What Are the Payout Fees for Online Betting?

The majority of the online sportsbooks offer various wagering options, with some even allowing you to place bets on events that have already occurred. In some instances, you might have to pay additional fees to get your bets placed accurately. Below, we’ll discuss the various payout fees that you might encounter when betting online, as well as what they mean.

Payout Fees For Winning Bets

When betting on sports with online bookmakers, you’ll likely come across the following two types of payout fees:

  • Marketing fees
  • Service fees

The marketing fees are what the bookmaker takes in order to process your wager. This typically includes charging a fee per-item for betting exchanges as well as a separate fee for taking deposits and making withdrawals. These fees are usually displayed clearly in the sportsbook’s terms and conditions, but you might also come across them unexpectedly when placing a bet, particularly if you’re playing on a small stakes level.

The service fees are what the bookmaker takes to cover the cost of operating the website. These fees can be found in the sportsbook’s terms and conditions, but they’re typically not disclosed until after you’ve wagered a certain amount of money. When playing on a low stake level, these fees might not be that high, but as your wager amount climbs, so too does the service fee.

Odds Fee

In addition to the marketing and service fees, some online sportsbooks charge an odds fee. This is essentially a fee that the bookmaker levies due to the non-perfect odds of certain events. When placing a wager on a certain team or player, the odds might be in favor of that team or player, but due to the law of large numbers, there’s also a chance that the event could end up favoring the bookmaker. This is why bookmakers charge an odds fee.

For example, if you bet on the Chicago Cubs to win the World Series, the odds are fairly good that they’ll win. However, due to the law of large numbers, there’s also a chance that the Houston Astros will come out on top. In that case, the bookmaker would make money due to the difference in odds, even though the bet itself was placed on the Chicago Cubs. In some instances, this could amount to a significant chunk of change. In general, though, this is a small fee that goes toward the cost of operating the website.

FINAL TAKEAWAY

In most instances, when betting online, the fee for your wager is either a marketing fee, a service fee, or an odds fee. In the case of marketing fees, these are fees that the bookmaker takes in order to process your wager. In the case of service fees, these are fees that the bookmaker takes in order to run the website. In the case of odds fees, these are fees that the bookmaker takes due to the non-perfect odds of certain events. When playing on a low stakes level, these fees might not be that high, but as your wager amount climbs, so too does the fee. Finally, each type of betting fee has a different purpose and is usually disclosed in the sportsbook’s terms and conditions, but you might not always see them clearly stated upfront, particularly if you’re playing on a small stakes level. For a more detailed explanation of the different types of fees that you might encounter when betting online, please refer to our guide on How to Read an Online Betting Terms and Conditions.