Is EV cashout worth it? Learn how to use it in poker

Poker is a card game, but it is also all about making calculated risks and sharp decisions. Right at the heart of that decision-making is a little notion called expected value, or for short, EV, and that is among the cornerstones of poker strategy. Nowadays, online poker has developed something on its own: EV cashout, promising variance reduction and guaranteed partial winnings before the hand is even over. Is it worth taking?

In the following article, we’ll break down just how EV cashout works, how you should be looking to use it, and how understanding expected value itself can drive up your long-term poker dollar profit.

What is an EV cash-out in poker?

Some of the online poker sites offer such a facility known as EV cashout whereby their users have an option to lock in the expected value of their hand before the cards are flipped. You can accept a guaranteed payout based upon the statistical probability of winning the hand, instead of risking it all on the turn of a card.

How it works:
Introducing the turn all-in in Texas Hold’em with 80% odds to win a $100 pot, EV cashout will give you an instant $80 if this is available through your platform, rather than risk a bad beat on the river. In return, the platform takes a small percent commission with this “insurance.”

Example:

Pot size: $100
Your winning probability: 80%
Cashout amount offered: $80 – $3 platform fee = $77

You walk away with $77, whereas, had you refused, it would have exposed either the full win of $100 or a complete loss.

Expected value – explanation

It’s hard to really explain EV cashout fully without first describing what expected value is. At poker, EV represents the amount that you’re supposed to win or lose with some particular play or action over the long term.

EV Formula:

EV=(Probability of Winning×Amount Won)−(Probability of Losing×Amount Lost)

Example: You’re in a heads-up situation with a $200 pot. You have an 80% chance of winning, so your EV is:

EV=(0.8×200)−(0.2×0)

Your EV is $160; thus, in the long run, this call is well worth making, although you will lose sometimes.

Advantages of EV cashout

Although for most players, EV cashout is considered an added expense, applied correctly, it’s actually quite powerful. Here it may be applied sensibly:

1. Reduces variance
   Poker is simply a very swingy game; sometimes, variance will just knock out even the best players in the short term. EV cashout smooths out the swings by securing partial winnings that make bankroll management much easier.
   Best for: players on a limited bankroll who cannot take huge downswings.
2. Helps avoid bad beats
   Bad beats happen—even when you’re heavily favored. The ability to go for an EV cashout will save you from losing huge pots on the river due to bad luck.
   Example: you are having pocket aces against an opponent’s flush draw. If you suspect the flush may hit, then it may be safer to cash out.
3. Provides superior long-term profits in selected cases
   This means that if the cash-out rake is small and the payout is near your EV, then the true cash-out could be the correct long-term play in fairly gamey games such as PLO.

Disadvantages of EV cashout

While EV cashout can be helpful, it comes with downsides that serious players should consider:

1. Lower returns because of commission entitlement
   EV cashout also has a small fee that is taken by the platforms. It eats into your would-be profit, which can be a good amount if you use this feature too frequently.
   Example: if the platform charges 3% on every $100 cashout, you’re losing $3 per hand. Over 1,000 hands, that’s $3,000 in fees.
2. Long-run EV loss
   The more you take EV cashouts only when you are heavily favored, the more you will risk missing a large pot and hurting your long-term EV.
3. Encourages risk-averse play
   In that sense, EV cashout can lead you to be ultra-conservative and unable to make big EV plays that involve more risk, greater reward.

When to use EV cashout?

It’s all about timing when trying to use the EV cashout correctly. Here are a few strategic instances where this would make sense:

1. In high-variance games
   Games featuring giant swings, like pot-limit Omaha, include heavy multi-way pot play with high variance. This is a scenario where EV cashout can stabilize your bankroll.
2. During final table play
   When one is deep in a tournament and a payout jump is nearby, locking in guaranteed winnings reduces the chances of going bust before the next prize tier.
3. When you’re under-banked
   On a low bankroll, whenever you must not lose a huge pot without significantly damaging your continuation in the game, take the EV cashout and let yourself hang around longer in the game.

Avoiding common EV cashout mistakes

Even seasoned players mess up when it comes to EV cashout. Here’s what to look out for:

• Ignoring fees: a person should not decide without considering the fee for cash withdrawal.
• Using EV cashout overly: use it sparingly; it’s not for every hand.
• Emotional cash outs: never cash out of fear or on tilt; always go with mathematically correct decisions.

Actual EV cashout situations

Here are some practical illustrations of how the EV cashout will go:

Scenario 1: successful hand
hand: you have a straight on the turn against a flush draw.
pot: $200
success rate: 75%
cashout offer: $150 after fees.

Strategy: don’t cash out when the rake is too steep; trust your hand strength.

Scenario 2: tournament bubble
hand: all-in with pocket kings near the money bubble.
cash-out offer: 95% of the expected value with this very strong hand.

Optimal play: consider taking the cashout if surviving the bubble is critical.

Conclusion: is EV cashout worth it?

While EV cashout can be a seriously powerful tool if used right, it’s certainly not magical. Knowing the advantages and disadvantages, calculating the expected value, and knowing when to lock in profits is one way to improve your game. Ultimately, it’s about balancing risk and reward.

Sometimes, taking the money is the best play. Other times, letting the cards fall where they may could lead to bigger wins. The choice is yours—but now, you’ll make it with a sharper understanding of EV.