How the online casino bonus business model works

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You’ve probably seen the growth of online casinos in the last few years.

Especially if you live in the UK. These casinos have appeared out of nowhere and are now a mainstay both on the high street and online.

Multiple sports teams and events are sponsored by them, but how did they get so big? With casino bonuses. In this article, we’re going to look at how casino bonuses have become such an important part of the promotion and growth of online casinos, and how they really work.

How online casinos use bonuses to bring in customers

Firstly, casino bonuses are one of the core promotional and marketing tools that online casinos use. It’s one of the reasons they’ve become so big over the last few years. If you’ve ever seen adverts for things like William Hill bingo bonus code, you’ll know exactly what we’re talking about.

Traditionally, land-based bricks and mortar casinos have had the ability to offer incentives to gamblers who spend a lot in their casino. These are known in the industry as “comps”. After spending a long time at the tables, you might get given a free meal and some free drinks. Spend even more, and you could get a free room in the casino’s own hotel.

Online casino bonuses work a lot like this, they’re a way of rewarding players. Except they’re offered to players BEFORE they start gambling, as a way to entice them in. There’s a lot of competition in the casino bonus market, but they give players a reason to sign up and deposit at that specific casino rather than one of the many competitors.

Different types of online casino bonuses

There are a few different online casino bonuses these days. One of the most popular is the “matched deposit” bonus. This gives the player an amount equal to their first deposit, often a 100% match (but sometimes more). The player must then wager a certain amount before they can withdraw the bonus cash, but they tend to have more to play with including their bonus funds.

Another popular bonus is the no deposit bonus. This is normally a smaller amount, but is given to players who haven’t even deposited yet and can be a great way to play for free. Casinos use these to get players in, but the sort of player they attract might not actually be as willing to spend money.

Other offers and bonuses are also used, like free spins on slots and other special awards.

How online casino bonuses have changed

Originally, you could use almost any bonus to meet the casino’s wagering requirement before you could withdraw. That meant that many savvy players chose blackjack to clear their wager requirement. That’s because if you follow the optimum strategy for blackjack, the house has a very small edge. You could therefore wager the required amount without losing hopefully much of the bonus funds or any of your own deposit, before withdrawing for profit.

Casinos soon realised what was going on, and changed their terms. Nowadays, bonuses either need to be wagered on slots (much bigger house edge) or have extremely high wagering conditions on other games. While it isn’t as easy to guarantee a profit, bonuses are still a great way to start playing and one that attracts many new players for casinos every year.