Do Free Spins Really Cost Online Casinos Money?

[shanz]

When you just start playing slot games, you often get impressed by bonuses and how you can benefit from an online casino as much as possible (especially if you’re playing on a tight budget). Because of that, many sites consider diversifying bonuses and focus on providing free spins as part of their marketing strategies.
And as you know, the free spins are usually under one of these categories:

• Free spins no deposit
• Free spins no wagering
• Deposit a certain amount and get FS

Now the real question is: how do online casinos manage to give FS to new players? Is that free of charge, or does it cost them money?
Well, let’s break down a simple example of 10 free spins with no deposit requirement and see this from the casino's perspective:

• Suppose a slot (of your choice) has a min spin value of $0.10.
• That means 10 spins = $1.00 total cost to the casino.
• With an RTP of around 96%, players on average win back about $0.96.
• To balance this out, casinos add wagering requirements (like when a casino requires 30x your winnings).

So the real cost of 10 FS is abt $1 per player.
Here’s how online casinos manage that cost without losing money:

• Casinos often get discounts from slot providers (NetEnt, Pragmatic,...), so a $0.10 spin may only cost them $0.05.
• Most free spin winnings are small, and many players reinvest instead of withdrawing.

As you may understand now, free spins aren’t really a “loss” for online casinos, they’re a marketing investment, just like ads. However, when players use the same FS promo or code multiple times, their accounts get suspended (and sometimes they risk losing their funds)... simply because every single spin costs money for online casinos.

What about you.. Would you rather take 10 free spins with no wagering requirements, or double that amount with wagering requirements, and why?

[Cointxz]

What about you.. Would you rather take 10 free spins with no wagering requirements, or double that amount with wagering requirements, and why?

Depending on the amount of spin and the requirements to claim it. Some casino offer a free spin with decent total value without a ridiculous wagering requirements.

Free spin value can go up depending on the amount of deposit. But in general I will take no wagering requirements since the typical wagering requirements is x30 which is not worthy the risk of completing it just to double the rewards.

Even 10% of the rewards only without wagering requirements is already good. 

[Oshosondy]

Winning is too but its the earning it that makes it all worth it at the end of the day. Just saying. I feel like people look at it the wrong way, especially gamblers.

Free spring without any wagering requirements is good for me than free spins that will have wagering requirements. Wagering requirements that the casino set will most likely just lead to losses. Just know that the more the rules, the higher the chances to lose. That will make me prefer no wagering requirements free spins.

[Ojima-ojo]

Winning is too but its the earning it that makes it all worth it at the end of the day. Just saying. I feel like people look at it the wrong way, especially gamblers.

Free spring without any wagering requirements is good for me than free spins that will have wagering requirements. Wagering requirements that the casino set will most likely just lead to losses. Just know that the more the rules, the higher the chances to lose. That will make me prefer no wagering requirements free spins.

I agree that any bonuses that have at least 1x wagering requirements is ok for me, unlike those that come with higher wagering requirements that make it impossible for gamblers to make anything out of the bonuse that is been offered to them, majority of the free spins get lost along the way without receiver being able to meet the withdrawal or none wager required balance.

This expectations that one received free money is an elusion and the gambling sites knows about it, this is why any form of bonus is under the marketing section of the casinos, it means the casino gains in the end of everything.

[andywolfer]

Personally, I’d go with fewer free spins but no wagering requirements. It feels more transparent and whatever you win is actually yours. Bigger offers with heavy wagering often look good upfront but end up frustrating in the end.

[gunhell16]

Most likely, it still depends on the casino on how they implement that for their gamblers who frequently play on their platform.
Based on my own experience with free spins I’ve received from casinos, I’ve never actually won using FS.

Most of the time, I win not because of the free spins I got, but rather from my regular gambling sessions. And whenever I do get lucky while playing,
it happens during those normal plays though, to be fair, I only gamble once in a while, usually just a few times a week.

[Taskford]

Winning is too but its the earning it that makes it all worth it at the end of the day. Just saying. I feel like people look at it the wrong way, especially gamblers.

Free spring without any wagering requirements is good for me than free spins that will have wagering requirements. Wagering requirements that the casino set will most likely just lead to losses. Just know that the more the rules, the higher the chances to lose. That will make me prefer no wagering requirements free spins.

Yeah if those freespin given doesn't have any wager requirements involve then its good. Since there's good chance that people can able to pull out some winnings from their casino and with this it might cost them something, if it happens that lots of people win by using those free spins they give to their gamblers.

But if there's wager requirements involve which is usually happening in the scene? I think it will not give them much bigger effect especially that most of their gamblers would just drain it.

Same as what you prefer, but its rare to see  that since if the casino implement this then there's good chance that they might experience lots of abuse.

[danherbias07]

I'll take that double the amount with a wagering requirement.

It's not like I will just do a hit and run. I will come back to play more if I like the service of the online casino. It's possible that I will reach the wagering requirement in no time.
Free spins that are given are mostly full of bad luck. It's like it was made to give nothing or lower than the price of it if bought. I have never had any good luck with free spins that were given only, and I think it's made that way to avoid losses from the business.

[MAAManda]

Would you rather take 10 free spins with no wagering requirements, or double that amount with wagering requirements, and why?

