Over 63% of gamers who play online wish to receive personalized offers, yet most operators still think the reward spins should be the primary tool for acquiring customers. These are not gifts but a planned approach that includes several conditions such as wagering requirements, winning limits, and expiry dates.
It is essential for the operators concerned with the acquisition costs and the affiliates discussing the bonuses to understand how they work.
This guide demonstrates all aspects of the mechanics and the compliance needed and explains why bonus spins are a vital part of the operator’s strategy.
What Are Free Spins?
The term “free spins” means just what it says—spins in slot games that are free. However, there is a catch.
To put it simply:
These are bonuses that let you spin the reels without using your money. You spin, win, and keep what you have won. Sounds simple, right? It’s not.
Let’s look at an example to understand this:
The operator is giving away 50 spins for free on “Bonanza Megaways”. You can use them immediately. After spinning 50 times, you win €100. Fantastic, right? Not so fast. You need to wager the €100 at least 35 times (€3,500 total wagering) before you can withdraw your winnings.
The Key Catch:
Wagering Requirements—Bonus spins have their conditions. You must fulfil the requirement of making 20 to 50 times the amount wagered before withdrawing. In most cases, this will be impossible.
Deadline:
The spins must be redeemed within 7 to 30 days. Otherwise, you forfeit them.
The difference between cash bonus and free spins:
A cash bonus means you get an amount of money on top of your account (it can be spent everywhere). Bonus spins come with restrictions on use (you can only play one specific game with them).
How These Bonus Spins Work
They may appear easy to understand. In practice, however, things are more complicated. Here’s how it works:
Steps in Order
- Claim: You receive 50 bonus spins (when you sign up, deposit, or get rewarded)
- Play: You play the game (a particular slot determined by the operator)
- Win: You win €100 with the spins
- Wagering Requirements: You need to wager €100 at least 35 times, which means €3,500
- Expiration: You have 30 days to use the free spins
Let’s look at a mathematical example:
Suppose you win 50 spins for free at €0.20 per spin. Your total gain is €50. However, there’s a wagering condition of 35 times. This means you need a total wagering of €1,750 (€50 x 35 ). If you lose while wagering, the winnings will be gone.
Winning caps (the real problem): Why would the company take a loss? They limit free winnings. “Max win €50 from free spins”. This means that even if you won €200 using the spins given for free, the maximum amount you can keep is €50.
Game limitations:
These spins can only be played on select games, which are typically low-volatility games which the operator favours. They are not valid on any high-payout games.
The truth:
The majority of players fail to meet wagering requirements. They lose all their winnings while the operator gets to keep them.
Types of Free Spins Offers
Bonus spins come in different varieties. Operators use these spins tactically depending on the phase of the player’s lifecycle.
Welcome Spins:
They are a new player bonus. Players might receive 10-100 spins for signing up. They help new players complete the registration process.
Deposit Spins:
Make the first deposit of €50 and get 25 free spins. They encourage players to make the first deposit.
Reload Spins:
Existing players can receive bonus spins every time they make a deposit. It is used to keep players retained.
Loyalty or VIP Spins:
Repeat players are rewarded with bonus spins. Weekly or monthly free spin offers are made to high revenue generating players.
Tournaments Offer Spins for Free:
Promotional events like: “The Spin tournament with a prize pool of €10k.” The limited period of excitement helps drive interest.
No Wagering Spins:
It is a rare type with no wagering requirements. Highly competitive and problematic for operators to sustain profitably.
The model:
The new players have low-value spins (10-50). The loyal players get high-value spins (over 100). This means the operators spend more on retention than on obtaining new customers.
Regulatory Landscape
Bonus spins, being a component of the iGaming industry, are not free from regulations. Regulators take the terms and conditions, wagering conditions, and fairness quite seriously.
