Online Casino Cashback Bonus Guide
Odds are pretty good that you have seen Cashback offers from online casinos, or maybe you’ve claimed an offer before. Cashback, sometimes referred to as a Loss Back, is a unique type of bonus, and in this guide, you will learn all about Cashback, how it works, promotional terms and conditions, plus more.
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What is a Cashback bonus?
Cashback is a type of promotional bonus offered by online casinos and gambling sites. The purpose of this bonus is to keep you playing for longer because the more you play, the more money the casino can potentially make from you. On the other hand, you might just win by having that extra bankroll from the Cashback.
If you are not familiar with Cashback bonuses, the concept is simple. The casino will give you back a percentage of your losses up to a certain amount. There is always a promo validity period, such as 7 days, and the losses you incur during this period are what the Cashback is calculated on.
There are 2 main types/ways that casinos use to calculate Cashback as follows:
Cashback on Deposit Losses
With this type of offer, the Cashback is calculated based on the deposit amount and is dependent on you losing the full amount deposited. For example, let’s say there is a 10% Cashback up to €100 offer on deposit losses. If you were to deposit €100 and lose all of it, you will then get €10 (€100 X 10%) back.
Cashback on Net Losses
This is the more common type, and the Cashback is calculated based on the deposit amount less any winnings and any other rewards. Let’s look at an example. The offer is 20% Cashback up to €100 offer on net losses. If you deposit €100, let’s say you get an extra €10 from loyalty points. Then you go on to play and win €80 but some days later (within the promo period), you lose all of it. The Cashback will be calculated as follows: €100 – (€80+€10) = €10 net loss and the Cashback will be €10 X 20% = €2.
As you can see from the examples, not all Cashback offers are created equally.
How to Claim a Cashback Bonus?
The exacts steps to claim Cashback may vary from casino to casino, which is why it is so important to look at the promotional terms and conditions before claiming it, so you know what you are getting. However, the general process to claim a Cashback bonus is as follows:
- Visit the cashier to make the mandatory deposit to activate the offer. There will be a minimum amount, such as € Just remember that the more you deposit, the more potential Cashback you will receive. But it won’t make much sense to deposit more than the maximum as you won’t get any extra benefits.
- Before finalizing your deposit, check if there is a promo or bonus code that needs to be entered. You will more than likely find the code on the promo page and in the terms. Make sure to enter the code before depositing or you may not be able to claim it afterwards.
- Play the games you want and hopefully you win and don’t need the Cashback, however, as every gambler knows, sometimes Lady Luck is just not on your side. Something to note is any restrictions on which games qualify for the Cashback.
- Depending on the casino, the Cashback is credited to your casino account anywhere from 1 day to a week. The process is usually automated, and you will probably get an email from the casino to notify you that the money is ready for play.
Do You Get Real Money Back?
This is specific to each casino and even promotion. The most common way that these offers work is that the Cashback is awarded as bonus money. What this means is you cannot withdraw the money and it needs to be used for gameplay and general bonus terms and conditions will apply.
There are, however, sometimes Cashback offers where the money returned goes to your casino’s real money balance and can then be withdrawn like any other funds. These offers may have other criteria you need to meet before being able to withdraw.
What is the Difference Between a Deposit Bonus and a Cashback Bonus?
While both are bonuses and require you to deposit, they work entirely differently.
A deposit bonus is awarded when you make a deposit, and you can then play with the bonus funds immediately, or it might be staggered. A deposit bonus is given irrespective of whether you win or lose.
A Cashback bonus is only activated when you deposit. This means that the bonus has not been awarded because it can only be calculated at the end of the promo period based on your activity. Also, this type of bonus is only awarded to you based on your losses.
What is Ongoing Cashback?
All decent online casinos these days have loyalty and rewards programs. One of the perks that most of these VIP loyalty programs have is Ongoing Cashback, something along the lines of 5% Weekly Cashback. As you climb the ranks of the loyalty program, the percentage will increase.
With this offer, on a weekly basis, the casino will calculate if you had any losses based on their criteria and will credit your casino account accordingly. The amount offered is generally negligible but it’s a nice little gift if you’ve been on a losing streak.
Cashback Terms and Conditions
We all want to get the maximum benefits from the casinos, but as you can expect there are always plenty of terms and conditions. Reading and understanding the terms and conditions is essential or you just might end up disappointed.
Here are a few key terms and conditions you should pay attention to:
Validity Period – As mentioned briefly, there will always be a validity period, and it is your betting activity during this time that the Cashback is based on. If you don’t claim the offer or meet any other criteria during this time, you will more than likely forfeit any benefits.
Game Restrictions – This is another area that generally applies to all types of bonuses including Cashback. This refers to which games will contribute towards the Cashback and which ones won’t. There might also be some games that only contribute a portion. Try to keep this in mind when choosing what games you play while you have an active Cashback offer.
Promo/Bonus Code – These codes need to be entered to activate a specific bonus when depositing. You might receive it in an email or find it on the promo page. Usually, it will also be stated in the T&Cs that you need to deposit with XYZ code. It is important to enter this before finalizing your deposit, or you might not be able to claim it after.
Wagering Requirements – In order to be able to transfer winnings from a bonus to your real money balance, or to withdraw, you will need to wager (place bets) a certain amount. It is usually stated as a multiple, for example, 35X.
The next thing to look at in this regard is what portion of your funds need to be wagered. In most cases it is based on the winnings from the bonus, or the deposit amount and winnings.
Let’s assume you claim a 100% bonus up to €100 and you play and win €90. In order to withdraw your winnings, here is how the wagering requirement is impacted by the 2 different calculations:
- Wagering Requirement of 40X on bonus winnings – €90 X 40 = €3600
- Wagering Requirement of 40X on deposit and bonus winnings – (€100+€90) X 40 = €7600
The reason this is relevant when it comes to Cashback is that it is awarded as a bonus which means you will more than likely need to meet the wagering requirement to cash out.
Summary
Cashback is a type of bonus that gives you back a portion of your losses. This makes a Cashback Bonus somewhat of a double-edged sword as you need to lose first to get something back.
With all online casino bonuses and perks, it is vital to read and understand the terms and conditions. As illustrated with the wagering requirement examples above, a small difference in the calculation can have a dramatic effect.
Depending on the casino and the respective promo terms, you will need to weigh up for yourself whether it is worth claiming Cashback offers and jumping through all the hoops to get some money back, or simply cutting your losses and trying again another day when Lady Luck is on your side.
