No-deposit bonuses are often seen as a risky promotional strategy for online casinos. While they remain popular among players for providing a no-risk way to try a site, most operators in the UK steer clear of them.
The primary concern? They offer players a chance to win real money without guaranteeing long-term loyalty or engagement.
To understand why no-deposit bonuses can still hold value and how they must be carefully executed to succeed, we spoke with Christoffer Ødegården, Head of Marketing at Bojoko.com. They are one of the biggest iGaming affiliates in the UK, promote casinos that offer no-deposit bonuses, and actively monitor their performance.
In this interview, Ødegården discusses why no-deposit bonuses remain a double-edged sword and how operators can make them work in the highly competitive UK market.
Why do so few UK operators offer no deposit bonuses?
It’s simple: no deposit bonuses are high-risk and don’t always provide a clear return on investment. You’re essentially giving players a chance to win without requiring any upfront commitment. Naturally, this attracts a lot of casual players or “bonus hunters” who have no intention of sticking around after they’ve used the offer.
For operators, this lack of retention is the core problem. Acquiring new players is expensive enough without the added challenge of retaining players who come mainly for a freebie. If the large majority of players who claim a no-deposit bonus don’t convert into loyal members, the costs likely outweigh the benefits.
So why do some operators still offer no deposit bonuses?
Despite the risks, no deposit bonuses can be valuable when used strategically. There are few better ways to cut through the noise and get all eyes on you. The key is to treat them not as standalone offers but as part of a larger acquisition and retention strategy.
For example, they can be a fantastic way to showcase your casino’s best features. A strong game library, smooth user experience, and excellent customer support can all help turn a no-deposit player into a depositing one. This is not unique to casino operators; it is the same for sportsbooks, and we saw the same thing when we opened our bingo vertical.
The main issue here is that operators need to have a plan for what comes next—whether that’s a competitive welcome bonus, a compelling loyalty programme, or other incentives to keep players engaged, such as tournaments, frequent bonuses, and gamification.
How can operators make no-deposit bonuses work for them?
Retention is the name of the game. To make no-deposit bonuses worthwhile, operators need to focus on converting claimants into long-term members. This requires a few key strategies.
First, ensure that players have good reasons to stick around after they have signed up and claimed the no-deposit bonus. If you consider these offers to be the main attraction rather than an introduction to your amazing product, you will already be lost. Follow them up with competitive deposit bonuses, loyalty rewards, or exclusive promotions to encourage continued engagement.
Second, the performance and retention of the players who sign up should be monitored. How much does the promotion cost you? How much are you gaining? Make sure that the math makes sense, and if you see that it does not, end or change the offer.
Lastly, you may want to avoid casting a net that is too wide. Instead, focus on attracting players who are genuinely interested in your casino’s offerings. You can, for instance, measure the value of traffic from a few top affiliates, such as Bojoko, and make determinations as to which sends the best value. You will likely find that the value of the traffic varies drastically, and you can then run it as an exclusive promotion with those affiliates that make you the most money.
Are there ways to minimise the costs of offering a no-deposit bonus?
Absolutely. One effective strategy is to cap the bonus value or winnings that can be withdrawn from a no-deposit offer. For instance, a £50 no-deposit bonus might come with a maximum cashout of £10 or less. This ensures that the bonus doesn’t result in significant losses while still giving players enough incentive to try your site.
Another approach is to focus on non-cash bonuses, like free spins. These often have a lower perceived cost for the operator while still offering players an engaging experience. Additionally, robust verification processes can help prevent abuse and ensure that bonuses are going to legitimate players.
Given the challenges, do you still see a place for no-deposit bonuses in the UK market?
Yes, but only when used strategically. No-deposit bonuses aren’t a silver bullet—they won’t work for every operator or every situation. However, when integrated into a broader marketing and retention strategy, they can still be an effective tool for attracting and converting new players.
The key is to manage expectations and ensure that the bonus aligns with your long-term goals. Operators need to look beyond the initial acquisition numbers and focus on building lasting relationships with their players.
Read more:
Christoffer Ødegården: Why No-Deposit Offers Demand a Clear Retention Strategy to Deliver Value
