How to calculate your Loyalty / Promotional Bonuses, and their impact over the company\'s cash flow and bottom line, from a strategic perspective

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3.  One of the most significant tools Loyalty
Managers uses in order to increase their
turnover (or wager, bet) is bonus offering
 By providing a promotional bonus to
players, they present an option to
extend their customers game play
entrainment, “on the house”

4.  Your Gross Gaming Revenue (GGR), is
calculated differently by different
software providers
 Your customers Life Time Value (LTV), is
in fact based on their GGR minus Costs
(or Bonuses)

5.  When attaching Wagering Requirements
(WR) to Bonuses, you in fact ask your
customers to meet a certain play
through condition, prior to redemption
 Obviously, when the House Advantage
(1 – {win/bet}) is higher, more money is
being kept, as you decrease the players’
WIN value out of the BET figure

6.  This is why games with low House
Advantage (HA), such as Blackjack, are
sometimes being disqualified when it
comes to Wagering Requirements
 Another factor is Taxation, which in
regulated markets can completely
revolutionize the way we reward players

7.  The common mean to budget a
promotion is by calculating how much
money is kept, after the WR were meet:
 Bonus = 10
 WR = x 20
 HA = 2.7%
 1 – (10 x 20 = 200 x 2.7% = 5.4); so
according to this, the cost was 4.6

8.  This perspective is limited to game play
“on the table”, and doesn’t provide any
actual understanding of the true impact
on the bottom line
 In order to do so, I suggest to look at the
promotion as a wagering event that was
caused due to the campaign, and check
the effect on physical money cashed out

9. Periodical Withdrawal, as a
ratio out of Wagering,
provides an indicator to
estimate the factual amount
lost due to the campaign

10.  By looking at this ratio, we can know
exactly how much money is expected to
leave the system, due to the extra
money inflated in during the campaign
 Of course, you can also estimate the
generated LTV due the to this bonus
 Note: those ratios are markets-specific,
and are affected by previous campaigns