What Are the Differences Between Rebates and Cashbacks?

Everyone gambles for one reason – to win money. While some still prefer visiting a land-based venue for the purpose, a lot of people choose to gamble online. Online gambling has numerous advantages, such as bonuses. Most online operators today offer a wide variety of casino bonuses and discounts to their clients.

Undoubtedly, if you have played at online casinos for a while, you are familiar with the various types of casino bonuses, like bingo bonus money. While most casino bonuses are quite straightforward like, however, there are some bonus types which even experienced players find difficult to understand.

Rebates and cashbacks are arguably the most prominent examples of casino bonuses that are difficult to understand. No wonder – the two bonus types are not much different from one another. And yet, there are a few considerable differences between them. In order to get the most from those casino bonuses, you should know what differentiates rebates from cashbacks.

1. Casino Rebates Explained

Essentially, casino rebates represent a bonus percentage applied to the total amount of money wagered over a specific period of time. However, some operators limit the games eligible for this type of bonus. In such a case, the rebate will be based on the total value of the bets placed on the eligible games exclusively.

Naturally, casino operators determine the rebate bonus percentage independently of one another. However, most operators usually offer rebates that award players 0.2 per cent to 0.8 per cent of the total  amount of money wagered over a specific period. As it could be guessed, when players wager more money, they receive bigger rebates. It should be noted that rebates could be subject to maximum limits and rollovers. Another thing to take into account is that operators may offer different rebate amounts for tiered turnover structures.

As mentioned, rebates are cash prizes based on the total value of wagers placed over a period of time. That period is likely to vary in different casinos. And yet, most casinos will award the rebates once a week or once a month.

You might think the rebate is not a generous casino offer, but you are wrong. Imagine you have a 0.8 per cent (also known as unlimited) rebate at a casino featuring eight deck live baccarat game – a game with 1 per cent casino edge. Thanks to the rebate, you will almost completely eliminate the house edge – the house edge will melt down to just 0.2 per cent. However, in order to receive a 0.8 per cent rebate, you will have to commit a considerable amount of money to the casino.

Finally, having explained how the casino rebate works, let us illustrate it with an example. Imagine you are offered a 0.5 per cent rebate for all bets placed at a casino in one week. In the end of the week you have placed £1,000 and lost £100. Your rebate is calculated thusly: 0.5 per cent x 1,000, so your rebate will be £50. You see, the amount of money lost or won during that week is of no connection to how the rebate is calculated.

2. Casino Cashbacks Explained

Not unlike rebates, cashbacks represent a bonus percentage awarded to players on some basis. Unlike rebates, however, cashbacks are applied to the total net losses, and not the total amount of money wagered, in a given period of time. Again, each casino decides what percentage to offer. In most cases, the cashback varies between 5 and 25 per cent.

In order to get the most from cashback bonuses, players need to know their terms and conditions. First of all, keep in mind that each casino has different bonus terms and conditions and it is important to read them thoroughly before playing. Having said that, some casino operators put a cap on the games available for cashback bonus. Other operators offer different cashbacks for different games.

Usually, casinos put a cap on the maximum amount of money that can be received from the cashback bonus. What is more, some operators require players to lose a specific amount of money in order to unlock the cashback bonus. Last, but not least, some casinos will offer players cashback bonuses only if they have not claimed another bonus during the cashback promotion.

Cashback bonuses can be really beneficial for players experiencing a losing streak, as it enables them to take back a percent of the money they have lost. To portray just how helpful it can be, let us give an example. Suppose you are offered a 10 per cent cashback bonus over one week, and during that week you lose £100. Your cashback bonus, then, will amount to £10. As you can see, the total amount of money wagered is of no importance – cashback bonus is based on your total losses exclusively.