Definition
Cash out means settling a bet before the event is over for a sportsbook offer. You accept the offer, the bet closes, and you no longer receive the original payout if the pick wins.
There is no universal cash-out formula because the offer is set by sportsbook pricing and margin. For a simple win/loss bet with no push outcome:
fair value = current win probability × original total return
Original total return means stake plus profit.
Worked Example
You bet $110 on a team at -110. If it wins, the profit is $100 and the total return is $210.
At halftime, the sportsbook offers $145 to cash out. Your live estimate gives the bet a 65% chance to win.
fair value = 0.65 × $210 = $136.50
The $145 offer is $8.50 above your fair value, so accepting has the better expected value. If your estimate were 75%, fair value would be:
0.75 × $210 = $157.50
In that case, holding has the better expected value than taking $145.
Why It Matters
Cash out helps a bettor compare an early settlement offer against the current value of the ticket. The edge comes from pricing the live win chance better than the sportsbook’s offer.