How bonus bets work: you keep the winnings, not the stake

Bonus bets let you place a wager without risking your own cash, but on a win the amount staked never comes back, & FanDuel’s expire in 7 days unless otherwise stated.

What a bonus bet is

A bonus bet is a promotional credit a sportsbook puts in a customer’s account, which can be used to place a wager instead of deposited cash. Action Network calls bonus bets, also known as bet credits, “the most popular promotional currency in sports betting”.

According to FanDuel’s bonus bet guide, bonus bets appear on the account page or bet slip (the on-screen form where a bet is built & confirmed). They are either “all-purpose or for a specific sport, game, or bet type”, & the restriction is shown on the slip or account page.

FanDuel says it grants some bonus bets directly, while others arrive after a customer opts into a promotion & completes the activity it specifies. Action Network adds that sportsbooks hand them out at sign-up & at other times, for example as a reward for betting often or as an incentive to return.

Why the stake does not come back

The central rule is about the stake, meaning the amount wagered. FanDuel puts it plainly: “With Bonus Bets, only the winnings are returned to you. You will not get the stake returned as cash in your wallet.”

FanDuel’s own example: a customer with $10 in bonus bets puts $5 of it on the Bills to cover the spread. If the bet wins, the winnings go into the wallet, but the $5 in bonus bets is not included.

Action Network’s explainer gives a fuller version. A bettor with $75 in bonus bets & no cash puts $50 of them on the Bruins to beat the Penguins at +110.

If the Bruins win, the bettor profits $55 but does not keep the $50, leaving $55 in cash plus $25 in unused bonus bets. If the Bruins lose, Action Network says, “the bonus bets just go away.”

Bonus bets vs cash & site credit

Site credit is a different promotional currency. FanDuel says that with site credit “the stake will also be returned to you if your bet wins”.

Action Network illustrates the gap: $20 in site credit on the Warriors at +110 against the Celtics profits $22 & keeps the $20 wagered, whereas bet credits would return only the $22 profit. It notes that FanDuel used to give out site credit but no longer does, & that “Almost no American sportsbook uses site credit anymore”.

Cash & bonus bets can share one stake. FanDuel says a $50 wager can be made with a $25 bonus bet plus $25 from the wallet, but only the cash or site credit portion of the stake comes back on a win.

FanDuel also says bonus bets do not count towards other offers: “Only bets placed with deposited cash or winnings will qualify you for a promotion.” Bets placed with bonus bets or site credit disqualify the customer from that promotion.

Expiry, voids & pushes

Bonus bets do not last indefinitely. FanDuel says they “will expire in 7 days unless otherwise stated”, with the expiry date shown on the account page & the soonest-expiring credit listed first in the bet slip.

Action Network gives the same warning in general terms: bonus bets “generally don’t last forever, and if you don’t use them, you’ll lose them”.

FanDuel sets several further limits. A customer cannot combine more than one bonus bet on a single wager, though several can be used on the same slip, & bonus bets cannot be applied to round robins, a format that splits a set of selections into multiple smaller parlays.

A bonus bet does not have to be used in full. FanDuel says any unused balance stays in the account until the expiry date.

Settlement differs between a void & a push. If a bet is voided (cancelled by the sportsbook), FanDuel returns the bonus bet “unless it has already expired”; after a push, where the result lands exactly on the line, “Your Bonus Bet will not be returned to your account”.

How promotions turn into bonus bets

Action Network lists six main bonus types offered by sportsbooks, “with most eventually ending up as bonus bets”. Deposit matches, parlay insurance & similar offers all end in bonus bets, it says.

One example is the first bet on the house, which FanDuel has called a no-sweat bet. Action Network says that at FanDuel a first bet of anywhere from $1 to $1,000 that wins pays cash, but if it loses, the customer is credited the same amount in bonus bets.

Those credits then follow the stake rule. “To turn those bets into cash, they need to win,” Action Network writes, & if they lose, the customer is “suddenly left with nothing”. It adds that any “bet $5, win $200” promotion means $200 worth of bonus bets, not cash.

Some offers also carry a rollover, a requirement to wager a set amount before bonus funds are unlocked. Action Network describes a DraftKings deposit match paying 20% of the deposit, where “you must wager 5x your deposit in 90 days” to claim the full bonus, released $1 for every $25 wagered.

On a $500 deposit that means a $100 bonus, which requires $2,500 of bets within 90 days. Action Network cautions that specific terms change frequently & that the sportsbook’s own terms are the authority.

