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Comparative Analysis: Loyalty Programs of Online Casinos Under the German Regulation

Updated: Jun 21, 2023





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First Type of Loyalty Program

Second Type of Loyalty Program


Comparative Analysis: Loyalty Programs of Online Casinos Under the German Regulation


Legal Requirements for Online Casinos Operating in Germany


In July 2021, the new German Interstate Treaty on Gambling (ISTG) or Glücksspielstaatsvertrag (GlüStV 2021) came into effect, legalizing and regulating online gambling across all 16 states in Germany. The newly established authority - Gemeinsame Glücksspielbehörde der Länder (GGL) - oversees the market and issues licenses to operators. While the treaty has been controversial amongst operators and players, its main objective is to protect players, promote responsible gaming and prevent problem gambling. The treaty has placed the following restrictions:


  • Monthly deposit limit: Players are not allowed to deposit more than €1,000 per month across all licensed operators. This limit is meant to prevent players from spending more than they can afford to lose.

  • Stake limit on online casino slots: Players are only allowed to stake up to €1 per spin on online casino slots. This is meant to prevent players from placing high bets and losing large sums of money quickly.

  • There must be a five-second delay between each spin in online slot games. This is intended to help prevent problem gambling by slowing down the pace of play and giving players a chance to think about their wagers. As a result, the autoplay function in online slots that allow for turbo spins will no longer be accessible.

  • No live casino games or progressive jackpot slots: Live casino games, such as live blackjack or live roulette, and progressive jackpot slots are not permitted in Germany. This is to prevent players from becoming addicted to these high-risk games, which can lead to significant financial losses.

  • Reduced sports betting opportunities: Live betting is not allowed in Germany, which means that players cannot place bets on sporting events that are already underway. This reduces the opportunities for sports betting in Germany but still allows players to place bets on pre-match events.


The regulation affects operators by placing a low cap on potential earnings, restricting revenue streams, and limiting the availability of games.



The total number of online casinos operating in Germany VS the number of German online casinos that display their loyalty program on their website for non-registered visitors


There are 25 companies in Germany that have a total of 79 online casinos operating. Among them, 28 German online casinos publicly display their loyalty programs on their websites for non-registered visitors to see. It allows potential customers to preview the benefits of being a loyal player and can encourage them to sign up for an account.


However, it is worth noting that not all online casinos choose to display their loyalty programs publicly. Some may have different marketing strategies or may not have a loyalty program in place at all.





The number of loyalty programs offered by each company


The number of loyalty programs and online casinos per company varies greatly among companies. Megapixel Entertainment has only one loyalty program, while Rootz and Rabbit Entertain IT have two loyalty programs each. Skill On Net, on the other hand, has a staggering 23 loyalty programs.





Loyalty Programs in German Online Casinos



Megapixel Entertainment Limited


Wunderino welcomes both new and existing players to their family of explorers and promises that players will be greatly rewarded in their treasure hunt, regardless of how long they've been playing.


Regular and Recurring Rewards


Wunderino's loyalty program provides regular rewards to players for every bet placed. These rewards can be customized based on a player's gaming activity, and players can expect to receive regular offers. In addition, players can participate in promotions, daily competitions, and surprise offers.


Custom Rewards


Wunderino's loyalty program also offers customized rewards based on a player's activity and progress in their adventure. These rewards can include exciting bonuses and free spins. One unique feature of Wunderino's loyalty program is that free spins do not need to be wagered.





Rabbit Entertain IT Limited



The company Rabbit Entertain IT has incorporated the same loyalty program for both of their online casinos, which are as follows:







Lordlucky



Rewards Program and Benefits


The program offers a rewards program where players can earn points and enjoy exclusive benefits. New members start at level 0 and can move up based on their deposits within a 30 or 90-day period. The higher the level, the better the rewards. Points can be earned by placing real-money wagers and can be redeemed for rewards. Subscribing to the newsletter is mandatory to take advantage of the benefits. Points expire after 30 or 90 days of inactivity, depending on the level.


How to Earn Coins


Players can earn coins by participating in daily missions and completing various challenges in the casinos. Coins can be redeemed for rewards such as bonus money or free spins. Players can check their coin balance and progress in the "Missions" section of their account.



Rootz Limited



Both online casinos operated by Rootz offer the same loyalty program, which includes the following benefits:


  • Loyalty members can receive up to 20% cashback paid out weekly

  • Loyalty members get rewards and bonuses with no wagering requirements, as well as exclusive bonuses

  • Loyalty members get a personal contact person reachable by mobile phone and email.


