The Psychology of Bonus Fatigue: Are Too Many Casino Promotions Hurting Retention?

What is Bonus Fatigue?

Bonus fatigue refers to the phenomenon where casinos offer bonuses in a somewhat aggressive manner, which runs the risk of potentially backfiring and instead making players less inclined to play at the casino. With most casinos now offering various bonuses to each customer, the sheer number of options can become overwhelming for players. Alongside ‘bonus fatigue’ other effects that such a ploy can have include::

• Decision fatigue: This refers to the tiring decision-making that casino players experience due to the numerous bonuses offered at online casinos.
• Reward devaluation: Due to the number of bonuses offered by casino operators, players have started to feel that they aren’t worth as much as they have been in the past.
• Paradox of choice: Since most online casinos offer bonuses, many players believe there are too many choices, making it harder to decide and potentially souring their casino experience.

The Psychology of Promotional Overwhelm

The brain is a very powerful thing and casino operators are aware of the psychology that will inform players’ decisions when playing at a given site. “Operant conditioning” is a psychological term related to how the mind changes due to learning from decisions with inevitable consequences.

For example, if a dog gets a treat every time its owner says “sit”, they will relate that word with a positive consequence, and it will shape their future decisions. When talking specifically about online casinos, operators know that specific bonuses will encourage players to continue to gamble on their sites.

Players’ brains work in different ways, and some will have a negative experience when gambling at an online casino and never return. In contrast, others will return to a state of stable mind after experiencing something similar and return to the casino despite losing. This is what experts call “Hedonic adaptation”, where the state of our emotions quickly resets after a significant positive or negative event.

Søren Harnow Klausen, an expert in the field, states: “Adaptation can work both for good and for bad, depending on the psychological and contextual details.” This can relate directly to the decisions that casino players make at sites. For instance, if a casino player loses £2,000 in a blackjack game, which can harm their well-being, they may essentially forget this negative experience and return to the site to spend more money in the future, despite suffering a monumental loss on that occasion.

For some, visiting a casino for the first time can be a novel experience, prompting them to pursue promotions and explore the site. This is referred to as “Novelty seeking”, a personality trait relating to the release of dopamine and adrenaline that is directly linked to the making of impulsive decisions, exploratory behaviour, and the brain responding to novelty stimuli. When talking about players at online casinos, bonuses may engage a player’s brain in a certain way, which will then cause certain chemicals to be released into their bodies, which will then affect their future decision-making.

The words “brain dead” are sometimes used to describe gamblers, but this is far from the truth. Despite online casinos’ promotional efforts to encourage players to buy into the product they are offering, research from Optimove shows that 86% of them unsubscribe from sites due to excessive and irrelevant messages relating to bonuses. Further research suggests that 30% of casino players feel overwhelmed by the volume and frequency of promotional offers, which are sent through various methods, including emails, messages, and promotional graphics on site.

This all comes back to the idea of bonus fatigue. Ultimately, this can have adverse effects on players and have the opposite effect. Promotions that are poorly timed or irrelevant to players can lead to decreased loyalty, disengagement, and a waste of a casino’s marketing budget.

The Over-Promotion Trap: The Impact on Revenue and Retention

Although many casinos rely on promotions to market themselves to players and differentiate themselves from the competition, these efforts often trap them and drive players away.

Many players are ignoring bonuses, unsubscribing from marketing emails, and disregarding bonus terms and conditions. This suggests that these bonuses may not be as effective as they are perceived to be, leading to lower site visits and fewer conversions.

Examples of repetitive bonuses include receiving a certain number of free spins on a specific day of the week or a weekly reload, allowing players to claim back some of their losses. Although the casino intends to reward the player (or so they believe), repeated exposure to these promotions can lead to the novelty wearing off, causing players to avoid them entirely.

Even though the casino may be offering lucrative or large bonuses, an increasing number of players are leaving or choosing not to take them. It suggests that promotions are not enough to keep players sticking around, and that other factors have an effect on their overall experience, such as poor selection of games, invaluable support, or a shallow loyalty program..

Smarter Promotions

Casinos should be trying to offer promotions that make them stand out from the crowd rather than blend in, which is becoming less and less prevalent. If casinos offer better bonuses instead of constant minor promotions, this may improve player retention and overall annoyance.

Studies show that 56% of players find relevant and personalised marketing strategies are more effective for casino players signing up or opting in to specific promotions. If a player feels that the casino is directly targeting them with tailored marketing, they will be more inclined to accept it.

Personalised marketing can be challenging, especially for sites with a high volume of players, as it’s difficult to send specific promotions to each player. However, with the improvements and implementation of AI technology, this could change.

Other ways to improve player retention while still offering bonuses may be to change what is being offered. If a casino offered rewards unrelated to monetary value, such as new and exclusive games for players to try, this could potentially improve retention rates. For example, if 99 casinos are offering 20 free spins on a Wednesday night, and one casino is offering access to a new and exclusive game. In that case, the latter will stand out from the crowd.

Another way to improve retention is to offer promotions only at specific times of the year, such as holidays or major sporting events like the FIFA World Cup. This approach ensures players don’t feel overwhelmed by the number of promotions they see.