The UK online casino market is fiercely competitive, and no-deposit offers are one key way to attract British players. Navigating this landscape requires a deep understanding of the opportunities and challenges involved.
In this interview, we sit down with Christoffer Ødegården, Head of Marketing at the popular UK affiliate Bojoko.com, to delve into their insights from promoting no-deposit bonus offers in the UK market. The conversation covers the risks and rewards associated with no-deposit offers, the importance of transparency and unambiguous terms, and data-driven strategies for maximising the effectiveness of these promotions.
Online casinos must be strategic with their promotional offers
We start by asking Ødegården to set the scene for the advertisement of no-deposit bonuses in the UK market, to which he replied, “Online casinos must be strategic with their promotional offers. No-deposit bonuses are efficient because they attract new players and encourage them to try different games. However, there are inherent risks. One of the biggest challenges is the financial risk associated with no-deposit offers“.
Ødegården continues. “Only a few UK casinos are willing to offer no-deposit bonuses because a significant portion of the players who claim these offers are unlikely to make a deposit. They often just take the bonus, enjoy the free play, and then move on without intending to deposit real money.”
He also highlights a key regulatory concern for operators unfamiliar with the UK: “A critical regulatory requirement in the UK is that when you promote a bonus as free, including free spins, they must be completely free, without any deposit required. This has been the case for about a decade now, but operators used to working outside the UK might be surprised by this regulation,” Ødegården explains. “Failing to comply with this requirement can result in significant fines and regulatory action. Operators need to understand and adhere to this rule to avoid penalties.”
Retention Strategies
Ødegården points out that less than 10% of UK casinos reviewed by Bojoko have no-deposit offers. They display all these offers in their overview of no-deposit bonuses and actively track their success.
“These offers can attract a lot of bonus hunters, who grab the offer and run. Even those who deposit often make a small one to verify their payment method and account and then withdraw their funds as soon as possible. This creates a high financial risk for the operators without guaranteeing a return on their investment.”
Retention strategies are key to mitigate these risks. Ødegården emphasises, “The initial no-deposit offer needs to be part of a broader, well-thought-out retention strategy. Operators must find ways to keep players engaged and returning after the initial offer. This should involve offering additional bonuses, loyalty programs, or other incentives encouraging players to continue playing and depositing.”
Ødegården further states that transparency and straightforward terms are also crucial. “Players appreciate offers that are straightforward and without surprising conditions. If the terms and conditions are too restrictive, it can lead to player dissatisfaction and harm the casino’s reputation,” says Ødegården. “At Bojoko, we advise operators to be as transparent as possible with their offers. Clear communication builds trust and leads to better player retention.”
Bojoko leverages extensive data to provide insights into what works best in the UK market. “Our platform collects and analyses data on player preferences and offers performance. We know that adding a small no-deposit bonus will bring a casino about 5-15 additional FTDs per month just from our platform, but how valuable these FTDs are depends on a casino’s retention strategy. This is really what it comes down to. Can your casino maintain the interest of the players you bring in with these offers? If not, it might be best to avoid offering them.”
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