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CASHBACK BONUSES

 

Introduction

Cashback bonuses refund a percentage of net losses within a specified time period. The bonus only pays, if you have a net loss during this period. Cashback bonuses usually do not have a wagering requirement. Playing cashback bonuses often requires a high risk tolerance and is not for everyone. However, bonuses may have a high EV, as well as unlimited reloads.

 

Comparing to Sticky and Clearplay Bonuses

Mathematically, cashback bonuses are similar to sticky bonuses and Clearplay bonuses when cashed out early. Consider a 25% cashback bonus up to $100. If you wagered on no-house-edge coin flips until you either gained or lost $400, then half the time you would make a gain of $400 during wagering, and half the time you would lose $400 during wagering. When you lost $400, you would have a net loss of $300, after the 25% up to $100 cashback bonus was given. This makes the EV of the bonus ($400 - $300)/2 = $50. The average gain of a cashback bonus is listed below:

Average Gain = Bonus * Chance of Bust - Average Wagering * House Edge

Recall that this is the same formula as the EV of a sticky bonus or the EV of a Clearplay bonus when cashed out early. While the EV of a cashback bonus is similar to a sticky/Clearplay with 0xB wagering, the risk level may differ. With the same bonus and strategy, the average size of a loss (and a win) is smaller with cashback bonuses than sticky or Clearplay bonuses. For example, Yukon Gold offers a 100% cashback bonus up to $50. With a coin flip to 2x balance strategy, the EV of the bonus is $25. Half the time you win $50 and half the time you lose, and get your full $50 back, making the EV ($50 - $0)/2 = $25. With a 100% sticky bonus up to $50 and the same strategy, the EV is ($100 - $50)/2 = $25. In both cases the EV is $25, but the cashback bonus has no risk of a loss, and the sticky bonus has a 50% risk of losing the full deposit size.

Unfortunately, there aren't many 100% cashback bonuses. Cashback bonuses are usually 10-25%. And this low percent results in a dramatically increased risk of a large loss, for both cashback and sticky bonuses. In the 25% bonus up to $100 example at the start of this section, you'd have a good chance of losing $300 with a cashback bonus and $400 with a sticky bonus.

 

Strategy

Begin by choosing a deposit size such that if you lose the full deposit, you will receive the desired cashback bonus size. For example, if a casino offers a 25% cashback bonus up to $100, you would need to deposit $400 to receive the maximum bonus. As expected, optimal strategy for cashback bonuses is similar to optimal strategy for sticky or Clearplay bonuses. Begin by making large or high-variance bets on a low house edge games until reaching a target. Cashback bonuses generally do not have a wagering requirement, so there is little need for two-tier betting. Instead cashout after reaching the target if you win, and wait for the cash to be credited if you lose.

One important consideration is making a single bet or few very large bets may get you flagged as an advantage player and banned from future offers. This is especially true for cashback bonuses over longer periods, such as monthly or weekly offers. Instead of a single full-bankroll bet, I recommend making half-bankroll bets or less on blackjack. If you keep playing blackjack until you either double your bankroll or bust, then the end result is similar to a full bankroll bet. Another good alternative is to make smaller bets on a higher variance game like video poker, then double up (using video poker double function) until reaching a target gain. There are countless other alternatives. Choose a game, make large or high-variance bets, then stop if you have a large net win.

 

Casino List

A partial list of casinos offering cashback bonuses is below. This list is far from complete.

Table Definitions Software -- The software used by the selected casino. Group -- Casinos often are linked together in e group. These groups are listed in the table. I recommend not simultaneously playing two sign up bonuses from the same group. Wait until payment is received, then play at the next casino. Bonus EV -- EV stands for Expected Value. Bonus EV indicates the average expected gain of the bonus with the following play -- Make high variance bets to a 2x target, then playthrough bonus. Max Bonus -- The bonus that is given with the maximum allowed deposit for that bonus. If the max value is expressed as one number + another, then there are two bonuses, usually one signup bonus and one deposit method bonus. If the value is expressed as a range, then the bonus is dependent on return from a free play offer. Bonus % -- Bonus % indicates the ratio between the bonus and your deposit. If a $300 bonus is given on a $100 deposit, the bonus % is 300%. Wager -- Wager indicates the wagering requirement for the bonus. All wagering requirements are expressed in terms of the bonus. For example, the wagering requirement at Golden Palace is 20x(bonus+deposit). With a $100 deposit, the wagering requirement would be ($300 + $100)x20 = $8000. $8000 is 27x the $300 bonus, so the value in the table is 27xB. Clearplay bonuses may list two wagering requirements -- the minimum wagering requirement and the wagering requirement on the game French Roulette. "0xB / 60xB" indicates that you can cash out your winnings immediately (0xB), and if you complete the playthrough on French Roulette there is a 60xB wagering requirement. Game -- Game indicates the recommended game to play the bonus. USA? --"No" means the casino allows no players from the United States. "Yes" means the casino allows players from anywhere in the United States. "Some" means the casino allows players from some US states, but not others. Microgaming casinos typically allow players in 39 US states. They do not permit players from 11 states where gambling is legislated illegal or where there have been related court cases -- Illinois, Indiana, Louisiana, Michigan, Nevada, Oregon, South Dakota, Washington, Wisconsin, New York and New Jersey. Notes -- Notes indicates other important things to take note of, such as associated warnings.

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