Money back specials and racing refunds: how to turn them into cash
A money back special refunds your stake if your horse just misses, usually by running second. The catch most punters miss: the refund normally arrives as a bonus bet, not cash.
For a matched bettor that is fine. Cover the original bet, then convert the bonus bet when it lands. Here is how, with the numbers worked through.
What refund and money back specials are
Australian bookmakers run these on nominated races most days, and on big carnival meetings in particular. Common versions:
- Money back if your horse runs second
- Money back if your horse runs second or third
- Money back if your horse runs second to the favourite
- In sport, money back if your team loses by a small margin
The refund is capped, and it is usually a bonus bet. A bonus bet returns only its winnings, never its stake, so it is worth less than cash. That gap is exactly what conversion fixes.
Read these five terms first
| Term | What to look for |
|---|---|
| Trigger | Second only, or second or third. Second or third triggers more often. |
| Refund form | Bonus bet or cash. Cash is worth face value; a bonus bet is worth roughly three quarters. |
| Maximum refund | Sets your ideal stake. Staking above the cap adds cost without adding refund. |
| Eligible bets | Often first win bet on the race only; multis, each way place parts and bonus bet stakes usually excluded. |
| Expiry | Bonus bets expire. Convert it soon after it lands. |
Step 1: cover the qualifying bet
Back the horse to win at the bookmaker running the special, and lay the same horse to win on Betfair. Example: back $50 at 5.00, lay at 5.20, 8% commission (a VIC race). Lay stake: $50 x 5.00 / (5.20 minus 0.08) = $48.83. Liability: $205.08.
| Result | Where you stand |
|---|---|
| Horse wins | minus $5.08 |
| Horse runs second (refund paid) | minus $5.08, plus a $50 bonus bet |
| Horse finishes anywhere else | minus $5.08 |
You lay to win, not to place. The win lay covers every outcome: if the horse runs second it has lost, your lay has won, and the bookmaker refund is extra on top. The matched betting calculator works out the lay stake.
Step 2: convert the bonus bet
When the horse runs second, the $50 bonus bet lands in your account. Convert it the same way as any bonus bet: back a selection with it, lay the same selection on Betfair with a stake calculated for a bonus bet (stake not returned).
Back the $50 bonus bet at 6.00, lay at 6.20, 8% commission. Lay stake: $50 x 5.00 / (6.20 minus 0.08) = $40.85. Liability: $212.42. Win or lose, you keep $37.58, about 75% of face value.
Across the two steps: minus $5.08 on the qualifying bet, plus $37.58 from conversion, so $32.50 on the occasions the horse runs second, and minus $5.08 the rest of the time. Odds around 4.00 to 8.00 usually convert best. The bonus bet calculator does this sum.
Which refund offers are worth doing
- A small qualifying loss relative to the refund. Look for a tight gap between the bookmaker's price and the Betfair lay price.
- Second or third beats second only, because it triggers more often.
- Cash refunds beat bonus bet refunds of the same size.
- Runners with a real chance of placing trigger more often than long shots, although long shots cost more to cover and are rarely worth it.
- Check the commission for the race: NSW thoroughbreds are 10% on Betfair, most other Australian racing 8%. See Betfair commission by state.
Common mistakes
- Placing a second bet on the same race and assuming it qualifies. It often does not.
- Laying the place market instead of the win market.
- Converting the bonus bet with a normal lay stake. A bonus bet needs the stake not returned setting, or one outcome loses.
- Letting the bonus bet expire.
Where to go next
The basics of laying are on lay betting explained, and a similar both sides win offer is covered in early payout and 2UP offers. The whole method is on our matched betting in Australia guide, offers by operator are in the bonus bets hub, every tool is on the calculators page and common questions are on the FAQ. The free five episode bootcamp works through real offers, and there is a 7 day free trial if you want to do it with the community. You must be 18 or over.
Frequently asked questions
What is a money back special?
A bookmaker promotion that refunds your stake if your selection loses in a particular way, most often if your horse runs second, or second or third, in a nominated race. In sport the trigger might be your team losing by a small margin.
Is the refund paid in cash?
Usually not. Most Australian bookmakers pay the refund as a bonus bet, which you have to bet again and which returns only the winnings, not the stake. A few offers pay cash, and the terms will say which.
How do you make money from refund offers?
Cover the qualifying bet by laying the same horse to win on Betfair, so you take a small qualifying loss whatever happens. When the horse runs second, you also receive the bonus bet, which you then convert to cash with a second back and lay.
How much is a bonus bet refund worth?
Less than its face value. A bonus bet returns winnings only, so converting it with a back and lay typically keeps around 70% to 80% of the face value, depending on the odds and commission. A $50 bonus bet converted at 75% is $37.50.
Do money back specials apply to each way bets?
Often only the win part. Past Australian refund offers have refunded only the win portion of an each way bet. Read the terms for the specific race.
Can I use a bonus bet on a money back special?
Usually not. Refund offers commonly exclude bets placed with bonus bets, and many apply only to your first win bet on the nominated race.
Written by the YAUPICKS team. Last reviewed 18 October 2026. Offer terms change often; the bookmaker's own terms are the final word.
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