Welcome bonuses or new customer offers are used primarily to attract new clients. Therefore, the attached terms and conditions tend to be very generous. However, at this juncture, it is essential to note that it is essential to study the offer’s terms and conditions before you accept the bonus. Otherwise, it could end up costing you a substantial amount of your bankroll.
The global population is slowly emerging from an environment where over 50% of the world’s citizens were facing a form of lockdown or stay-at-home order. While the reasons for this lockdown are not relevant to this discussion, it is important to note that the widespread adoption of the use of smartphones and tablets as a primary driver for online activities has been enhanced by this lockdown order.
It makes sense that sportsbooks prioritise the acceptance of their mobile apps such as the Ladbrokes mobile app, by clients both new and existing, to drive business growth and development. A sportsbook is a for-profit business and relies on the placement of bets.
The new customer offer or welcome bonus: A case study
Therefore, to describe how a welcome bonus attracts new customers, let’s consider the following scenario:
Let’s assume that you wish to sign up with a new sportsbook. While it is essential to look at the betting odds and different betting options like accumulator bets, in-play bets, and single bets on offer, it’s a good idea to look at how keen the sportsbook is to sign up new clients. And, this fact is visible by looking at a sportsbook’s welcome bonus.
By way of expanding on this statement, let’s consider a sample welcome bonus from a sportsbook that we’ll call Sportsbook 1.
Sportsbook 1 has just released a new welcome bonus. The terms and conditions are as follows:
- Place a bet of at least £5 on a football match and get £20 in free bets.
- However, if you fund your bankroll using PayPal or other similar deposit types, you are not eligible to take up this offer.
- You have to place the £5 be within 14 days of opening your account.
- The minimum odds for the £5 bet have to be 1:1 or 1/2 (decimal odds versus fractional odds).
- The free bets are only available for 7 days after being awarded.
- If your free bets are winning bets, the stake is not returned. You only receive the winnings.
Therefore, the question that begs is whether it is a good idea to accept this bonus or not.
Let’s consider the following arguments to answer this question.
It is important to calculate the winnings on the betting odds of 1/2. The formula to make this calculation is as follows:
The total payout on £5 at 1/2 odds = stake x (numerator/denominator) + stake = £5 x 1/2 + £5 = £2.50 + £5 = £7.50.
Therefore, if you win, you get £7.50 back and if you lose, you lose £5.
If you accept the £20 free bets and you bet on a sports match using the same odds, the payout calculation is as follows:
Winnings = £20 x 1/2 = £10. If you place a winning bet using these free bets, you don’t get the stake back. The £20 was free so you can’t claim it as part of your winnings. Therefore, £10 back on zero investment is a viable offer. And, if you lose this bet, you don’t gain or lose anything because the £20 stake is free.
Therefore, according to these calculations, it is worth taking the sportsbook up on this offer.