Bad Bonuses Have Unreasonable Wagering Requirements
Before you can find out what makes a wagering requirement unreasonable, you must understand the concept of wagering requirements.
To put it very simply, a wagering requirement is a multiplier value, which indicates the number of times you have to play through your bonus amount or your bonus plus deposit amount before you can cash out your bonus winnings. Wagering requirements are also known as playthrough or rollover requirements.
Here is an example to help you understand this.
Let’s say that an online casino is giving away a bonus of 100% up to $100 on your first deposit amount. You deposit $50 into your account and receive a bonus of $50. This bonus has a wagering requirement of 40x. This means that you have to playthrough your bonus amount of $50 forty times or wager $2000 on the games before you can cash out your winnings.
Before you claim a bonus offer, you must ask yourself whether you can satisfy those wagering requirements. This is important because you cannot take your own sweet time to do it. Online casinos give you deadlines within which you have to either clear your bonus and cash out your winnings or lose whatever is left of your bonus and bonus winnings.
If a bonus has a wagering requirement that is too high, you have to bet more money to clear the bonus and you may find this very difficult to do.
Let us try to understand this with the help of the following two examples:
Example 1: $100 bonus with a 40x playthrough requirement
You have to wager $4000 to clear your bonus. You try to do this by playing a game with a house edge of 4% and suffer a theoretical loss of $160. If you remove this amount from the bonus you received, you would have theoretically lost $60.
Example 2: $100 bonus with a 50x playthrough requirement
You have to wager $5000 to clear your bonus. You try to do this by playing a game with a house edge of 4% and suffer a theoretical loss of $200. If you remove this from your bonus amount, your theoretical loss will be $100.
You lose money in the long run if you claim either of the above mentioned bonuses. But you will lose more if you claim a bonus with a higher wagering requirement.
So avoid bonuses with high wagering requirements.