From risk-free to bonus bets

The name itself reflects a change in US marketing. Action Network says that in 2023 many sportsbooks moved away from “free” language “to comply with Responsible Gaming guidelines from state gaming commissions”.

Covers reported that the American Gaming Association (AGA), the national industry trade group, updated its “Responsible Marketing Code for Sports Wagering”, a self-imposed set of standards, in an announcement noted publicly on 28 March 2023. The changes ended “the use of the term ‘risk-free’ in advertising”.

The updated code also required anyone featured in sportsbook advertising to be “21 or older”, banned college partnerships touting wagering (with exceptions for alumni networks & responsible gaming) & barred name, image & likeness deals with amateur & college athletes. The AGA said the changes took effect immediately, with a grace period for existing advertising until 1 July.

Regulators, fines & banned words

State regulators have acted on the same language. According to Covers, the Ohio Casino Control Commission sought “$150,000 fines for all three bookmakers”: BetMGM, Caesars Sportsbook & DraftKings.

The commission said the three, or their affiliate marketers, ran ads without clear problem-gambling messaging & a helpline number, & used promotions described as “free” or “risk-free” “when bettors were still required to incur a loss or risk their money”. The fines for Caesars & DraftKings were approved first, & the commission then approved BetMGM’s $150,000 fine.

In Illinois, iGaming Business reports that the Illinois Gaming Board voted on Thursday 12 September to tighten advertising rules. Operators may not promote wagering as “free of risk” in any way & “may not use the words or phrases ‘free’, ‘cost-free’ or ‘free of risk'”.

The same Illinois rules bar wagering ads at venues where most attendees are likely to be under 21, & sports betting ads on college campuses or college media.

In Massachusetts, Covers reports that the Massachusetts Gaming Commission fined PENN Sports Interactive, operator of ESPN BET, $15,000 after ESPN host Rece Davis called a pick a “risk-free investment” on College GameDay on 24 March 2024.

At an adjudicatory hearing for PENN in April, the Investigation & Enforcement Bureau (IEB) declared Davis’ comments a violation of Massachusetts sports betting laws & of ESPN BET’s guidance policy, which bans terms such as “free”, “risk-free” & “can’t lose”. The commission’s decision fined PENN “as a result of the aforementioned regulatory violations” & said it expects future incidents to be met with a public statement “affirming that ‘risk-free’ language is prohibited under both regulatory and internal content standards.”

Tax changes & the real cost

Bonus bets also matter for state tax. According to Yogonet, Colorado sportsbooks pay a 10% tax on sports betting revenue & could deduct the value of non-cash promotional wagers, capped at 2.25%.

House Bill 1311, signed by Governor Jared Polis on 15 May 2025, cuts that cap to 1% from 1 January 2026, with “complete removal by July 1, 2026”. The bill passed the Colorado House 52-13 & the Senate 28-7.

Not every promotion carries the same limits: Action Network describes “Actual Money” & profit boosts that pay real cash, & site credit returns the stake. Bonus bets, however, return only winnings, do not last indefinitely, & as Action Network puts it, if they lose, the holder is “left with nothing”.

Questions

Do bonus bets include the stake?

No. FanDuel says only the winnings are returned & the stake is not returned as cash, so in Action Network’s example $50 in bonus bets at +110 profits $55 & the $50 is gone.

Do bonus bets expire?

Yes. FanDuel says its bonus bets expire in 7 days unless otherwise stated, & Action Network warns that unused bonus bets are lost.

What is the difference between bonus bets & site credit?

FanDuel says site credit returns the stake as well as the winnings when a bet wins, while bonus bets return only the winnings. Action Network says almost no American sportsbook uses site credit any more.

What happens to a bonus bet if the bet is voided or pushes?

FanDuel returns the bonus bet after a void unless it has already expired. After a push, FanDuel says the bonus bet is not returned.

Why don’t sportsbooks call them risk-free bets any more?

The American Gaming Association’s updated marketing code ended the use of “risk-free” in advertising, & regulators in Ohio, Illinois & Massachusetts have fined or banned “free” & “risk-free” language, according to the sources cited above.

Sources

• fanduel.com
• caesars.com
• actionnetwork.com
• covers.com
• covers.com
• igamingbusiness.com
• covers.com
• yogonet.com

Sources checked 29 October 2026. Information only. 18+.