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Are Welcome Bonuses Still Effective in 2025?

Elegant woman lounging on a sofa with her tablet with digital bits in the background - Generated with AI
Welcome bonuses are still a big deal.

Are Welcome Bonuses Still Effective in 2025?

September 4, 2025 Posted by A.K. Patel Editorial No Comments

Welcome bonuses have been the crown jewel of online casinos’ marketing arsenals for years. Aimed at attracting new players, these bonuses have offered extensive benefits that far outweigh the rewards offered to existing gamblers.

Over the years, operators have built a track record showing the effectiveness of these bonuses. This has given operators, players, and the industry at large the ability to look back and see which welcome bonuses are most worthwhile.

With new methods to measure metrics and their attractiveness to new players, many casinos are beginning to ask if these bonuses are still effective in today’s gambling environment. To determine the answer to this question, we have analyzed why they may, or may not, still have a place in iGaming today.

The Challenges

The viability of welcome bonuses in today’s online gambling market is under threat due to two distinct reasons: the development of niche bonuses and the calculation of customer acquisition costs.

Niche Bonus Market

Welcome bonuses have, since inception, looked to break the proverbial ice between operators and players, making new registrants feel rewarded for playing. As such, they offered unique deposit match rewards alongside free spins.

Since their introduction to online gambling platforms, new types of rewards have entered the market. These, such as the no-deposit bonus, have captured the attention of players far more than traditional welcome bonuses.

No-wager bonuses, which are no-deposit bonuses that have zero wagering requirements, have also become exponentially popular. These, which were only offered by 12% of online casinos in 2025, have encouraged players to accept welcome bonuses and have led many to think they are still viable as a marketing method in today’s landscape.

Customer Acquisition Costs (CAC)

While the increased adoption of welcome bonuses due to no-deposit and no-wager bonuses supports their continued use, the calculation of customer acquisition costs (CAC) in response to these bonuses tells a different story.

A 2024 study by Invesp revealed that acquiring a new customer costs, on average, five times more than retaining an existing one. This can increase to almost 25 times more in extreme cases.

With casinos needing to increasingly offer better and more risk-free rewards to attract new players, the CAC can range from $200 to $500 per player. Compounded against the number of players casinos hope to attract, this CAC can swallow between 20-30% of the casinos’ marketing budget.

Despite these extensive investments in new players, it is estimated that up to 60% of players who register with an online casino will not return after the first 24 hours. This statistic shows that this marketing spend can result in a retention rate of just 40%.

Because of this churn of players, online casinos have begun looking at new ways to calculate the viability of welcome bonuses.

Player Lifetime Value

Player lifetime value (LTV) is being calculated to represent the net profit that a casino can generate from a player over their entire relationship with the casino. When compared to the CAC per player, the LTV highlights where marketing and acquisition costs incurred by operators are outstripping their return on investment (ROI) per player.

Generated using metrics like Average Revenue Per User (ARPU), these calculations have revealed that operators should shift focus from acquisition to retention; a 5% increase in player retention has been proven to increase the profitability of a casino by more than 25%.

This realization is increasingly causing operators to reevaluate expenditure on player acquisition and turn more toward retention benefits and rewards, seeking to keep existing players coming back for more rather than attracting new players.

Retention Techniques

While various retention techniques have been employed by casinos for decades, these are receiving renewed focus and greater funding as the shift from acquisition to retention spreads. Some new techniques have also appeared that are proving more successful at keeping player engagement and interest.

Loyalty Benefits and Programs

Among the most widely used retention techniques is loyalty or VIP programs. These reward players for continuous gameplay or offer unique discounts or benefits for hitting specific spend targets. Essentially, the more you play, the greater your rewards, as these programs tend to operate on a tiered structure.

Aside from providing exclusive rewards to players, VIP programs also boost retention based on the exclusivity they offer. With certain rewards tied to specific tiers, these systems encourage players to reach higher tiers, thereby increasing their gameplay.

elegant woman standing and playing on her tablet with a black background - Generated with AI
Loyalty is important.

Gamification

Gamification has also become a significant strategy in boosting player retention. Through the introduction of elements like leaderboards, tournaments, progression levels, missions, daily challenges, and badges, operators make online gambling more interactive and enjoyable.

These features give players a sense of progression when playing their favorite games, which encourages them to return.

Ongoing Promotions

Another tactic gaining popularity among online casinos is to offer more regular, ongoing promotions and rewards to existing players rather than providing them only for new registrants. These, which have a greater ROI and lower cost than new acquisitions, make existing players feel valued and encourage continued gameplay.

Beyond aiding in player retention, ongoing promotions, particularly if marketed openly, can serve as an incentive for new players. This is because they can glimpse the continuous rewards on offer from an operator that may be alluring, even when there is a lack of a welcome bonus. These can also keep players more loyal to an operator rather than shopping around for the best welcome bonuses offered by competitors.

Conclusion

Sustainable value has been measured against initial promotional offers across many industries, from mobile gaming to streaming services that operate on a subscription basis. With the high cost of player acquisition in the iGaming industry, operators are shifting their focus toward retention over acquisition.

As such, while Canadian casino bonus offers still comprise welcome bonuses that make registering with an online casino worthwhile, the effectiveness of and need for welcome bonuses is beginning to diminish.

While it is unlikely that these bonuses will be eliminated entirely, these offers will likely offer less value as the industry begins to shift toward a focus on retention, become scarcer among operators, and be less of a deciding factor for players.

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About A.K. Patel

Correspondent for Armchair Arcade.

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