iGaming Bonus Hunters or Poor Bonus Policies?

iGaming Bonus Hunters or Poor Bonus Policies?

Bonuses in the iGaming industry are not acts of charity, but strategic tools designed to boost profits. The principle is simple: offer a bonus now, and the player will return tomorrow to deposit more money.

The Impact of Bonus Hunters

Players approach bonuses differently. Some avoid them entirely, some use them moderately, while others exploit them to the fullest. The latter category, known as bonus hunters, seeks to maximise advantages by finding loopholes in terms and conditions and identifying the best games to fulfil wagering requirements.

These players are typically identified by a high deposit count paired with a high bonus rate - the ratio of bonuses received to deposited sums. Initially, this behaviour was disregarded as part of typical player engagement. However, a deeper analysis revealed an underlying issue in bonus allocation.

Internal Policy Flaws

Upon examining a surge in bonus distribution over a particular month, it was initially attributed to new promotional activities. However, the true cause was an uptick in players identified as bonus hunters, defined as those with over ten deposits and a bonus rate exceeding 50%.

Investigations showed that poor bonus policy allowed players to join multiple bonus campaigns simultaneously, receive regular bonuses, and participate in other bonus-based gamifications. From a player's perspective, refusing free benefits is illogical, so they capitalise on the opportunity, reducing their out-of-pocket spending.

Business Consequences

This scenario demonstrates a poor synchronization between various departments within the same project, leading to a single player receiving offers from multiple teams. This bonus-chaos results in decreased player deposits, as bonuses replace players' own funds. Consequently, Gross Gaming Revenue (GGR) does not originate from deposits but from operator-funded bonuses, which still incur commissions.

Conclusion

To prevent similar issues, bonus policies must be regulated and well-coordinated. Launching new campaigns requires an understanding of existing player bonuses to avoid overwhelming them with excessive bonuses. Rectifying bonus chaos is simpler in the early stages of a project. If not addressed, resolving issues later is challenging, with a risk of losing players accustomed to higher bonus offerings.

Source: igamingceo Telegram