What is Wagering and How does it Work?
Wagering is another term for betting. The person who does it is known as the bettor. In gambling, wagering refers to putting in a certain amount of money or an item of value with the intent of winning. The outcome is unknown and involves uncertainty.
Three vital elements define wagering: the amount of money or item staked (consideration), risk (chance) and of course, reward, which may be monetary or material. The outcomes are almost always immediate (think roll of dice, spinning of the Roulette wheel, or spinning of slot reels). However, longer time frames aren’t uncommon as well (think tournaments and events that are seasonal or time bound).
In online gambling, wagering always involves real money and is either against the house or against the player or both. If the bettor wins, the wagered amount is returned to him along with the winning stakes. The amount a player wants to wager can be anything. But, most games and casino operators would cap it for every spin or turn.
VIDEO TUTORIAL: WAGERING REQUIREMENT
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Understanding Odds in Wagering
The amount of money returned to a player post wagering depends on the odds of the game. Odds are numerical expressions, usually a ratio, which reflects the likelihood of the outcome of an event. They are presented as ‘X to Y,’ where X and Y are numerical values that represent the amount staked by the house to the player’s wager.
Odds can be ‘against’ when the probability of an outcome happening is lesser than it not happening. Odds can also be ‘on’ when it’s the opposite. Odds are even when the probabilities are same, leading to a 50-50 chance (akin to tossing a coin).
For instance, when you roll a dice and bet on one of the six sides, the probability is 1/6. In this case, the house stakes 6x the amount staked by the player. The odds here are 5 to 1. When the player wins, he receives 5x his wager. Now, if he wagers 6 times and wins once, he gets 5x his wager while also losing 5x.
Here’s a simple calculation considering a fair bet with true odds:
|5:1 Odds | Wager Amount: ₹1 | Wager 6 times|
|Win||₹1 X 0 = ₹0||₹1 X 1 X 5 = ₹5||₹1 X 2 X 5 = ₹10||₹1 X 3 X 5 = ₹15||₹1 X 4 X 5 = ₹20||₹1 X 5 X 5 = ₹25||₹1 X 6 X 5 = ₹30|
|Lose||₹1 X 6 = ₹6||₹1 X 5 = ₹5||₹1 X 4 = ₹4||₹1 X 3 = ₹3||₹1 X 2 = ₹2||₹1 X 1 = ₹1||₹1 X 0 = ₹0|
However, this is only in theory. In online casinos, the odds might vary significantly due to ‘house edge’ and something called ‘Wagering Requirement’ (explained next in this article). This is why it is important for players to thoroughly analyze betting systems and follow wagering strategies that have been worked out using solid mathematical calculations.
Wagering Requirement: Why do Online Casinos Place it on Bonuses?
Also known as ‘Spinthrough Requirements,’ ‘Playthrough Requirements’ or ‘Rollover Requirements,’ WR signifies the number of times or the certain amount you need to bet before you can cash out bonus money or any winnings that come from it. You can imagine this as a hurdle race where you need to jump over multiple obstacles to reach your goal. It’s never straightforward sprinting.
Despite the not-so-appealing motive, why casinos place WR on bonuses is the question!
Now, online casinos offer myriads of bonuses to attract players. This could be a welcome bonus when a new player registers or makes a deposit for the first time. It could also be a bonus rewarded to a loyal player later for frequenting the casino often.
There are two very popular casino bonuses we’d like to discuss. The first one is a No Deposit Bonus where the casino offers free cash to play when you sign up. The second one is a Match Bonus, which is rewarded as ‘X%’ of the deposit you make. If it’s a 100% Match Bonus, you receive an amount equal to your deposit (₹100 when you deposit ₹100).
Because this is a tempting financial offer, it is most prone to what is known as ‘bonus abuse.’ Players could cash out the bonus money without playing further. And then, they could also operate multiple accounts to receive the same bonus more than once. This would result in the casino incurring massive losses and not being able to entertain genuine players the way they deserve.
To minimize this risk and make gambling worthwhile, online casinos place the rule of meeting Wagering Requirements (WR).’ It is because of this criterion that casinos are able to maintain stable finances and hand out so many incredible bonuses, rewards, and other entertaining offers.
The very idea of a casino bonus is to enable extra credits for players to have more fun, even if they fail to win big. The wagering is the required balance that keeps the entertainment on. Although the rule might make gambling seem uninteresting, this is an effective way of keeping the wheel turning in an online casino. Without it, we doubt how much value casinos could ever offer us, the players.
How does Wagering Requirement Work?
Casinos online usually place two types of wagering requirements on bonus money:
Suppose a certain casino offers a 100% match bonus of up to ₹1000and places a wagering requirement of 20x. Therefore upon registering and making a deposit of ₹1000, players would receive another ₹1000 as bonus money.
Now, if the aforementioned first condition holds true, players would need to wager only the bonus amount of ₹1000. Therefore, the total sum would be 20 X 1000 = ₹20,000, which the player has to wager before he can cash out bonus money or winnings.
Again, if you consider the second condition, the total amount that needs to be wagered would be the deposit and the bonus (1000 + 1000 = ₹2000). Therefore, to meet the WR, a player has to wager 20 X 2000 = ₹40,000 before he can cash out bonus money or winnings. In this case, the WR is doubled and equals 40x wagering on ₹1000 deposit.
Different casinos have different Wagering Requirements and rules for the same. We at CasinoWebsites.in strongly recommend you read all terms and condition to understand a casino’s rules regarding bonus wagering.
