Casino Bonuses: An acquisition strategy built on sand?

Since the launch of the first online casino, bonuses have been one of the most effective acquisition tools. The chance to receive extra money is always an appealing prospect. And a bonus is the perfect way to play on that psychology. But due to the restrictions put on these bonuses (like wagering) – operators are relatively safe.

Unfortunately, there are new obstacles that have diluted the effectiveness of bonuses. Due to these changes, online casino firms may have to look at unique ways to pull in those punters. In this article, we are going to show you why operators should be looking at different options.

#1 Players are getting smarter

It was only a matter of time before our players started to question the terms behind our bonuses. Wagering requirements – while an effective fail-safe mechanism – are universally abhorred by the casino community. You only have to do a quick search on one of the many casino forums out there to see it. In these messaging boards, you will find groups of people tired with shady conditions and restrictive practices.

#2 Terms are out in the open

In the UK market, operators now have to be more transparent with the terms and conditions of bonuses. This includes having significant terms in sight of any call to action – with direct links to the full terms. This has now made wagering – and bonus mechanics – more obvious than ever. This links to #1 – not only are players getting smarter – but they are also more well informed.

#3 Taxes eat up revenue

If a bonus was an effective acquisition tool, then a no deposit bonus was almost a guaranteed sign up (with the right traffic). In 2017, a new tax was introduced to the UK market which killed off these popular bonuses. Any operator offering a free bet or bonus would have to foot a 15% tax bill. With this move, it becomes more likely that bonuses could receive a heftier tax.

While bonuses are becoming increasingly more difficult to manage – they remain one of the best ways for popular online casinos to find fresh blood. Whether this trend continues – remains to be seen. But it does look more like we are building castles in the sand. It may be time to think about new and innovative ways to keep our members playing at our sites. Or think about new markets entirely.