What Are Cashback Bonuses and How Do They Work?
Online casinos frequently give customers incentives to keep them coming back or to thank them for their loyalty. These incentives vary in type and form, but casino cashback is among the most common ones.
Cashback is a return of a portion of the lost money, bets, or deposits to players. The competition between online casino operators is intense, as they're all trying to attract more players and retain the existing ones. Therefore, you can expect to receive between 5% and even 30% cashback on your losses.
Below, we will give you more information about how cashback works and the different types of cashback offered by online casinos. Also, we will discuss the cashback terms and conditions, its positive and negative sides, and what is so special about this casino bonus type.
Table of contents:
Why do casinos offer cashback?
The main reason why online casino operators offer cashback is that they want to retain their existing members. The competition in online gambling is fiercer than ever. Each casino wants to attract more customers, and to do so, it must offer something better than its competitors.
Cashback bonuses are designed to motivate players. They are supposed to encourage them to keep playing and placing bets on their favorite games. The more active they are, the more they will benefit.
Casino cashback bonus explained
Casino cashback bonuses are reimbursements offered to players for what they lose within a specific time frame.
EXAMPLE
For instance, if you lose $100, a casino can refund you 10% of your money. Therefore, it will add ten cents to your account for each dollar you lose. In the example above, you will get $10 as cashback.
Although some casinos give real money, cashback is mostly paid as bonus funds. Casino cashback bonuses come in different forms, which we will explain below, and each has its terms and limitations.
Before claiming any cashback offers, make sure to read the fine print. That way, you'll know exactly how they work and whether or not they are appropriate for you.
Daily, weekly & monthly cashback bonuses
One of the most popular types of cashback offers is the daily cashback bonus. It enables you to play for an entire day and receive a portion of the money you spend. For daily cashback, operators typically consider all losses from 00:00 until 23:59 on an eligible day. Depending on the promo, a specific cashback day, like Wednesday, may occur.
EXAMPLE
An online casino offers 5% cashback on your daily losses of at least $50 every Wednesday and pays out the cashback the next day. If you play on a Wednesday and lose $100, the operator will credit you the Wednesday cashback of 5% or $5 on Thursday. If you play on a Wednesday and lose $40, you won't qualify for the cashback offer.
Weekly cashback offers have the same basic idea as the daily cashback bonus. But, you get the whole week instead of just 24 hours to use it. You can place big bets and receive back a percentage of your money at the end of the week.
The monthly cashback bonus continues the idea of a set period for the cashback incentive. You can place a ton of bets over the course of a month and even forget that the bonus is still active. By the end of the month, if your losses qualify for the cashback, you'll receive a portion of them back.
Cashback on losses vs. cashback on deposits or bets
It's good to mention that cashback differs in the period it covers but also in the funds it targets. Some casinos may offer cashback of up to a certain amount on your deposited or wagered funds, while others – most of them – will give cashback on your losses.
EXAMPLE
An example of a typical offer would be 10% of monthly deposit cashback of up to a maximum of $200. A player who deposits $50 will receive $5 back in cash. The user will cease receiving cash back once the cashback casino's monthly total hits $200.
Online casinos are aware that losing does not make a player happy. They provide some comfort by giving back a portion of the losses in cash. Moreover, cashback on losses guarantees operators profit, so they are more inclined to offer this type of payback bonuses.
A common offer would be to pay 10% of the losses for the entire week back up to $100. Meaning, if your 10% cashback surpasses $100, you will get the maximum of $100, and the rest is void.
Naturally, these are just examples; every casino bonus comes with individual requirements and restrictions. We will cover those in more detail below.
Claiming casino cashback
Claiming casino bonuses is an important step, as one wrong move can ruin your chances of getting anything at all. Online casinos generally use one of the following three methods to distribute cashback:
- Manually – In this case, the player must manually accept the cashback offer before qualifying for it. This means that you won't get the money back even if you make an eligible deposit or generate enough losses unless you manually opt-in for the deal.
