JUMP TO:
- What are bonus bets?
- How sportsbooks offer bonuses
- Bonus bets vs. Free bets
- How to claim bonus bets
- Common bonus bet wagering requirements you should know
- Tips for maximizing value with bonus bets
- Making the most of sportsbook bonuses
With sports betting legal or close to legalized in over two-thirds of the United States, there has never been a better time to become a bettor. And, with so many sportsbooks offering massive incentives to sign up as a new user, it's almost a no-brainer to check the bonuses and promos out.
We've all seen the ads and TV commercials before — sportsbooks really love enlisting new users.
But what exactly is a bonus bet? And, how do they work? Which sites and apps have the best bonuses, and which ones come up a little empty?
Here's a full explainer on sportsbook bonus bets, how they work, how to use them while betting on sports, and more about offers often (incorrectly) referred to as "free bets."
What are bonus bets?
Bonus bets are betting credits issued by sportsbooks as a promotion that bettors can use to place a wager without risking their own cash.
If you win, you receive only the winnings, not the original bonus stake.
Think of it this way: Your buddy fronted your stake on a bet and said "keep your winnings if you win." Your reward is free money. The sportsbooks' reward is the likelihood of you continuing to play on their app or site.
For example, in conjunction with a FanDuel promo code, you can use bonus bet offers like this:
FanDuel Sportsbook offer from October 2025
How sportsbooks offer bonus bets
Sportsbooks issue bonus bets through a variety of promotions and markets, including:
Sign-up welcome bonuses
New users can receive bonus bets after making an initial deposit and placing a qualifying wager.
First bet insurance
If your first cash wager loses, the sportsbook may refund your stake in the form of a bonus bet, up to a specified, maximum amount.
"No-sweat"or "risk-free" bets
Sportsbooks offer you a risk-free bet and then issue you play money up to a certain amount if your bet loses. (Note: These terms are often restricted from sportsbook marketing as of 2025, in order to prevent any potentially misleading messaging to the user that there's no risk in sports betting.)
Existing user promotions
You can earn bonus bets through loyalty programs, or by participating in "Bet and Get" offers for specific games or bet types.
Referral bonuses
Both you and a friend can receive bonus bets when you sign up using your referral link and meet the promotion's requirements.
Good faith offers
If something unfortunate happens to one of your bets — like your Victor Wembanyama Defensive Player of the Year NBA betting future goes bye-bye because of his season-ending injury — you might get a good-faith offer by the sportsbook with which you made the bet. Usually these are capped to $5 or $10.
Bonus Bets vs. Free Bets: What’s the difference?
With bonus bets, oftentimes you cannot immediately withdraw your winnings as cash.
Your winnings, rather, serve as play money in your account. Once you win a second single bet with the winnings, it turns them into real money. Also, sportsbooks may require you to match the amount with a deposit of your own money at the same time.
Also, the term "free bets" is not seen widely in this age of betting advertising. Recent legal restrictions have been placed on sportsbooks using the term in marketing, emphasizing that copywritten language not imply "free" when there's already a commitment required by customers to claim the offer.
How to claim and use bonus bets
Bettors usually need to claim bonus bets by opting into the promotion, then checking the bonus bet option when you're making your bet so the book knows that you're not paying cash.
Common bonus bet wagering requirements you should know
Promotions like bonus bets are not always allowed in certain states. In some cases, bonus bets can only be up to a certain maximum amount or bet on a certain type of bet.
Here's the list of Bonus Bets terms and conditions from DraftKings, as of October 2025:
When using a Bonus Bet, please be aware of the following:
- You must enter the amount of the Bonus Bet (or a value higher than the Bonus Bet) into the wager/stake box in order to successfully use the Bonus Bet. Bonus Bets must be used in whole as they cannot be split into multiple wagers.
- When you win a bet for which you have used a Bonus Bet, only the prize amount of that bet will be returned to your wallet. Any Bonus Bet values used are not included in settlement returns.
- Only one Bonus Bet may be used on the Bet Slip in any one transaction.
- Bonus Bets are not eligible to be used on Teasers.
Tips for maximizing value with bonus bets
Claim bonus offers at several books
Bettors should keep their options as open as possible by using multiple sportsbooks to claim bonus bets.
One potentially profitable example is arbitrage betting: If you find a line that's mispriced at two sportsbooks, you can "arb" and take each favorable side at one operator.
The apps may limit which types of bets you could make, but if you find a two-sided market where you see an opportunity to middle into a net win, sign up for books you haven't joined yet and lock it in.
Target the highest possible +EV on underdogs
To maximize the value of a bonus bet you receive, you should use it on a wager with longer odds, not on a heavy favorite.
Lock in the highest expected value, or positive EV (+EV) on underdogs or underdog-priced sides.
Because you only receive the winnings of your bet, not the original stake, you should aim high with the biggest payout possible.
Of course, that doesn't mean you should make a 12-leg parlay with the bonus bet money. You also want to claim the free money, and you won't see a cent of it if you do a long-shot parlay and lose even one leg.
Focus on one- or two-way markets
Restrict how many outside forces can impact your bonus bet, and consider balanced juice when making these bets.
For example, tight sportsbook offerings like player props with a lopsided Over or Under, and moneylines that have relatively balanced juices (favorite -300, underdog +300 in American odds, for instance) offer optimal conditions.
Making the most of sportsbook bonuses
Again, bonus bets don't have cash value, so you're only winning the potential payout if and when your bets wins. You won't get your stake back, and the bet will have a specified maximum amount.
So, make the most of the bonus by making a bet that will leave you with at least the amount of the bonus. That way, you can turn it into real money.
Don't try to "go viral" with an extreme long-shot bet — why waste a free bet with an impossible wager?
You want every part of the bonus bet experience to be positive, so you walk away with found money.