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More and more sweepstakes casinos are rolling out cashback-style rewards. Indeed, bonuses and promotions are a big aspect of how sweeps casinos operate.
One can’t help but wonder, though, what has triggered the sudden adoption of this particular reward.
Interestingly, one relatively new social casino, CoinsBack Casino, is making cashback rewards the cornerstone of its promotions; it’s even in the name.
Is cashback rewards just about enticing and rewarding players, or is there something more at play here?
What are cashback rewards?
Cashback rewards are essentially a refund of your net losses. Of course, you don’t get a full refund but rather a percentage of the amount you lose. Rates typically range from 5% to 10% but can go up to 20% or higher for VIP players.
For example, if you play with 300 Sweeps Coins (SC) and win 100 SC, your net loss is 200 SC. With a 10% cashback offer, you would get 20 SC back.
Cashback rewards are based on varying periods, including daily, weekly, and monthly, but mostly weekly. Notably, they come with certain restrictions and requirements, which may vary between different platforms.
The most common requirement is playthrough, which is usually set at 1X. Restrictions mostly involve how much you can claim in cashback, as many casinos have strict caps, as well as the games you can play using the bonus coins.
CoinsBack’s unique cashback rewards
CoinsBack Casino is an excellent example of social/sweepstakes casinos offering cashback rewards. It is certainly not the only one, and there are many older casinos that already offer the rewards, but it stands out for having perhaps the most elaborate system.
Players get 50% SC back on every spin, based on the particular game’s RTP and the house edge. For example, a game with a 96% RTP rate gives the house an edge of 4%. So, supposing you played with 10 SC, the 50% back would actually be 2% (50% of the 4% house edge), and you’d get back 0.2 SC.
Notably, this reward applies to all SC spins, regardless of whether the player wins, loses, or breaks even. In contrast, most cashback rewards are based on losses.
Why the sudden adoption?
Indeed, many sweepstakes casinos have launched cashback rewards relatively recently, and many have plans to do the same soon. Some of the reasons behind the sudden rise of cashback rewards are obvious, while others are strategic.
The Obvious
Player engagement is the most obvious reason behind the sudden rise of cashback offers. Many players appreciate any promotion they can get, as it helps them extend their playtime without necessarily spending more.
Notably, cashback offers feel like consolation for unlucky players, which makes them even more appreciated. Interestingly, many sweeps casinos tie cashback rewards to VIP programs, with rates increasing as players level up. As such, the reward can also help boost loyalty.
Interestingly, in the case of CoinsBack Casino, the cashback rewards aren’t based on losses or tied to a loyalty program; every player and every SC spin qualifies.
Cashback rewards also help casinos add to their roster of bonuses, giving them an edge over the competition. To this end, a player would be more likely to pick a sweepstakes casino with a cashback reward over one without.
The strategic
Most sweepstakes casinos operate outside gambling laws and regulations by adopting a promotional model. Technically, players don’t need to spend money to play, as they can get Gold Coins for free via bonuses and promotions. However, they have the option of buying more coins if they run out of the free ones and are usually awarded with SC.
The catch is that players cannot buy Sweeps Coins, which are redeemable for real prizes. Those come as bonuses. As such, by returning lost SC as a bonus, it further reinforces the idea that this redeemable token is a promotional tool rather than a digital currency.
