Why Are Casinos Giving Away “Free” Money and Is It Worth It?

1. They Make Money from Most Bonuses

Bonuses are supposed to give the player a short-term advantage and boost their bankroll by providing the user with more cash. Unfortunately, the wagering requirements change the equation. When you calculate the value of most casino bonuses, you will find out the real picture.

The high rollover requirements mean that most bonuses have a negative expected value for the player. In other words, instead of making money, these offers can actually cost you money as you attempt to meet the playthrough requirements.

For instance, let’s say you claim a $1,000 slot bonus with 35x rollover. The average slot game offers an RTP of 96.00%, or a 4.00% house edge. Casinos often prohibit using bonus funds on slots with RTPs significantly higher than the average.

In this example, your EV equation looks as follows:

• • $1,000 X 35x rollover = $35,000 wagering requirements
  • $35,000 X 4.00% = $1,400 expected losses based on the house edge of 4%
  • $1,000 – $1,400 = -$400 EV after clearing the bonus

For this scenario, the $1,000 bonus funds you claimed have a negative EV of $400. In other words, the bonus is likely to cost $400 by the time you’re done with the wagering requirements.

That’s how casinos are able to afford all the crazy offers you see out there.

2. Bonuses Funnel Players Where Casinos Want Them

As mentioned above, operators often limit the games you can use your online casino bonus funds on. Some examples of common limitations include:

• • Making a select number of slots bonus eligible, usually games with a low RTP
  • Prohibiting table games with high RTP
  • Not allowing bonus funds on games with progressive jackpots

Another tactic for limiting players’ options for reaching their rollover requirements is adjusting bonus contributions for games. Slots, for instance, usually contribute 100% toward your playthrough requirements.

Table games, on the other hand, such as blackjack or roulette, often only contribute a fraction of your stake toward the rollover. For instance, only 10% of your stake amount may count toward the rollover, forcing you to bet larger amounts or play for longer to meet the requirement.

The problem with these terms is that you’re limited in the games you can play efficiently for the bonus, forcing you to stick to titles you might normally avoid. In essence, casinos use bonuses to funnel the players in the direction that suits them best.

3. “Free” Money Help Casinos Control Your Betting Habits

Limiting what games are bonus-eligible is not the only way casinos use promotions to control their players. Some operators also limit your maximum stake amount when using bonus funds.

Your play-through requirement is tied directly to your stake amount. So, by limiting you to a relatively small stake amount, the casino ensures that you must play more rounds of the game to meet the rollover.

As a result, the volatility goes down and the actual result when you’re done with the wagering requirements is very close to the expected result. Simply put, bonuses provide a risk-controlling instrument to the casinos.

Just imagine the following scenario to understand this better. You need to roll over $10,000 for a bonus. You decide to do it by betting $1,000 ten times, so luck plays a huge role. A player might get lucky and win big.

In contrast, when you play with small stakes, your upside is much smaller, and you still need to go through a ton of rounds. The house edge will do its job eventually, thanks to the law of large numbers.

Another method casinos often use to limit wagering opportunities is to forbid specific strategies when using bonus funds. Systems that give players a high chance of winning, such as betting on 60% of the possible outcomes in roulette, are usually disqualifying. If you are caught using these methods, you will lose your bonus funds and potentially face additional penalties.

The specifics about which strategies you can or cannot use will vary from one casino to another. That’s why it’s important to read the terms and conditions for the promotion and the casino prior to claiming any offer.

4. Bonus Funds Can Expire, Forcing You to Play More

Another pitfall to be aware of when using bonus funds is that your promotional funds usually have a shelf life. In other words, if you do not use your bonus funds within the given time limit, you will lose them.

Expiration dates on their own are not intolerable. However, as mentioned above, most casino bonuses have rollover requirements.

For instance, let’s say you claim a $1,000 bonus with a 30x rollover. This places your playthrough amount at $30,000. If your funds had no expiration date, you could withdraw your money whenever you meet the $30k playthrough.

Now, let’s say you claim the same bonus, but your funds expire in 30 days. In this scenario, you must meet the $30,000 playthrough requirements for your bonus, or you will lose all of your remaining bonus funds.

Bonus funds that expire quickly make it that much more challenging to successfully make anything from offers. Customers often play way more, resulting in bigger losses and more mistakes.

5. Casinos Limit the Offers at Your Disposal

Welcome promotions are often the largest bonus packages offered by casinos. This is excellent news if you are using a player-friendly promo from a trusted operator.

On the other hand, bloated promo packages can cause you headaches down the road if you are unable to meet their playthrough requirements. This is because many casinos only allow you to have one bonus promotion active at a time.

Let’s say two promotions are offering $1,000 in bonus funds each. However, the first has a 35x rollover, while the second only requires a 10x playthrough requirement.

The rollover in the first example is significantly higher, making it more challenging and time-consuming to meet. You will be unable to accept any new bonuses until you meet the requirement. As a result, you risk missing out on other, potentially better, promotions.

Also, if you withdraw before meeting the requirement, even if you do not withdraw “bonus” funds, you likely forfeit any promotional monies in your account.

6. Bonuses Encourage You to Deposit More

Any casino bonus pitfall that inexperienced players can fall into is to deposit more money than they planned to, in order to qualify for a bonus.

This violates one of the cardinal rules of gambling: never bet money you cannot afford to lose. The rule applies even when discussing bonus funds.

For example, let’s say you planned on depositing $40 into your account. However, you see the casino is running a promotion that requires a deposit of $50. Increasing your deposit by $10 is likely doable, but still not recommended.

Now, imagine you planned on depositing $50 but discover you must deposit $200 to qualify for the new bonus promotion. In this situation, you would be violating good bankroll management significantly by quadrupling your deposit.

Players can trick themselves into depositing more money to claim a promotion, hoping to win even bigger prizes with the promotional funds. However, as discussed above, there are many tricks casinos can use to ensure that you do not win money with your bonus funds.

7. Bonuses Lead You to Specific Payment Methods

In addition to having deposit minimums, many casinos have started offering bonuses for specific payment types. It is not uncommon for casinos to incentivize certain payment types by offering better bonuses for those banking methods.

For instance, sites often have bonuses that are exclusive to members who deposit with an approved cryptocurrency. This is not bad per se and most businesses do it, but you should be aware of it.

If you already use crypto, these exclusive promotions can be very rewarding. However, switching your payment method solely to claim a bonus can lead to multiple complications.

Using banking methods that you are unfamiliar with or worse, do not understand, can cost you in the long run. Changing your payment method often affects your deposit and withdrawal minimums, fees, and transaction times.

At best, you risk having to wait longer for your money if you switch to a payment method with a slower payment speed. Alternatively, you may be required to pay higher transaction fees associated with your new methods.

Furthermore, if you unknowingly change to a crypto that is volatile, you could even lose money if the currency declines in value while you are working through the bonus requirements.