Free play allows customers to play casino games without making a deposit. Often used as incentives to attract new customers and increase profits, studies suggest they may not have the impact desired.
It is now estimated that there are 4,627 online gambling and casino businesses across the globe. Competitive is an understatement, and free play options are now an extremely popular method used to attract new customers. Imagine being offered the chance to win at table games and slots, without having to stake any money. Many customers like yourself have jumped at the chance, yet they may not be providing the return on investment that casino operators expect. So how will they adapt in a world that expects free play options?
The Excitement of Free Play Casino Gaming
You may have encountered these extremely prevalent offers in the slot genre. With a global value of $11.42 billion and 73% of casino users stating slots are their favourite gaming option, it is a crowded field. There are also huge amounts of these now online for you to try, with differing themes, bonuses and mechanics. Providing free slot games is a way for companies not only to entice players away from competitors, but it also helps grow the player base of the sector.
One of the main advantages of free play options for customers is that they can learn games without financial risk. You can use them to get to grips with blackjack strategies or test out new slot games with exciting mechanics. Exploring the variety of games on offer is another plus. It lets you see which element of online casino gaming you enjoy the most, without having to lose a lot. This could be table games, slots, or crash gaming titles.
Despite this, there have been big questions over the value of free play options. From the perspective of casinos, it is assumed that they attract customers, foster loyalty and increase the time spent on platforms. On the other hand, regulators worry that they encourage problem gambling and risky behavior patterns. However, there are questions over the legitimacy of both concepts.
The Caveat of Wagering Requirements
The problem with free-to-play options is that they often come with terms and conditions attached. Generally, you can’t win money by playing them, and if you can, it is often subject to the dreaded wagering requirement, as are most modern casino bonuses or anything that claims to be free. You may finally bag that huge win, only to find you can’t deposit the riches into your account.
A wagering requirement is given as a multiplier, for example, x 20. To claim any winnings from a free-to-play mode, or from free spins bonuses and matched deposits, you must wager the amount of the multiplier. So if you won $100 and the wagering requirement was x20, you would have to stake $2000 before you could withdraw your winnings.
Wagering requirements are a legitimate way for casinos to protect themselves from large losses. Those who are savvy will try to find casinos with the least restrictive wagering requirements, or free play modes that don’t require any lengthy terms and conditions.
Studies have shown that around seven in ten people can’t work out how much they would need to wager to withdraw their money. This study, conducted by Behavioural Insights, also found that three in five people did not realize wagering requirements applied to an offer at the point of choice. That makes it vital that when you are playing slots for real money, you use a third-party review site that clearly labels any terms and conditions from the recommended operators.
The World of Free to Play Gaming
There are other methods of managing free-to-play games that exist outside the realm of online casinos. Generally, these are built around free-to-play app models. They make money in a range of different ways, including in-app advertisements or microtransactions. You may have seen these types of games on social platforms like Facebook or in the app store. Poker games of this nature are particularly popular. Around 48% of gamers state that they are interested in free-to-play games.
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Straddling the space between both of these are online sweepstakes or social casinos. They have risen to popularity, particularly in the United States, where only seven states allow the legal use of real cash online casinos. These operators work using in-game currencies, with no cash exchanging hands. Currency can be gained from daily log-ins, giveaways and the purchase of coins. While they provide casino entertainment, they do so under sweepstakes laws and are not beholden to gambling legislation.
When it comes to sweepstakes casinos, an estimated $8.5 billion was spent on them in 2024 alone, though only 12% of users actually convert to a paying customer. These figures have been enough to spook the industry. Washington, Michigan, Montana, California, Connecticut, Nevada and New Jersey have placed outright bans on sweepstakes casinos, believing that, despite being free to play, they are actually still gambling.
How Do Free Play Models Impact Gambling Behaviour?
A 2023 study published in the International Journal of Contemporary Hospitality Management analyzed player data from four different casinos over a period of 365 days. The aim was to see if casino revenue increased, which was categorized as player losses, and if the time spent went up when free play was offered. Disappointingly, the study found neither was impacted, with additional evidence to support the fact that it did not encourage risk-seeking behaviour.
This is important for casinos, as free play models can be costly. Essentially, people are not wagering and playing games without cost, which takes money away from their profits. With such a big risk, a bigger return would be expected, which was not evident in this survey.
The views on free-to-play gaming in the casino sector are mixed. Trafficology asked three experts in the field about their views on the role of free-to-play models in the casino industry and how useful they are, with wildly varied opinions.
One of the key takeaways was that it is a chance to make new customers from those who would generally be apathetic to that type of gambling. This was highlighted by Owain Flanders, who used an example of a friend who has no interest in football, placing a weekly bonus prediction bet. He then discussed how one casino used a daily prize machine, which enticed him to use it and win a few free spins or credits, which he would play despite having no real interest in playing slots.
Another strong point was made by another commentator on the article, Iqbal Johal. He discussed the concept from a marketing perspective, stating that the time and effort to set up these campaigns made against the returns was not good enough. His experience, which echoed the findings of the International Journal of Contemporary Hospitality Management study, was that they have minimal impact. In fact, he expressed concern that offers with slim chances of winning could actually frustrate players.
The Possible Impact of Free to Play On Online Casinos
Finland is one country changing its methodology when it comes to bonuses and free-to-play games. While the country’s only gambling outlet is state-run, many offshore operators cater to the market. Where huge wagering requirements often hid free-to-play models and bonuses, it is no longer the case. Instead, Finland has begun to adopt a real, no-strings-attached wager-free bonus.
The wager-free bonus means you don’t have to play through bonuses to withdraw any winnings. They are, in fact, exactly what they say. No wager free spins are attempts on slot machines that you can take with no wagering requirements attached. Named “Kierrätysvapaat Kasinot,” these wager-free sections in casinos are gaining huge popularity.
Crucially, some of the casinos that use wager-free cashback offers have reported more loyalty from their customers. This is used to pay back some losses on money spent gaming. It is a huge risk for casinos, essentially giving profit back to players. Yet in a crowded marketplace, this method of retaining loyalty could prove even more effective than the endless bonuses on offer, which can often look exactly the same as those provided by the next casino.
All this evidence suggests that a shift towards free play is not necessarily bad for online casinos. There is a risk when it comes to the money lost on the promotions and the return on investment once marketing is considered. However, it also suggests that it is not good for online casinos either, providing little in the way of returns, either through increased customer spending or retention.
