Why Online Casinos Give Out Bonus Money

Patrycja Patrycja Knows ins and outs of Bingo, Casino & Specials Betting
Updated Updated: September 3, 2020
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The fact that online casinos generously give out bonus money probably bothers many novice casino players. Is this some kind of scam? Why is someone giving us money for nothing?

In this article, we will tell you what interest casinos have in giving away welcome bonuses and whether this business is profitable from the player’s perspective.

Huge Competition

There is a lot of competition in the online casino market. Launching an internet casino is easier than ever, which is why literally thousands of new entities are created every year. Both the existing and the companies just entering the market have to somehow attract new players. Their capabilities are limited as they all offer roughly the same games from the same game producers.

Welcome bonuses are one of the areas where a given casino can stand out as a plus. By offering a large bonus of 100 or even 200%, the company will attract more players than others with a weaker offer. This drives competition and makes casinos increasingly competing with each other.

Mutual Benefits

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This situation is not bad at all from the players’ perspective. They get good bonuses and free spins, thanks to which they significantly increase their capital from the very beginning. This means, in the first place, less risk of loss and a greater chance of profit. Nothing is more fun than free money, right? Currently, casinos offer up to several thousand NZD in welcome bonuses. This clearly is a large cash boost and it is no wonder that it tempts many.

Competition from the casino perspective is also positive. It motivates them to offer the best possible conditions for players and makes the whole industry grow. With multiple bonuses available on the market, casinos attract new players at an unprecedented pace. A large proportion of them then returns to them with further deposits.

Free Money Is Never Free

Of course, casinos are not charities and they don’t give away money for free. Almost every bonus has certain conditions under which we can withdraw the money to our account. All slots available at the casino have an RTP rate. Usually, it is in the range of 96 to 98%. This means that the casino’s margin is the few percent that is missing up to 100%.

In other words, casinos get richer by trading our money, and the thousands of turns that we generate, keep them profitable and functioning. Gambling has a certain element of randomness in it. This means that some players will win and some will lose a certain percentage or even all of their funds. This way, no matter how generous the bonuses are, online casinos will always make a profit.

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