Hedged betting is the practice of betting on multiple or all outcomes of a sportbook or casino bet in order to guarantee outcomes
When an online sportsbook or casino offers a promotion (especially a sign up bonus), you can hedge your bets to take advantage of the offers to the fullest. When done correctly, this practice most often guarantees a profit for the bettor.
Draftkings is offering you free $50 in casino credits IF you bet $122 on tonight’s Toronto Bluejays Moneyline. They are offering American Odds of -195. So without hedging, here are the potential outcomes of this bet:
| Outcome | Probability | Total you Wagered | Total Payout of Bet | Total Profit / Loss |
|---|---|---|---|---|
| If Blue Jays Win | 66.1% | $122 | $184.22 | $62.22 |
| If Blue Jays Lose | 33.9% | $122 | $0 | -$122 |
Therefore 66% of the time, you’ll win your bet AND get the casino credit. But 34% of the time, you will have lost $122 while obtaining the bet token
We find out that Fanduel is offering a payout of +180 for the opposing team. We can use the Hedge Calculators to find out that we should also place a hedged bet of $65 on the opposing team. The new outcomes of this bet would be:
| Outcome | Probability | Total you Wagered | Total Payout of Bet | Total Profit / Loss |
|---|---|---|---|---|
| If Blue Jays Win | 66.1% | $122 on draftkings + $65 on Fanduel | $184.22 | -$2.78 |
| If Blue Jays Lose | 33.9% | $122 on draftkings + $65 on Fanduel | $182.00 | -$5.00 |
Therefore, regardless of which team wins the game, we will receive the $50 casino credit while only potentially losing a maximum of $5!