Normal FS that crypto casinos give are only around $0,1 - 0,2 per spin, so it won't bring you anything unless you're really lucky. Even if you do get lucky & win $5 from the FS offered, you'll face another challenge. That's the usually high minimum withdrawal. You'll be lucky if the minimum is $10, but some reputable sites have it at $20. So, for the choice you gave, I would take double with wagering requirement, at least it will increase my chances in the next spins.

[Z_MBFM]

Winning is too but its the earning it that makes it all worth it at the end of the day. Just saying. I feel like people look at it the wrong way, especially gamblers.

Free spring without any wagering requirements is good for me than free spins that will have wagering requirements. Wagering requirements that the casino set will most likely just lead to losses. Just know that the more the rules, the higher the chances to lose. That will make me prefer no wagering requirements free spins.

In case of free spins, you must fulfill Wagering, it is mandatory. Free spins are given only for the marketing of a casino platform. So there will be a big requirement of Wagering here. No wagering platform will give you free spins. And the winning ratio in these free spins is much less so that everyone can enjoy it but not win much money. And this is how casino platforms continue their marketing. And the reason for choosing the free spin strategy is that it attracts new gamblers, especially those who are new to gambling. They think that these free spins will give them the opportunity to gamble for a long time, which can help them win something for freely

[ralle14]

I'll always take the free spins with no wagering requirements. I don't mind playing with fewer spins if it means I don't have to force myself to clear wagering requirements.

A few years ago, I recall opting for a free spins with a manageable x5 requirement, but even with the reduced wagering requirement, I still failed to clear it after most of the spins ended up being a dud.

If the casino has a very high minimum withdrawal, then i'd probably consider the double free spins, and I might as well try my luck to hit a chunky multiplier.

[Fortify]

The simple fact is that casinos have determined, through statistical analysis, that more (maybe even most) players will pour in more money than is taken out by offering free spins. I would even hazard a guess that free spins might trigger more bonuses than usual, because again - many players never actually end up withdrawing any money from a casino. It can also be used to expose players to different slot games that might suck them in even further, because it costs them zero and they have nothing at risk to try something new. Everything casinos do has been evaluated at a psychological and cost benefit level to work for their advantage.

[bitbollo]

You can consider this kind of activity as a simple way for advertising their operations and finding new players!
In some financial sectors, new basic users have a cost of acquisation of 200 dollar or more. Imagine you can get few few spin or just offering a basic bonus.
Of course, most of people will not continue to play but the that remains will repay easy any investment made.

[EluguHcman]

Now the real question is: how do online casinos manage to give FS to new players? Is that free of charge, or does it cost them money?

Every casino companies have their own unique criterias on bonuses which defines players qualifications players to be entitled to it.
These criterias maybe characterized on players deposits, looses or how much long you have been playing and also the tier you are in the platform. While some may give rewards to new members as a welcomed offer.

So it all depends the area of your qualifications that determines the rewards you get.
The casino is ever ready with enough backup funds to comply payments with players, so the free spins does not cost them extra.

[Pandu Geddon]

What about you.. Would you rather take 10 free spins with no wagering requirements, or double that amount with wagering requirements, and why?

If I am ready to try slot games, then I have funds that I will deposit. Free spin offers will only make gamblers feel happy with what they get, especially if there is no minimum deposit requirement.
It is just a strategy to attract new users. Without a deposit, just create an account, and they can try their luck. The casino will not lose from this. Besides, not many slot users manage to win big from free spins.

[Wapfika]

What about you.. Would you rather take 10 free spins with no wagering requirements, or double that amount with wagering requirements, and why?

If the wagering requirements is just x2 then I will take this with double the reward but if the wager requirements is same with the standard requirements of casino bonus which is high then taking the base bonus without wagering is the most logical choice.

Assuming the wager is just x2, I choose it because for sure I will play the bonus money for a couple of rounds to have some so that x2 wager is a decent target while having fun.

[bhadz]

they’re a marketing investment, just like ads.

This is for the most of the giveaways that we receive from casinos. Free spins, free bets, etc.

What about you.. Would you rather take 10 free spins with no wagering requirements, or double that amount with wagering requirements, and why?

Most are going to choose the one without any wagering requirements. Having no wagering requirements is like that it's an actual giveaway and really free at all. Because there is no need to fulfill any requirements at all. So for me, if I'll be given a free spin, I'll take the one that has no wagering requirement. But it's rare to see that because most of the freebies have a wagering requirement to be withdrawn.

[Findingnemo]

Even if it cost them $1 per player it is affordable for the casino because they are spending millions of dollars to advertise their platform in all possible ways to attract players and these bonus events keep the attracted players engaged with their platform which is the next step after advertising so it may cost them money or not but I guess it is worth it which is ehy every casino does that.

[panjul07]

Pretty sure that most casinos must have calculated their promotion wisely to make it worth and effective for them.
Even if such specific promo like free spins cost them some money but I believe it brings more money to casino in overall.
Just like other promotions which is designed by the casino to lure players, the house is basically the one who make more profit eventually.

[Don Pedro Dinero]

...

I think you've got yourself into a mess here that you can't figure out, but it's not that complicated. A business does not usually consider one part of it as an isolated thing. And giving something away for free usually results in more people visiting the business, which in the medium term increases revenue. In that sense, free spins must be considered within a global and calculated strategy, always trying to avoid abuse. If done right, it is profitable for the casino, even though at first glance it may seem like a waste of money when considering that part as an isolated component of the business.

What about you.. Would you rather take 10 free spins with no wagering requirements, or double that amount with wagering requirements, and why?

Like most people, I prefer the first option.