How Do Casinos Afford No Deposit Bonuses?

A no deposit bonus is a win-win situation for both players and online casinos in Australia and all over the world. On the one hand, the players get a free shot at the pokies of a casino, with not just the potential to make a bit of free cash, but also to try out the various games available on the site. On the other hand, online casinos get the opportunity to gain a new customer which is potentially worth a lot of future dollars. However, an interesting question is - do casinos lose money from no deposit bonuses?

Why Australian Online Casinos Give Out Bonuses

do-casinos-lose-money-from-no-deposit-bonuses

There are various kinds of bonus and promotional offers given out by the best online casinos to attract new players on their site, and also to retain existing players. The most common ones are:

  • No Deposit Bonus : As the name suggests, these offers give Australian players free spins (and sometimes free cash) at pokies and other games at an online casino, with the possibility of players making a bit of money for free.
  • Match Deposit Welcome Bonus: In this type of bonus, the deposits of new players are matched (up to a certain %) by the casino, up to a maximum amount. For example, if you deposited $800 in a casino with a 100% match deposit offer up to $500, then your initial balance would be a cash balance of $800 + the bonus balance of $500. This type of bonus is typically spread over the first few deposits and has certain criteria attached to it, the most common being the "wagering requirement" or the minimum amount of wagering that must be done with the bonus balance before you can cash your bonus funds or winnings out.
  • Reload Bonus:This is similar to the match deposit bonus but is eligible for use during reloads - or in other words when you exhaust your welcome match deposit offer and are looking to reload your balance.
  • VIP Rewards & Cashbacks:These are comp-based rewards that entitle players to gifts, perks, and benefits in exchange for points that they earn by spending money wagering on the site. This has the potential of some lucrative rewards for frequent players. Cashbacks are another useful way to make some money in which casinos refund a portion of player losses back to them.
  • Custom Promotions:On occasion, Australian no deposit casino sites will offer free spins or other promotional offers customized to an occasion - for example, "Wednesday Free Spins", "Christmas Cash Bonuses", free-to-enter tournaments, free spins and offers on specific new games that the casino is trying to promote, and so on.

The reason these bonuses are given out is obvious - to get players on to the site and try out the casino's products with the intention of getting them to deposit and play more on the site in the long run. In the end, the house will always win even if the players get a little bit of free cash out of these bonuses in the beginning. The other benefit is that the casino increases its database and network, by using word-of-mouth as a marketing tool - one satisfied customer may quite easily equal five more with positive feedback by the customer to his/her friends or family.

No Deposit Bonus Options for Players in Australia

do-casinos-lose-money-from-no-deposit-bonuses

No Deposit bonuses give out free spins or free cash to new players who need to only create/register an account and do not need to make a deposit to play on the site's games. However, there are plenty of considerations attached to this type of offer. First up, and most importantly, there is a "wagering requirement" or "playthrough" with each bonus. For example, if you won $10 on a bonus offers with a 20x playthrough requirement, you will need to re-invest the $10 back into the site till a total of $10 x 20 = $200 is wagered, and hope that you still have winnings remaining at the end of it. The other thing is that these bonus options have a cap on the withdrawals - players from Australia will typically be able to withdraw a maximum of $100 via this offer. In addition, there are other criteria, such as the bonus spins/cash being eligible for use only on certain games, a low maximum bet amount per bet using these bonus funds, not all games contributing equally to the wagering requirement, and so on. The summary is that while it is certainly possible for players to make a bit of cash, the terms and conditions attached to this type of bonus make it infrequent for casinos to have to pay out often to players, and when they do pay out, it's not a lot. The real benefit of no deposit bonuses for Australian players is that they get to try out the games for free on a site and they get to have a lot of fun without spending any of their money - the winnings at the end, if any, is just a nice icing on the cake.

Do Casinos Lose Money from No Deposit Bonuses?

The short answer to this question is no, simply because whatever little they have to pay out as a result of this bonus is more than made up for by the section of Australian players who continue to take a punt, and spend money, on the site even after the bonus gets over. That said, there are certain occasions when a casino may potentially lose money via these bonuses. These typically happen on the rare occasion that the bonus offer will have very loose cashout criteria attached to it - for example, no (or a very high) maximum cap on withdrawals. This has the potential of making the "onboarding cost" of new customers too high in comparison to future earnings and in these cases, the answer to the question of whether casinos lose money from these bonuses has to be a Yes. However, these generous cashout criteria are few and far between and are generally only offered by online casinos that are new and are looking to attract a lot of customers in a short span of time. Most of the time, the positives from these bonuses outweigh the small cost that casinos have to bear while paying out the bonus winnings. On the other side, players too get the opportunity to have a lot of fun at the site for free, and potentially make a little bit of cash at the end. In short, these bonus offers are beneficial to both players and casinos in Australia.