How to Identify Good and Bad Wagering Requirements on Bonuses?
1. Study the Numbers
We have discussed this in detail in another article about how to beat a slot machine. One look at the numerical value and you can tell good wagering requirements from bad wagering requirements. Remember this:
To understand this, you’d need to consider the house edge as well. This is the mathematical advantage of the casino. House edge is the difference between the true odds and the odds that an online casino pays in reality. For instance, if you win₹100 for ₹100 bet, you are playing a game with true odds.
But, casino games come with a factor called RTP (Return to Player), which determines the percentage of money a player would receive upon winning. If the RTP is 99%, players receive in average ₹99 for every ₹100 they bet. The house edge here is 1%. However, this is theoretical. Due to volatility of games, the value might differ at different points in time according to the way winning and losing sessions are defined.
Players should also note RTP is cumulatively calculated over billions of spins. To determine the true RTP of a game without brining volatility in the picture, players have to spin infinite amount of times, which is next to impossible.
Coming back to the discussion, higher the WR, more difficult would it be to cash out the bonus money. Also, high house edge combined with high WR is a recipe for disaster. Allow us to explain.
Supposing the WR has been placed only on the bonus amount, here’s how profit can be calculated on your wagered amount:
Profit = Bonus Money – (WR X House Edge)
|WR||₹100 Bonus||House Edge: 4%||House Edge: 3%||House Edge: 2%||House Edge: 1%|
Going by the same rule, also consider the fact that WR is placed on the deposit AND bonus amount. In this case, the calculations become more complicated and the WR is kind of inflated.
For instance, if we take into account 25x WR on deposit and 100% match bonus from the above table, a house edge of 1% would give a profit that equals ₹75. However, the amount to be wagered before you can cash out would be 25 X (100 + 100) = ₹5000. So, in practicality, you are actually being asked to meet a WR of 50x on ₹100 bonus.
2. What’s the Time Limit to meet Wagering Requirements?
To understand if a WR is really worthwhile, you need to read the small print and find out if it is tied to a time limit. For instance, the casino operator might require you to meet the WR within 30 days or 60 days or 90 days. Here’s how to find out what would possibly work for you.
Let’s assume a 20x WR on the bonus money needs to be met within 30 days. The casino offers 100% match bonus on your first deposit. So, you deposit ₹100 and receive ₹100 from the casino as bonus. Before you can claim this amount, you would need to wager 20 X 100 = ₹2000 within 30 days to avoid cancellation of the bonus money.
The amount might seem insignificant at first. However, you are here to gamble money and the deposit amount could go up by thousands. For instance, if you deposit ₹30,000 and receive ₹30,000 tied to 20x WR for 30 days, you would need to play through ₹600000 within a month to claim your bonus money. Think about it.
A wise thing would be to focus on the size of the bet first and the time period next. A 20x WR is great anyway. If everything is perfect, it usually takes only a few hours to play through a bonus at an online casino. The turnover goes so quick that time is never actually an issue.
3. Sticky or Non-Sticky Bonus?
Casino bonuses could be sticky or non sticky. Sticky bonuses are when the deposit is tied to the bonus funds instantly, disabling you to cash out until the wagering requirements have been met.
On the other hand, for non sticky bonuses, the deposit amount is free from wagering requirements and you can use it to play without being conditioned to wager more. Any winnings from this deposit money can be withdrawn immediately provided the amount has been forfeited.
The WR in non sticky bonuses comes into action only when you lose and start using the bonus balance instead. In short, the latter amount is kind of a free chance at playing again and is often termed as ‘life line bonus.’
So, you also need to know how you need to wager your casino money. You could spend your deposit money alone and win big. However, if it is tied to your bonus amount, you won’t be able to cash out the winnings until you have met the WR. Of course, this is all about personal preference. But, it is important that you do your homework before starting to wager real money.
4. Any Thoughts on Game Weighting?
This is a vital aspect often neglected by punters. Game weighting refers to the percentage of your wagered amount that contributes to meeting the wagering requirements. Most slots would contribute 100% toward the WR. In other words, every rupee you bet goes into meeting the WR.
However, there are a number of table games that contribute less than 100%. For instance, a game of Blackjack could contribute 10%, meaning for every ₹100 you bet, only ₹10 counts toward the WR. Game Weighting percentages are mentioned in a casino’s terms and conditions. Always make sure you check them prior to playing.
Wagering Requirements might seem like a pain after being promised such grand deals at casinos online. But, at the end of the day, they are for your own good. As a matter of fact, it is because of WR that we receive so many generous casino bonuses and promotions. Without it, depositing and cashing out casino money would have been a dull affair.
Also, if we look at it from a casino’s perspective, it makes perfect sense. There’s cash flowing out there and the gambling institutions need to make themselves financially secure. The cash pot needs to be safeguarded so it comes out as a fluky treasure for some lucky punter out there!
Lastly, regarding players, wise men say only fools rush in. While most Wagering Requirements are easy to meet, once in a blue moon you might come across one that could be demanding. You’ve got to have a horseshoe up your arse to be able to meet this one without breaking the bank.
Our advice to you is to take your time, study the terms and conditions and calculate your odds. You are being offered a choice: to go for it or leave it. Make use of this option to its full potential and you’d never be disappointed. Wagering Requirements are there for a reason. Even if you can’t take home the big moolah, a lot of extra entertainment and value betting is guaranteed.