Definition
Free bet conversion is turning a sportsbook promo free bet into withdrawable cash by betting the free bet on one outcome and placing a cash bet on the other side.
Free bet stakes are not returned. Only winnings count. The equal-profit hedge formula is:
cash hedge stake = free bet amount × (free bet decimal odds - 1) / hedge decimal odds
Worked Example
You have a $100 free bet. You use it on Team A at +200, which is 3.00 decimal odds. The opposite side, Team B, is -220, which is 1.4545 decimal odds.
$100 × (3.00 - 1) / 1.4545 = $137.50
Place the $137.50 cash hedge on Team B at -220.
If Team A wins, the free bet pays $100 × 2.00 = $200 in profit. After losing the $137.50 hedge, net cash is $62.50.
If Team B wins, the hedge pays $137.50 × 100 / 220 = $62.50. The free bet loses, so net cash is $62.50.
That converts the $100 free bet into $62.50 cash value, or 62.5%.
Why It Matters
Free bet conversion helps a bettor compare promos by cash value instead of headline bonus size. It is most useful when choosing odds and hedge prices that preserve more of the free bet’s value.