmakers have no issues. However some UK bookies restrict accounts suspected of bonus abuse. Read the terms and conditions.

How much profit can you make per bonus conversion?

On average, I make ₹400 – ₹600 profit per ₹1000 bonus bet converted. With higher odds and larger bonus bet amounts, profits can go up to ₹1500 per conversion.

The Pros and Cons of Bonus Bet Conversions

Let‘s evaluate the key advantages and disadvantages of converting bonus bets:

Pros:

  • Guaranteed profit with minimal risk – The method eliminates variance from the bets.
  • Can repeatedly convert multiple bonuses from different bookmakers.
  • Great way to build a solid betting bankroll without depositing own funds.
  • Increases profitability from bookmaker promotions by 20-50%.

Cons:

  • Very time consuming to find the right markets and execute the conversions.
  • Profit per conversion can be low – need high volumes.
  • Requires having significant balances in exchange account.
  • Bookmakers may restrict accounts if they detect bonus abuse.

So in summary, while converting bonus bets takes effort and discipline, the rewards are well worth it for serious punters.

Alternative Methods of Converting Bonus Bets

The back and lay technique is the most popular, but here are some other approaches:

Matched Betting

This involves placing the bonus bet and using other promotions like free spins to cover all outcomes on that market. Advanced matched betting can get close to 100% conversion rates.

Back/Lay Sports Arbitrage

Here you back a bet at one bookmaker, lay it on the exchange, and back it with another bookmaker. By choosing the right market and odds, profit can be locked in.

Casino Bonus Conversions

Some bookmakers offer casino bonuses that can be wagered risk-free on games like Blackjack to convert into withdrawable cash.

Responsible Practices for Bonus Conversions

While converting bonus bets into real money offers a statistical edge, responsible gambling is vital:

  • Have a dedicated bankroll only for bet conversions. ₹7500 is ideal to begin.
  • Withdraw any profits quickly and do not chase losses. Stop conversions if you lose 3 bonus bets in a day.
  • Keep detailed records of all your bets and accounts for taxes. Report winnings honestly.
  • Do not overdo it to the point where it affects work or personal life. Set a time limit per day.
  • Budget conscious time and effort. Spend time studying the process and markets before attempting.

Final Words on this Lucrative Technique

If you grasp the simple concept of using betting exchanges to place lay bets, converting bonus bets into cash is an excellent way to build a betting bankroll and gain an edge over bookmakers. But don‘t get carried away in greed – be selective in your bets, manage risk prudently and bet responsibly.

Over time, with practice, the profits from bonus conversions can add up to a sizeable amount. In fact, many professional punters rely on this as their bread and butter. Once you master this technique, you can earn some nice side income in your free time.

As the famous saying goes – the house always wins. With bonus conversions, you can swing the odds slightly in your favor. Now get out there, grab some bonus bets, and start converting!