Offers for free play have been a staple of bookie marketing for ages. The theory is a straightforward one: provide bettors a taste of the action for free, much like a free drink while gambling, and they’ll return again and again to fill the void. But studies in recent years indicate that while the tactic is still effective, its power is starting to weaken with some groups. Let’s look at how free play operates, and what’s in it for the players as well as the evolving guidelines bookies need to consider.
Ways that bookies use to both gain and keep bettors.
Free play, or gambling money given by the casino or bookie at no charge to the player, has long been used to increase both visitation and play. The main objective is attracting new customers and promoting existing ones to return. Bookies know this and therefore they provide a risk-free chance to win which is an attractive incentive for bettors to bet more.
A study from UNLV finds that the growth of free play has made it a dominant marketing tool in the gaming industry. These rewards are used by casinos to entice customers and bring them back to play, and they spend millions each year to provide this. When gamblers get a taste of hitting it big with “house money,” the thinking goes, they’ll be more likely to spend their own dollars on return trips.
How Free Play Mattered to Us Then
But according to the same UNLV study, led by researcher Anthony Lucas, the effectiveness of free play may be waning for certain player cohorts. Lucas discovered that limiting the number of free play opportunities resulted in little to no change in visitation or spending among these demographics. It indicates that though a free play can still lure customers, it may lack the potency of increasing spending and brand loyalty as before.
“Free play isn’t a bad thing per se,” Lucas said. “Simply, its efficacy has matured. Casinos must ask themselves, ‘How can we do it differently? How can we do it better?’ ”
Cost vs Benefit Bookie Strategies
A major downside of free play is its expense. As casinos jockey for a finite group of patrons, the costs of free-play initiatives can spiral. Lucas estimates that a typical casino could spend tens of millions of dollars a year on these incentives. And that begs the big question: can’t these funds be put to better use?
The analysis found that 0% of the group whose benefits were cut completely eliminated free play, and that there was a 20% drop in visitation of people in this group. But smaller cuts to free play, such as $5, $10, or $15 allotments had no additive effects on frequency of visitation. This suggests that a greater amount of free play is required in order to keep customers engaged, and casinos may not need to provide as much free play as they do now.
Looking for Other Sources of Motivation
With such high costs and average effectiveness of free play, it makes sense for casinos and bookies to find other ways to attract and retain customers. Lucas proposes reallocating a portion of the money spent on free play to other areas, like beefing up customer service and making the casino’s physical footprint more inviting.
Focusing on these can create a huge difference in customer satisfaction and loyalty. For example, an inviting casino atmosphere, well-trained staff and amenities can improve the gaming experience and bring people back even in the absence of heavy free play offers.
A Call for Innovation
Bookmakers, casinos must constantly analyze how effective marketing efforts like free play are. By keeping their finger on the pulse of customer desire and industry patterns, they are able to adjust their methods to deliver the most attractive and economical enticements.
Free play is still an important weapon in the toolkit of bookies and casinos; however, the effectiveness is not the same across the whole customer demographic. With the growing industry and stiffening competition, operators must identify new ways to attract their audience.
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