United Kingdom (UKGC):
Free spins must disclose terms and conditions before they can be claimed. Wagering requirements must be reasonable and transparent, typically limited to 20-40 times. Maximum winnings limits must be disclosed.
Malta (MGA):
Much like the UK, the terms and conditions cannot be negotiated, and the wagering requirements should not be unreasonable and accordingly disclosed.
Curaçao (GCB):
There are milder regulations in place than in Malta. The restrictions on the maximum staking amount have been lifted. However, some important features of the T&Cs still have to be disclosed.
Essential Points for Compliance:
- Terms and conditions should be visible prior to making a claim and should not be obscured.
- Clear information regarding wagering, including the figures (20x, 40x, etc).
- Information about maximum winnings should be given (i.e max €50 from a €20 spin).
- Clearly spelt out expiration periods (i.e. 7, 14, 30 days).
- Restrictions on games should be provided.
Warning Signs to Look Out For:
- Your terms and conditions may be vague (‘terms apply’).
- Wagering requirements may be much higher than the normal requirements (over 100x).
- Hidden win caps in place.
- Expiration time not visible.
- Misleading claims about ‘free money’.
The bottom line:
It’s necessary to ensure a transparent approach. Any company hiding terms will be held responsible for such an act.
Why Operators Use Free Spins
Just because it’s free doesn’t mean it’s charity. They are a strategic method for operators to gain new customers, retain existing customers, and control risks.
Player Acquisition:
These spins make it easier for players to sign up. When a new player hears about ‘50 bonus spins,’ he assumes that easy money is coming his way.
Risk Control:
Wagering requirements and winning caps mean safety for the operator. If a player wins €100 but must bet €3,500, he will fail to do so, and the operator will keep the difference.
Retention Tool:
Loyalty spins ensure that the customers keep playing. “Spin 25 times this week” means continuous visits. This ensures an increase in player lifetime value.
Data Treasure:
Free spins provide information about player preferences. It reveals the games they play, how they bet, and what amounts they deposit.
Competitive Requirement:
Each operator provides such functionality. It is necessary in case one wants to retain customers in this highly competitive market.
Quantity Over Quality:
Free spin players are not of the same quality as depositing players. However, the volume makes up for it. Finding one good player is better than ten free spin hunters.
Final Thoughts
In practice, “free spins” act as acquisition and retention tools as far as operators are concerned, as they have stringent requirements. Affiliates can take advantage o them as effective marketing tools but must be sure to disclose terms and conditions.
It’s important for an operator to understand the rules on winnings, betting limits, and expiry to manage liabilities and for affiliates to be able to convert traffic responsibly and ethically.
Help Section
What are free spins in online casino games and how do they work?
Spins given for free are defined as the special feature provided in slot machines which allows players to play for free. However, the winnings from these spins need to be wagered a certain number of times, usually between 20 and 50 times, prior to cashing out the money won.
What wagering requirements are attached to spins bonuses at online casinos?
Online casinos, in most cases, require players to wager their winnings obtained through spins 20 to 50 times before they can withdraw any funds. If, for instance, a player wins €100 in bonus spins while there is a 35x wagering requirement, he or she will have to wager a total of €3,500.
What is the difference between free spins and a cash bonus at an online casino?
A cash bonus is money which can be used in different games. The spins are limited to a number of slots decided by the operator. Cash bonuses have the same wagering requirements as these spins, but the latter do not allow winning money to be used in a variety of available methods.
Do these spins expire, and what happens if you don’t use them in time?
Certainly, most no deposit spins will come with an expiration period of anywhere between 7 to 30 days from being awarded. If the spins are not used within this time period, they are forfeited completely. Companies operating legally in regulated markets have to clearly mention the expiration information.
Are no-wagering free spins better for players than standard free spin bonuses?
Bonus spins without wagering are very profitable for gamers as they let players withdraw their winnings without having to fulfil turnover requirements. Nevertheless, they are not common, and operators have problems sustaining them, which is why they appear less often.