- Automatically – There are online casinos that will automatically credit cashback to the player's account at the beginning or end of each day, week, or month. It doesn't demand anything from the player, which is more practical than the previous method.
- Use a cashback bonus code – Sometimes, you should deposit and use a bonus code to activate a cashback offer. These are usually more restrictive deals that require you to deposit a minimum amount of funds but also to lose a specific amount of cash. If the requirements are met, you will get your cashback.
Unlocking VIP tiers
You will also find multiple casinos where players must meet a certain threshold for them to receive cashback. It develops gradually, much like a loyalty scheme. For instance, players who reach certain VIP levels are given cashback rewards, and each level comes with better offerings.
Pros and cons of casino cashback
The casino cashback bonus is a two-edged sword. It has certain advantages and disadvantages. The pros of getting a cashback bonus are:
- Ease of use.
- No or relatively low wagering requirements.
- You are often always eligible, as long as you're active.
- Real cash withdrawals are possible.
- Comfort when you lose.
- Extend your gameplay.
Regarding the drawbacks, cashback incentives at online casinos are usually time limited. Additionally, not all games in an online casino allow you to play with cashback benefits. Other important drawbacks include:
- To be eligible for the bonus, you must lose money.
- Only a portion of your loss will be reimbursed.
- This bonus cannot be used to offset losses from other casino bonuses or when a withdrawal is still pending.
- Typically, there is a maximum amount you can win and a minimum amount you must bet or lose.
Cashback vs. other casino bonuses
Cashback is different from other casino bonus deals in multiple aspects. We will discuss the most significant features of this bonus below.
Take a look at what sets cashback apart from other casino promotions.
- Unlike other casino bonuses, cashback may be paid in real money. It means you can either try your luck at your preferred casino games once more or even withdraw the money right away.
- Because you get funds, you typically can use them on any games you wish. Free spins and deposit match bonuses often come with much more restrictions regarding allowed games.
- Cashback bonuses typically come without wagering requirements. Therefore, you don't have to meet any conditions before cashing out your money.
- Your VIP level often determines the cashback rate. Thus, loyal customers often get higher amounts of their losses back.
- When it comes to cashback, there is a lot of variety. Therefore, the rules for this promotion may vary greatly amongst different online casinos.
- The term cashback is starting to gain some traction among members at online casinos nowadays. Therefore, it is now widely spread among iGaming operators and bringing extra rewards to players.
Terms and conditions of cashback bonuses
Just like any other casino bonus, cashback bonuses come with specific rules and requirements. To prevent players from abusing the incentives, such bonuses have a minimum entry requirement.
After all, it is not profitable for casinos to reimburse customers who wager just a few cents. Also, in some casinos, only players with a specific status in a loyalty program may be eligible for cashback.
Additional bonus terms and conditions of cashback deals include:
- The cashback percentage usually ranges from 5% to 30%.
- If paid on losses, there may be a minimum loss amount required for players to be eligible for cashback.
- The format of the bonus varies depending on the operator's policy.
- The cashback might be real money that the player can use to place bets or withdraw or a bonus reward that needs wagering.
- Users may have limited time to use and wager their cashback if wagering is required.
- The cashback amount is limited, and players cannot receive more than the specified maximum.
Does everyone qualify for cashback?
Each online casino has unique rules and requirements, and that also applies to cashback offers. Whether you qualify for cashback or not always depends on the offer and its terms and conditions.
All in all, reading the T&Cs attached to a specific cashback offer is vital, and it will provide you with all the necessary information.
Do all casinos have cashback?
Not all casino sites offer players cashback bonuses. But that's fine. After all, with so many different casino brands on the Internet, it would be boring if all of them offered the same thing. As cool and beneficial as these incentives are for players and casinos, some operators choose not to offer them.
However, an online casino that doesn't offer cashback is not necessarily bad. As we said earlier, each operator is trying to provide something new and be better than its competitors. Thus, every casino offers different things to its users. Not better or worse, but differently.
So, even if your chosen casino doesn't offer cashback, make sure to examine the list of available promos like casino tournaments, free spins, or no deposit deals. You may still find something exciting and unique.
