Bonuses and promotions are designed to increase widespread customer adoption of the brand. The promotion, buy 1 get 1 free, is a standard promotional offer that is widely used in the retail sector to attract new clients and convert them into returning customers.
Sports betting agencies are no different from other commercial and retail brands, expect their target audience is different from a typical online retailer. Therefore, it stands to reason that their bonus and promo offers should be different. Consequently, they make use of the ubiquitous welcome or sign-up bonus to attract new clientele. Again, the premise behind the welcome bonus is to attract and retain new customers to grow the brand; ergo, the more customers, the greater the potential of running a profitable business.
Describing the principles behind a bonus or promotion
It is vital to note that, as with all promotions, there are always terms and conditions attached to the bonus or promotion. And, these conditions determine whether the bonus or free offer is worth accepting.
Here is a typical example of this concept outside the sports betting arena. I registered for and completed an international 5-mile virtual run. One of the rewards for completing the run was a free pair of running socks. My first thought was: “Wow! What a wonderful reward.” However, reality soon set in. I had to pay for the socks to be shipped to me. Therefore, the actual costs are as follows:
The cost of the socks: £12.90
The cost of the shipping: £9.90
Consequently, I am only saving £3.00. This changes the picture. And, by looking at these numbers, it is not worth accepting the free offer.
What you should consider when looking at a welcome bonus
Now that we understand the principle of the primary function of a bonus similar to the Bwin bonus code, let’s consider an example of a sports betting welcome bonus.
You’ve decided you want to sign up with a new sportsbook. You are an experienced gamer and would like to take advantage of arbitrage betting. And, because You’re opening an account with a second, or new, sportsbook, you have to decide whether to accept the welcome bonus or not.
As with our sock example highlighted above, the bonus looks good. It offers new clients a bonus of up to £100 as soon as the initial deposit is made. To be honest, £100 is a lot of money. But it is critical to consider the terms and conditions before making a final decision. Here is a list of the terms and conditions:
- You are awarded a maximum of £100 on your deposit amount.
- The minimum deposit required is £10.
- You cannot withdraw the bonus amount until the conditions have been met.
- You have to wager 3x the total value of the bonus and initial deposit.
- You have 90 days in which to fulfil these conditions. If you do not meet the 90-day requirement, you will lose the bonus and all of its associated winnings.
Finally, let’s look at a calculation of the actual monies you have to wager before you can have unfettered access to the bonus amount.
Let’s assume that your initial deposit is £500. And, the sportsbook has rewarded you with the full £100 bonus amount.
However, you must spend a minimum of 3x (£500 + £100) = £1800 within the 90 days; otherwise, you lose the £100 and any winnings linked to the £100.
The question that you must ask is: Do you have £1800 to lose? If not, it is better not to accept this bonus.