Opinion: Casino bonuses are undermining player trust

Where traditional casinos were once perceived as smoky dens of inequity, today’s online casinos are regarded by some ““ usually disgruntled players ““ as the scamming cyber-dens of fraudsters. Undeniably, the murky issue of bonuses and wagering requirements is partially to blame.

In the midst of the honest, hopeful (and let’s face it, slightly confused) newbies, the colluders and chip dumpers wait to profit from the one false move a casino makes ““ the open opportunity to exploit an incentive scheme. The problem facing all online casinos is how to ensure we remain on the profitability tightrope, and genuinely engage new players without exposing potential loopholes to less authentic players.

Lack of transparency

Every online and mobile casino has adopted its own approach to new player engagement which is, in part, central to this issue of player confusion and consequent mistrust. On the face of it, casinos appear to have developed similar, if not identical, solutions: ‘no deposit’ or ‘first deposit’ bonuses.

Understandably, casino operators have additionally introduced bonus wagering requirements to protect against fraudulent players and to guarantee a minimum income. Often, however, these wagering requirements are less overt than the promotional offers. Having developed initial expectations, players feel hoodwinked when they later discover there are strings attached ““ and, perhaps crucially, those strings are attached to their wallets.

It seems ridiculous to dedicate so many resources to acquiring a player, then do absolutely nothing to retain them ““ instead levying unrealistic wagering requirements, some up to 500. It really does bring into question market ethics and fairness.

From the casinos’ perspective, a welcome gift, of a bonus, is offered to players on the understanding that it is just that: a bonus. The very definition of the word bonus, as “something that is paid above what is expected”, provides some clarity ““ the bonus is paid in addition to any winnings a player can expect.

Arguably then, casinos are justified in stipulating certain ‘expected conditions’ ““ usually wagering requirements ““ after which the cash equivalent to the bonus will be paid. However, variations, such as individual games and house-edges, mean that these ‘expected conditions’ differ from one casino to another, giving rise to wariness in players, who are unsure what ‘expected conditions’ they will need to meet, before being paid.

Player perspective

The irony is, of course, that trust is absolutely fundamental to the success of online casinos. Players need to be able to trust us with their money; trust that we will provide them with value for that money; trust that our games are random and fair; trust that their information is safe; and trust that we will pay them promptly when they win. If their first experience of an online casino undermines that trust ““ why would they continue to play?

Perhaps there is another, entirely new, perspective we as casino operators should be considering: the longer view. If a player can clearly understand the ‘expected conditions’ and start playing quickly and with low wagering requirements, they are far more likely to risk trying out a new online casino. If they then go on to win and can withdraw their winnings with the minimum of fuss, they are likely to be happy, accepting and trusting of the casino’s ‘expected conditions’.

They are therefore far more likely to return and make further deposits in the future. In addition, whereas some casinos focus on player acquisition, there is strong evidence that player retention through loyalty bonuses can also be highly effective ““ a strategy more casinos could consider adopting, to strike that delicate profitability balance.

Ultimately, we as casino operators have a responsibility to offer transparent ‘expected conditions’ to all players, from the outset and throughout their playing experience. If a player’s first experience of online casinos is a negative one, they are far more likely to avoid online gambling altogether. When this happens, all bets will be off and neither the players nor the casinos will have won.