Do Free Spins Really Cost Online Casinos Money?

[Cantsay]

If you take a look at those free spins you’ll see that there are several requirements that are attached to them so even if those new users are given no deposits free spins they’ll still be required to hit a certain wagering requirement before they’ll be allowed to make any withdrawal. And out of the numerous accounts that recieved those free spins only a handful of them actually meet the requirements and the rest of them don’t and during the process of them chasing the spins they’ll eventually hit decide to settle down and continue to use the site and that’s one way the casino make back their money aside other numerous others.

[Darker45]

Free spins are investments on the part of the casino. It may cost them but not that big, and it's generally beneficial to them. Remove it and you'd probably be left behind, forgotten, in a market that's highly competitive.

But, most of all, who wins in slots really? Nobody. Nobody goes home with profit. It's always the casino that's winning. Free spins are just a way for casinos to entertain players, to somehow lengthen their stay, to distract them from the fact that the casino is slowly but surely milking them.

Anyway, I'd take the double amount but with wagering requirements. But if the wagering is 30x, I'd rather take the 10 spins.

[alegotardo]

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

Exactly... there is not such thing as a "free lunch"! Casinos always have a calculation behind any promotion... after all, they profit by mastering math and statistics. And besides the provider discounts, they know that most players end up reinvesting, either out of excitement or because the winnings are rarely large enough to warrant immediate withdrawal.

And about fewer or more spins, I think it depends of the player... for casual gamblers with a tight budget and lacking the patience to meet high goals, free spins with fewer requirements are more attractive because they're a good way to test the casino, see how it works, and if you are lucky, walk away with a profit. I'm that kind of player
But its quite different for those who play a lot and want to double the number of spins to have even more chances of triggering other bonus features, extra rounds, and progressive jackpots.

[maydna]

I would rather take 10 free spins with no wagering requirements than double that amount. That will be difficult for me because I don't have a good track record of doubling the amount. I mostly lose money when I insist on doubling the amount. So I don't think that is a good idea for me to try.

But I will be better if I don't take any bonus if there is a requirement needed. That makes it difficult to fill the requirements. Don't forget that activating the deposit bonus may have some requirements and sometimes the requirements are difficult to complete.

[alastantiger]

If you take a look at those free spins you’ll see that there are several requirements that are attached to them so even if those new users are given no deposits free spins they’ll still be required to hit a certain wagering requirement before they’ll be allowed to make any withdrawal. And out of the numerous accounts that recieved those free spins only a handful of them actually meet the requirements and the rest of them don’t and during the process of them chasing the spins they’ll eventually hit decide to settle down and continue to use the site and that’s one way the casino make back their money aside other numerous others.

Free spins are a marketing strategy that if it wasn't working, the caisnos won't continue to make use of it. You might think the caisnos aren't making a profits because they're giving away free money to their customers but we don't realize how many people try to chase that free spin and how much they spend in the process of doing that. Some gamblers also spend the whole money they realize from their free spin on the caisnos because they have the feeling that it's free money hence they don't have to be careful when gambling and because of this, they lose everything. There are some caisnos that get lots of losses because of lose ends tomorrow n their casino and hackers take advantage of the free spins but apart from this cases, twh rest caisnos are making a profits and that's why this marketing strategy will continue to be functioning for both new and old caisnos.

[yahoo62278]

You're being given free spins basically to try out the casino in hopes that you'll like the place and start depositing. It's not rocket science and usually comes with wagering terms that barely anyone completes. Yes it's possible that some players complete the terms but most likely if so the casino isn't really losing that much. 

[Outhue]

I laughed while reading through this topic because it sound stupid to believe that casinos are even losing money, what money though? Casinos use the biggest money on promotions and adverts, they are the highest paying customers to promoters and advertisers, the money is always loaded, how much can free spins really cost them? How many gamblers are winning big with free spins? I haven't seen any.

The last time I read through something similar on this forum I can see few people getting lucky with free spins from 100 to 1000+ in dollars, how is this even considered money spent when it is coming from a casino? Some people still don't know how much casinos are making, this is one of the most lucrative business in the world.

[junder]

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.

It is certain for people who like to gamble that getting free spins is something that can attract them and make them happy at first because maybe the final result can be disappointing. What you said is true, this is a strategy to attract players, especially for players who have high hopes for gambling, maybe they will trick it more than once to get these free spins, for example by creating multiple accounts.

[Free Market Capitalist]

I laughed while reading through this topic because it sound stupid to believe that casinos are even losing money, what money though? Casinos use the biggest money on promotions and adverts, they are the highest paying customers to promoters and advertisers, the money is always loaded, how much can free spins really cost them? How many gamblers are winning big with free spins? I haven't seen any.

