A bonus is defined as a reward for completing a specific action or behaviour. A welcome bonus is usually a financial reward and is offered to clients who sign up with a sports betting agency. Therefore, because the main aim of a welcome bonus is to get people to sign up with the brand, they are usually relatively generous.
Consequently, the question that begs is what value should you place on the welcome bonus in relation to the cost of placing wagers with a sports betting agency?
By way of answering this question, let’s consider the following points:
How valuable is the welcome bonus?
On the surface, a welcome bonus such as the sign-up bonus attached to the Betwinner bonus code, will increase the new sports bettor’s bankroll, even if it is a specific value in free bets.
And, at the outset of this article, it is essential to note that gambling is a high-risk venture and you should not gamble with money you cannot afford to lose, no matter how attractive the bonuses and promotions seem at the time. Secondly, all bonuses and promos have terms and conditions attached. Consequently, it is essential to fulfil these conditions; otherwise, it could cost you a sizeable portion of your bankroll.
Let’s consider a simple welcome bonus scenario:
You have signed up with a sportsbook, completed all the necessary paperwork, funded your bankroll via a wire transfer, and now you are ready to place your first bet.
If you place a bet on any sporting event of at least £10, you qualify for a welcome bonus of £30. Before you rush ahead and accept the offer, let’s look at some of the terms and conditions attached to this bonus:
All deposits made via Bitcoin, PayPal, Skrill, and other such payment mechanisms do not qualify for the bonus. In other words, the sportsbook wants all deposits made using a credit card or wire transfer.
The £30 bonus is available in two £15 free bet vouchers that have to be used within 14 days of placing your first bet.
To qualify for this bonus, you have to place your first bet within 7 days of opening a sports betting account.
The £10 bet has to be placed at the minimum odds of 1.5. And, the 2 x £15 free bets can only be used to place bets at the odds of 1.5 and higher.
Can you fulfil all of these conditions? If so, then it is worth accepting the welcome bonus.
The hidden costs of the welcome bonus
As highlighted above, the welcome bonus’s main aim is to attract new clients. Therefore, it has to look attractive. However, as David Sumpter, a professor of applied mathematics at Uppsala University, Sweden, notes, most people do not look past the welcome bonus. The real element that must be researched is the bookmaker’s margin or overround.
In other words, the sportsbook is in business to make money. A percentage is added on to all the offered betting odds. For example, if a bookmaker adds a 5% overround, it will cost you 5% of all of the money you use to place bets. If you place a £100 bet, £5 is immediately taken by the sportsbook. Therefore, if you don’t win or lose any money, you break even, and you only use the original £100 to place bets with, your £100 will be spent within 20 bets.
Therefore, it makes sense to look past the welcome bonus and look at what the bookmaker’s margin is. You stand to lose far more money paying the bookmaker’s fee on every bet than you will gain with a £30 welcome bonus.