What Is a Cashback Bonus?
It is very popular nowadays for a betting site to offer cashback bonuses to players as part of their incentives to gain new customers and retain existing players to keep them gambling on their site. A cashback offer or money back promotions, as they can often be referred to, do exactly what the name implies. The bonus allows the customer to get the stake, or a percentage of their stake back on a placed bet if the bet does not win. These are obviously very attractive offers for customers as it allows an element of insurance or consolation if the placed bet does not win.
Cashback promotions can come in varying forms, some betting sites include a cashback offer as part of their welcome bonus, others offer cashback offers on specific sports or something specific occurring in a particular sporting event. For example, when football betting some of the best betting sites offer a cashback bonus if the result of the game finishes 0-0. Punters who have placed a bet on a particular team to win the match can expect to have their stake returned.
Another way a sports betting site or casino may reward players with a cashback bonus can be through a loyalty or VIP programme whereby the betting sites reward regular or high roller customers by offering a percentage of their bets placed back. The amount of the cashback can vary between betting sites, from 5% to 25% cashback on any bets over a certain period of time, either daily, weekly, or monthly. If you were using this cashback bonus on sports betting, you would get a percentage of what you have lost back. For example, you bet and lose £50 on a team to win a match, and the cashback bonus for you for that week is 10%, so you will get back £5 as 10% of your loss.
It is important to note that nearly all cashback offers although come without too many requirements, cashback is almost never paid out in real cash but will instead come in the form of a free bet or betting credits that you may only use at that particular betting site.
Why Do Bookmakers Offer Cashback and Free Bet Bonuses?
It may sound like terrible business sense that a bookmaker offers players who are losing money a cashback bonus. But in the long run, it makes good business sense. It is a retention tool and also encourages customers to continue gambling and bet more.
A lot of betting portals attach their cashback betting offers to loyal or VIP customers. So the customer has to attain a certain ‘status’ within the bookmaker before they can receive a cashback bonus.
When you look at the numbers, most of a bookmakers revenue is profit from customer losses. Paying back a small percentage of this to keep the customer is not only a clever way to keep them. But it is also a good way to gain referrals to their bookmaker.
If someone was betting with three or four bookmakers, the one they are more likely to recommend is the one that they will gain something back from their losses from.
What are the different examples of Cashback Bonuses?
Cashback as Part of a Welcome Offer
An attractive welcome bonus or new customer offer is the offer of a cashback bonus upon making their first qualifying bet. Each betting site will have its own particular offers, it may be cashback or it could be advertised as a risk free bet allowing players to get a refund on the first bet they place if the bet does not win.
Sports Betting Cashback Offers
Sports betting cashback offers are very popular, especially when betting on football or horseracing. Betting sites constantly update their promotions, creating some form of betting cashback to keep their customers playing. A common example of how to earn cashback from a horse racing bet would be where the bookmaker will return the players stake if their chosen horse loses by less than a length, or a percentage of the stake returned if the horse finishes in second place. Another example of sports betting cashback offer could include seeing your stake returned in the form of a free bet if your outright bet winner finishes second or 3rd in a major golf tournament.
Cashback for betting on Specific Event
Online betting sites also offer a cashback bonus when sports betting on a specified event occurring during a specific event. For example, if a particular horse falls during a race the bookmaker will return the stake of punters losing bet, or in football, if specific footballer scores during the match or receives a booking, then the bookmaker will return the stake of players losing bets. This particular type of bonus is interesting for the customer as even if their initial wager does not win, an event that they have not bet on occurring might see them get a return on their funds.
Cash Back in the form of Free bets
As mentioned in the paragraphs above, many cashback deals come in the form of free bets rather than cashback as real money, especially in the sports betting industry. The difference being, withdrawal of real money cashback is possible without wagering requirements. Cashback as a free bet requires the customers to continue to use their site by wagering the free bets.
It’s very easy nowadays to earn cash free bets from cashback promotions as most sports betting sites now provide them. The most commonly used cashback offer in football betting is the Acca Insurance bet. If one team selected in the Acca does not win, the stake or a percentage of the stake will be returned as a free bet.
Are There Any Special Conditions to Betting Cashback Bonus Offers and using a Free Bet?
As with all bonus offers, there will usually be conditions. Although cashback offers and free bets are not subject to stringent requirements like other bonus promotions. There will still inevitably be some rules you need to adhere to.
Some sports betting sites restrict certain games in their betting cashback offers, and some may restrict certain peak playing times. The wagering requirements for a cashback offer, for example, can be as low as wagering the bonus credited one time. This is a lot lower than a deposit and no deposit bonuses which can sometimes be up to ten. There may also be a maximum betting limit to the amount of cashback a customer will receive.
Is It Possible to Have a Cashback Bonus as a Loyalty Programme?
A lot of bookmakers offer cashback bonuses as a way to reward VIP or loyal customers. They can do this in a number of ways. Sometimes the bookmaker will offer players a cashback bonus after they have been with them a certain amount of time. Sometimes it could depend on deposit and sometime it could just come down to what bets you place online.
Loyalty and VIP customers will usually either sign up to the programme by having a cashback bonus. Most bookmakers will use this tactic so that they can retain customers, and keep the big fish in their own pond.
What Are the Positives of Cash Back Bonuses?
- You can minimize your risk with cashback deals – Betting online is always going to carry some risk, even if you are a very careful player and stick to good odds. You are still at risk of making a loss if the bet doesn’t go your way. The most experienced sports bettors can still make a loss, so it is a good benefit if you can recuperate some back.
- You can work your way up the ladder – If you are in a VIP or loyalty programme, it is likely that your cashback bonus will go up every so often. Or after you have played for a certain time or lost a certain amount. Some online sports betting sites offer up to 25% of your loss as a cashback bonus.
- Cashback deals are easy to understand – A lot of online betting deposit bonuses and no deposit bonuses can become very confusing. However, a cashback betting bonus is easy to follow, it is just a percentage of a loss.
Negatives of Cashback Bonuses
- You are still making a loss – Although it is a nice thought that you are going to get some of your cashback from betting. When you get a cashback bonus, you have still, essentially, made a loss whilst gambling. You will receive cashback, real money or free bets or get a percentage of cashback on that loss, but it is still not the full amount and you will still be out of pocket.
- You could be subject to lengthy wagering requirements with cashback deals- Most online bookies have wagering requirements that are a lot less heavy-handed than the wagering requirements for their other offers. However, this doesn’t mean that strict wagering requirements do not exist for cashback bonuses. Some sports betting sites can ask you to wager the bonus up to ten times before you cash out meaning added gambling time. If the only bookmaker you qualify for a cashback bonus with has such wagering requirements, it may not even work out worth your time.
Overview of Cashback Bonuses
Betting cashback bonuses are a great way for bookmakers to retain and encourage customers to continue gambling on their site, and it does work out mutually beneficial for the customer. To find out if it is going to work for you, it is best to make comparisons between the percentages and the wagering requirements of the sports betting sites that you use online on a regular basis. Research betting sites cashback promotions and the terms and conditions that come with the promotions, if the cashback is real money or in the form of free bets, where the cashback free bets can be played and if there are any time restrictions imposed upon the returned funds.