That's right, casinos use free spins as another type of perk and promotion because they make them more money. People are attracted to free stuff or other perks, and maybe a few get lucky, but the vast majority just end up leaving more profit for the casino.

The last time I read through something similar on this forum I can see few people getting lucky with free spins from 100 to 1000+ in dollars, how is this even considered money spent when it is coming from a casino? Some people still don't know how much casinos are making, this is one of the most lucrative business in the world.

Well, because of your question, I looked into Stake.com's revenue and found the following:

Stake.com generated $4.7 billion in revenue in 2024, despite crypto gambling being unavailable in the United States, United Kingdom and much of Europe.

From there, we would have to calculate the net profit, and then take into account that most of the sites we see on the forum will have a lower revenue, or much lower than that, but to give us an idea of the magnitudes.

[₿itcoin]

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

To your question, I will definatly take 10 free spins with no wagering requirements every time. While it is tempting to double up with wagering requirments it actually ruins the real value of the bet. you know, the casino tilts gamblers balance through wagering requirements. I actually dont know when is it worth accepting the extra risk & complexity of WR terms instead of just going for the no-WR deal,, LoL.

Whatever,, could you please tell me which casino actually  offer no wagering requirements free spin, huh ? ? i didn't find any...

[Dr.Bitcoin_Strange]

I know that free spin does not cost the casino much that's why they utilize it as a marketing tactics to attract gamblers. If they were actually spending much on it, they won't make it easily available and secondly, what ever it cost them to give it to their customers, how many gamblers are winning a very good amount from it? Most gamblers don't even meet the wagering requirement.

[Fivestar4everMVP]

[/list]
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?

Thanks for the explanation on how free spins work, this is something I've never really thought about, I've never even imagined that freespin could be something that slot providers charge the casino for, like sell to the casino, I've always thought that slot providers list their slot game on the casino who act as a middle men, providing the platform through which slot providers connect with slot players, through the slot game, the casino provide the infrastructure and ability for the players to play their favorite slot game, if the player wins, the slot providers are the ones to pay the winner his money and also pay the casino commission for every spin from a slot player, so the casino gets to make their money whether or not the player won or not..

Isn't this why when a player wins a good amount of money from a slot game, and the casino is taking time to credit the winning, when the player tries to find out what is going on, the casino will give a response that they are still waiting for the provider to verify that the winning is legitimate before they credit the account the won the game..
Am I even making sense? This is not correct?

[Ishicryptic]

If you take a look at those free spins you’ll see that there are several requirements that are attached to them so even if those new users are given no deposits free spins they’ll still be required to hit a certain wagering requirement before they’ll be allowed to make any withdrawal. And out of the numerous accounts that recieved those free spins only a handful of them actually meet the requirements and the rest of them don’t and during the process of them chasing the spins they’ll eventually hit decide to settle down and continue to use the site and that’s one way the casino make back their money aside other numerous others.

Nothing is actually free when a business that is established to make profit is offering something, their aim will be to get new customers and increase activities for existing customers. When a casino offers free spins there is always a condition somewhere else that you will wager something so if you look at it critically you will understand that it is a marketing strategy. What free spins can cost a casino cannot be compared to what they will profit from the gambler on the long run so it is a win win for the casino if the gambler continues to use their services. The casinos have the house edge and it means that they will always recover loses.

[Cantsay]

If you take a look at those free spins you’ll see that there are several requirements that are attached to them so even if those new users are given no deposits free spins they’ll still be required to hit a certain wagering requirement before they’ll be allowed to make any withdrawal. And out of the numerous accounts that recieved those free spins only a handful of them actually meet the requirements and the rest of them don’t and during the process of them chasing the spins they’ll eventually hit decide to settle down and continue to use the site and that’s one way the casino make back their money aside other numerous others.

Nothing is actually free when a business that is established to make profit is offering something, their aim will be to get new customers and increase activities for existing customers. When a casino offers free spins there is always a condition somewhere else that you will wager something so if you look at it critically you will understand that it is a marketing strategy. What free spins can cost a casino cannot be compared to what they will profit from the gambler on the long run so it is a win win for the casino if the gambler continues to use their services. The casinos have the house edge and it means that they will always recover loses.

Anything a business does is already being calculated, the only time a business loses when they do marketing or when they do some form of promotion is either they didn’t calculate well or they whole thing was done by a noob who isn’t really experienced about it.

In the case of casinos, anything about their bonuses is never free - I think I have only seen one site that gave an actual free spins and allowed users to withdraw their winnings without having to wager it and they ran out of business within 2 days because people abused it and they spent a whole lot of money on that thing and no one stuck to the site after they got the bonus.