Free bets vs risk-free bets: What’s the difference?

Sportsbooks in the United States are constantly battling for new customers, and promotions are their biggest weapon. If you’ve opened a sportsbook app recently, you’ve likely seen offers for free bets and risk-free bets. They sound similar, and many bettors assume they mean the same thing. But in reality, these promotions work very differently, and misunderstanding the terms could cost you money instead of giving you an advantage.

Free bets usually give you bonus credits to place a wager without using your own bankroll, while risk-free bets act more like insurance, refunding your stake (often in credits, not cash) if your first wager loses. Both can be useful, but knowing the difference will help you squeeze the most value out of sportsbook promotions.

Also Read; How to deposit and withdraw safely from online sportsbooks

Here’s a clear breakdown for US bettors on how these two popular offers stack up.

What are free bets?

A free bet is essentially a betting voucher. The sportsbook gives you bonus funds to place a wager without dipping into your real-money balance.

• Example: You receive a $20 free bet. You place it on an NFL game at +200 odds. If the bet wins, you get $40 in winnings, but not the $20 stake — since that came from the sportsbook.
• Key point: You only keep the profit, not the free bet amount itself.

Free bets are common as welcome bonuses or loyalty rewards. They’re straightforward but can carry restrictions such as minimum odds or time limits.

What are risk-free bets?

A risk-free bet is not truly risk-free, despite the name. It’s typically offered on your first wager after signing up. If that bet loses, the sportsbook refunds your stake — but usually as bonus credits, not cash.

• Example: You place a $100 first bet on an NBA game and lose. The sportsbook refunds $100 in betting credits, which you must use again.
• Key point: You don’t get your cash back, and any winnings from the refunded bet may also exclude the stake.

Risk-free bets can give new bettors confidence to place larger first wagers, but the “refund” is tied to restrictions.

Key differences between free bets and risk-free bets

Feature	Free Bet	Risk-Free Bet
When you get it	Anytime, often as promos or rewards	Usually only on your first bet
Stake returned?	No, you only keep the profit	Yes, but usually as site credit
Risk level	No risk to your own bankroll	Only protects your first wager if it loses
Flexibility	Can often be split into smaller bets	Tied to initial first bet size
Best for	Low-risk, casual testing of markets	Bigger first wagers from new bettors

How US bettors can use them smartly

• With free bets: Target higher odds markets to maximize profit since you don’t risk your own stake. A free bet on a heavy favorite gives little return.
• With risk-free bets: Use your first wager wisely — ideally on a bet with solid value but not a huge longshot, since you’ll want the best chance to win or recycle your credit.
• Always read terms and conditions: Some sportsbooks add restrictions like minimum odds, expiration dates, or credit that must be used all at once.

Also Read: In-game sports betting is on the rise in the US, but here’s why it may not be good news for you

FAQs

Q1: Are free bets and risk-free bets the same thing?
No. Free bets give you a bonus stake to wager, while risk-free bets refund a losing wager, often in credits.

Q2: Can I withdraw free bet credits or refunds as cash?
Generally, no. You must wager them again, and only the profit from winning bets can be withdrawn.

Q3: Do all US sportsbooks offer risk-free bets?
Not always. Many have shifted to “bet and get” offers instead, but some still promote risk-free first wagers.

Q4: Which is better for new bettors?
Risk-free bets are better if you plan a bigger first wager, while free bets are good for trying out different markets without risking your bankroll.

Q5: Why do sportsbooks use these promos?
They’re designed to attract new players and keep existing ones active, but they also come with conditions that favor the sportsbook.