Online casino bonuses explained

What a casino bonus really is

A casino bonus is usually restricted money: credit you can play with but can’t withdraw until you’ve met the offer’s conditions. New Jersey’s regulations define a “restricted Internet gaming credit” as funds that “cannot be cashed out until a wagering requirement or other restriction … is met,” and Pennsylvania uses an equivalent term.

The headline number — “up to $1,000” — tells you the most you could get, not what the offer is worth. What decides the value is the fine print, above all the wagering requirement. That’s why we value welcome offers on their terms, not their size, in our ranking of the best US online casinos.

Wagering requirements, with examples

The wagering (or playthrough) requirement is how many times you must bet the bonus — or the bonus plus your deposit — before it turns into cash.

Example A: bonus-only requirement. You get a $100 bonus with a 15x requirement.

• You must wager 15 × $100 = $1,500.
• On a slot that pays back 96% (a 4% house edge), you’d expect to lose 4% of that: $60.
• The bonus is worth about $100 − $60 = +$40 on average.

Example B: deposit-plus-bonus requirement. You deposit $100, get a $100 match, and must wager 15x the total.

• You must wager 15 × $200 = $3,000.
• The expected loss at a 4% edge is $120.
• The offer is worth about $100 − $120 = −$20 on average — it costs you money.

Same “15x,” very different deals. Always check what the multiple applies to.

Game weighting: why table games count less

Most bonuses don’t let every game count fully toward wagering. One operator’s schedule published by the Wizard of Odds, for example, counted slots at 100%, table games at 20%, blackjack and video poker at 10%, and craps and live dealer games at 0%. US casinos list their own weightings in each offer’s terms.

Low contribution multiplies what you have to bet. The formula is:

required wagering on a game = wagering requirement ÷ contribution rate

So a $1,500 requirement becomes $7,500 of blackjack bets at 20% contribution, or $15,000 at 10%. That’s why playing low-edge games rarely makes a bonus “beatable” — casinos weight them down on purpose. See RTP and house edge explained for what each game costs.

How to work out what a bonus is worth

A simple rule of thumb, used by the gambling mathematician Michael Shackleford (the “Wizard of Odds”), is:

Expected value ≈ bonus − (required wagering ÷ contribution rate) × house edge

If the answer is positive, the bonus is worth claiming on average; if it’s negative, you’d expect to lose more than you get. Put another way, the break-even house edge is the bonus divided by the total wagering: a $1,000 match that needs $50,000 of play only breaks even on games with a house edge of 2% or less (a 98% RTP).

The formula assumes you bet flat amounts, finish the wagering and know the house edge. It ignores:

• variance — you can run out of money before you finish;
• time limits — unfinished bonuses expire;
• maximum-bet rules — betting more than the cap while a bonus is active can void it;
• excluded games and taxes on winnings.

Common bonus types

Low-wagering credits hold their value best. A $500 lossback credit with 1x wagering needs $500 of play, which costs about $20 at a 4% edge, so it’s worth about $480 — but remember it’s only paid if you’ve already lost, and those losses carry the normal house edge. Bonus spins are simple to value: 100 spins at $0.20 on a 96% slot are worth about 100 × $0.20 × 0.96 = $19.20 before any wagering on the winnings.

Your rights in regulated states

This is one of the biggest differences between licensed and offshore casinos. In the states we checked, regulators require:

• Clear terms, filed in advance. New Jersey requires promotion terms to be filed with the Division of Gaming Enforcement and to state the time limits, wagering requirements by game type, eligible games, the order in which your money and bonus money are used, withdrawal restrictions and cancellation rules — in “clear and conspicuous” language. Pennsylvania and Michigan have similar rules, and Pennsylvania requires every promotion to carry a problem-gambling helpline message.
• The right to cancel. New Jersey, Pennsylvania and Michigan require a clear way to cancel a bonus. You keep your unrestricted cash and give up the restricted credit.
• No caps on winnings after you meet the terms. In those three states, once you’ve completed a promotion’s terms, the casino can’t cap or limit your winnings. “Maximum cashout” limits are a feature of offshore offers.
• Honest advertising. Connecticut requires that if you must wager your own money to unlock a bonus, that amount appears in the same font size and style as the bonus amount.

Tips before you claim

• Read the terms first, especially the wagering multiple, time limit, eligible games and maximum bet.
• Prefer low wagering — 1x offers usually beat bigger offers with 15x or more.
• Play games that count 100% if you want to finish the wagering, and know their RTP.
• Set a deposit limit before you claim. Bonuses exist to make you play more; decide your budget first. See our responsible gambling guide.
• Remember taxes: winnings from bonus play are taxable — see our gambling tax guide.

The bottom line

A bonus is only as good as its terms. Work out the wagering in dollars, multiply by the house edge, and compare that with the bonus. For casinos whose offers hold up — and that are licensed in your state — see our ranking of the best online casinos in the US and how we rank online casinos.