Recently, many bookmakers have introduced the feature of early bet redemption, thanks to which the client, in order to receive a guaranteed profit, takes the offered money without fear of a possible loss. Of course, such a feature has its pros and cons, but today we will focus more on how cashout has radically changed the psychology of sports betting and affects bookmaker clients.
Definition
As already mentioned, cashout is an early settlement of a bet before the end of a sporting event. Thanks to this function, the bookmaker offers the client to receive the winnings in advance, but in a smaller amount. The only advantage in such a situation is a guaranteed profit that can be obtained without much risk. We will also note the situation in which you can buy out the bet in case of a probable loss, but for a significantly smaller amount.
Additionally, we will highlight the advantages of the cashout function for bookmakers:
- Significant underpricing;
- Early payment of winnings to customers, but in a smaller amount;
- Many customers, especially in the popular case of losing the last event in an express, avoid such disappointment;
- The cashout function helps to keep the player on the site for a long time, thereby warming up interest in sports betting.
As we can see, for bookmakers the cashout function is a significant plus, but for clients it is much less useful. It is worth realizing that cashout will definitely not bring significant benefits in the long run. In a sense, the cashout function obviously reduces the potential winnings. And even if the bet is likely to be lost, there is definitely no point in pressing the “buyout” button, having received a few pennies. Moreover, it is worth trying your luck for this trifle, and in a single situation, getting a win.
Ways to calculate cashout
Each bookmaker uses a similar algorithm to calculate the buyout amount, which consists of the following formula:
(А * (В – 1) – А * (С – 1)) / С
Определения значений:
- A – initial transaction amount;
- B – initial bet odds;
- C – current bet odds.
Let’s look at a clear example of how bookmakers calculate cashout. Let’s assume that a client placed a bet of 1,000 rubles on a clear victory of a team with a coefficient of 2.50. Already in the first minutes of the match, the team scored a quick goal, due to which the coefficient dropped sharply to 1.65. As a result, we calculate what amount the bookmaker will offer for cashout:
(1 000 * (2.50 – 1) – 1 000 * (1.65 – 1)) / 1.65 = (1 500 – 650) / 1.65 = 515 rubles
As a result, we get that the amount of the bet buyout at the moment the coefficient decreases to 1.65 will be 1,515 rubles, where 515 is the net profit. Compared to the potential net gain of 1,500 rubles, this is nothing. But do not forget that the losing team will be able to recoup, or even snatch a victory by the end of the meeting. As a result, the bookmaker’s client remains perplexed, because it is possible to either receive a guaranteed win in advance, albeit in a smaller amount, or take a risk by waiting for the end of the sporting event, but with a possible risk of losing.
From a psychological point of view, the cashout function has radically changed the game. We get that if earlier players made bets and waited for the end of the event, believing in success, today you can buy out the concluded deal at any time, without even waiting for the start of the meeting.
The Psychology and Impact of the Cashout Feature on Players
Today, sports betting has become a constant game that can be compared to the stock market, where there is continuous work. Betting can be compared to investing, where the value is constantly changing in different directions. As a result, the outcome of sporting events has long lost its decisive importance, since players are waiting for a favorable cost of buying out a bet in the next minutes.
It is noteworthy that if earlier bookmaker clients were inactive, unable to buy out a bet, today everything has become operational without interruption.
On the Internet, you can see a lot of materials where the cashout function is compared with the necessary assistance to players, not bookmakers. On some level, there is some truth to this, because a bookmaker client can instantly withdraw money and continue betting on other sporting events. But again, no one talks about the downside, namely that you have to cash out a bet for a smaller amount (the current odds on the outcome), which may even be lower than the starting indicators. Additionally, we note that the bookmaker instantly devalues each subsequent bet from the first second. For example, after the deal is concluded, the bookmaker will immediately offer a slightly smaller buyout amount, even if the sporting event has not started and the odds have not changed. In this sense, conditional financial losses of 5%-10% of the deal amount, over the long term, will bring a significant minus to the bank. And in the wrong hands, the cashout function will bring more trouble than good.
Also, due to psychology, cashout has a negative impact on players, forcing them to buy out their bets in advance for various reasons. And it is noteworthy that the probability of losing is not in the first place.
There are two main reasons why bettors buy out their bets:
- Lack of funds on the account. When the money runs out, and doubts arise about the last bet, the brain automatically makes you agree with the financial losses, which is why the bet is bought out;
- Long wait or postponement of the match. As a rule, few are ready to wait several hours before the start of the match, preferring to place bets in real time. In this situation, waiting plays a significant role in the buyout of the bet. For example, if a failed match is unexpectedly postponed to the next day, not every bettor will want to wait for the start, agreeing to take back most of the invested money. And the second, less popular moment is a long wait for the start of the match. For example, a bettor placed a bet in the morning on an evening match. However, due to the long wait, it was decided to buy out the bet, because there is no time to wait for the start of the match.
The feasibility of using the cashout function
Having considered all the subtleties of the bet buyout, we can confidently say that cashout is exclusively a plus for bookmakers rather than for bettors. Professional players are unlikely to find positive aspects in the early buyout of the deal and partial loss in finances, and for beginners this is a significant minus, which affects the bank in the long run.
Among the main disadvantages of the cashout function, we highlight the following:
- Double margin when buying out a bet: when making a deal and early buyout;
- Increased margin for express bets;
- In the long run, cashout definitely reduces the player’s profit.
But again, many will remember situations when in a match there is already a 99% probability that the bet will not come in. In such situations, buying out the bet is an obvious way out, but with a small caveat. In such situations, the bookmaker offers a few pennies, taking into account the changed odds and other aspects. However, there is always a chance of success, even in an already lost match. Here it is enough to remember situations when bets with odds of 1.01 are lost. And it is quite likely that the bettor will receive a conditional 1%-2% of the starting amount. In this situation, it is better to believe in the unpredictability of the match and at least in 1 out of 100 such situations get a win that will beat the previously bought out deals.
Conclusion
As we can see, the cashout function should be avoided, or even forgotten altogether, because it is impossible to count on significant profits with frequent redemption of bets for a smaller amount of winnings..
