Over the years, the betting industry has undergone immense growth and development. Betting is in varying forms, but one of the most popular is sports betting. Although sports betting isn’t considered legal in some countries, the global market is worth an estimated $194.63 billion ( Reference: Statista). Online sports betting, on the other hand, is estimated to be worth $61.5 billion and is projected to peak at $114.4 billion by 2028.
The global betting market is enormous, resulting in a massive amount of betting sites all over the world. There are hundreds of gambling providers, and this vast amount of bookmakers means a fiercely competitive market. So, how do these bookmakers stay in business? Through several marketing strategies and sports betting offers, one of which is loyalty programs.
Loyalty programs are not a recent inclusion in betting. Customers are crucial to the survival of any bookmaker, and loyalty programs have been used to keep customers from leaving and also bring in new users. Loyalty programs sometimes include free wagers, discounted bets, prizes, and rewards. The major aim of loyalty programs is to keep punters wagering by signing up for these loyalty programs.
What is a loyalty program?
A Loyalty program, as its name implies, is an automated structure that keeps track of a punter’s wagers and all betting activities on a bookmaker. The accumulation of all wagers is then rewarded with loyalty points which can be used to redeem a prize, cash, reimbursement of bet loss, rewards, tickets to events, enhanced odds, free bets, luxury trips, and other bonuses based on the structure of the program.
Most loyalty programs are based on levels or tiers, and the more money moves in and out of a punter’s account, the higher they move on the program’s tier.
How Loyalty Programs function
The logic behind loyalty programs is simple – the more a customer wager, the more rewards they receive, or the higher they become qualified to receive these rewards. Of course, the biggest or most expensive rewards are reserved for customers who place the biggest wagers.
Sportsbooks have different structures when it comes to their loyalty program. Some sportsbooks require a customer to place the maximum bet to be qualified for incentives in the loyalty program. Some require placing massive bets and not necessarily the max. bet of the sportsbook. The process of giving out incentive also differ in each sportsbook.
The only thing in common with all bookmakers is that incentives are given based on loyalty points. These points are calculated using an automated system that also varies from site to site. Most sites usually give loyalty points depending on the amount of money wagered, the number of times a punter wagers, and the kind of wager placed.
Each site has its method of calculating its points, but they are typically based on the number of bets made, the amount of money bet, and the type of wagers being made.
For punters who wager using a mobile version of sportsbooks, they are sometimes offered the opportunity to redeem the prizes and rewards received online in a land-based casino. However, the condition for this is that the online site must be affiliated with the land-based site.
Types of Loyalty Programs
Most sportsbooks have different levels, tiers, or categories of loyalty programs. There is the points-based loyalty program, tier-based loyalty program, and land-based loyalty program. Most bookmakers opt for a combination of the points and tier-based loyalty program whereby the more points earned by wagering, the higher punters move forward. However, to move from one tier to another, a specific amount of points must be accumulated.
Each tier comes with its distinct incentives and rewards reserved for customers who have acquired enough points. A tier may have rewards like tickets, gifts, etc., depending on the creativity of the sportsbook.
Every loyalty program comes with conditions attached, and to become eligible for them, it’s recommended to stick with one sportsbook. While shopping around for the best betting site is advisable, one of the quickest ways to gain access to loyalty programs is by consistently wagering on a site.
Loyalty programs have tons of benefits, and one free bet gotten from a loyalty program can mean the difference between endless loss and a jackpot.