Skill On Net Limited


The company Skill On Net operates multiple online casinos (40 in total), many of which have their own loyalty program, which, however, are quite similar and even identical to each other.


There are mostly two types of loyalty programs offered.


1) Presented as a table


The first type presents benefits and details in a table format, outlining the benefits of each of the six levels - Bronze, Silver, Gold, Platinum, Diamond, and Red Diamond.


Members can start at the Bronze level and progress through Silver, Gold, Platinum, Diamond, and Red Diamond. Each level offers new benefits and perks, including personal account managers, tailor-made offers, and fast-track withdrawal systems.


These levels can be attained by accumulating VIP points. Members earn VIP points with every bet they place, which are evaluated at the beginning of each month to determine their current level. VIP points vary based on the game, and each level requires a specific number of points to reach. The Diamond and Red Diamond levels are designed for high rollers seeking the ultimate VIP experience.


































2) As Badges and Symbols


The second type of loyalty program presents the six levels in the form of badges or symbols followed by a general description of the loyalty program.


This loyalty program also offers players the opportunity to earn points and climb six different tiers, starting from Bronze and ending with Diamond and Red Diamond. Players can enjoy a VIP experience, which includes access to exclusive tailor-made and promotional offers, a personal account manager, and other benefits such as faster withdrawals and higher withdrawal limits.


In this case, the last two levels - Diamond and Red Diamond - are invitation-only and cannot be attained by accumulating VIP points. Additionally, all VIP club members are assigned a personal account manager who provides assistance and keeps them informed about rewards.
















VegasWinner



The proportion of internet casinos in Germany that have loyalty programs categorized by levels versus loyalty programs that are not categorized by levels



The loyalty programs of the casinos can be categorized into two groups, based on levels and not based on levels. Out of the total number of casinos under consideration, 20 of them have level-based loyalty programs, while 8 do not.


The level-based loyalty programs typically involve customers advancing through different tiers or levels as they accumulate points or spend more money at the casino. In contrast, loyalty programs that are not based on levels may offer rewards or points that are not tied to specific tiers or levels. The prevalence of level-based loyalty programs among the majority of the casinos suggests that this approach might be effective in incentivizing customer loyalty and repeat business, as well as potentially attracting new customers who are enticed by the prospect of advancing through different tiers.


It is worth noting that out of the 20 casinos with level-based loyalty programs, 19 of them have 6 levels, highlighting a potential standard or common approach to loyalty program design.



Level Milestones


The given information provides the average wagering amount/points required to reach each level in a casino's loyalty program. Level 1 requires no wagering amount, while the average wagering amount required to reach level 2 is €6,926, and level 3 requires €17,290. Level 4 requires €34,563, level 5 requires €345,472, and level 6 requires around €1,3 Million.


The average number of points required to reach level 1 is 0, while level 2 requires 401 points, level 3 requires 901 points, level 4 requires 1801 points, level 5 requires 20k points, and level 6 requires 80k points.




It is noted that in some casinos, the last one or two levels may be invitation-only and cannot be reached through points.


The data presented is gathered from loyalty programs offered by 11 online casinos. These 11 casinos were chosen due to their detailed data that could be used as a benchmark. Consequently, the calculations and information about the average wagering amounts or points necessary to reach each loyalty program level are derived from the data these 11 online casinos share on their website.


Conclusion


What do most of these Loyalty Programs have in common?


  1. Reward points: The loyalty programs offer reward points for players who place bets, and the points can be redeemed for cash, bonuses, or other rewards.

  2. Multiple tiers: Most loyalty programs have multiple tiers, with better rewards available as players progress through the tiers by accumulating more points.

  3. Exclusive offers: Higher tiers in the loyalty programs offer exclusive offers, such as access to exclusive bonus campaigns, regular bonus credit gifts, and better support.

  4. Personal assistants: Some programs offer personal assistants to VIP members who can provide assistance and help resolve any issues or concerns.

  5. Cashback: Cashback is a common feature in many loyalty programs, where players can receive cashback based on the points they have accumulated from betting.

  6. Customized rewards: Some loyalty programs offer customized rewards based on a player's gaming activity and progress in their adventure.

  7. Fast payouts: Some programs offer fast payouts, and higher tiers offer super-fast payouts.

  8. Invitation-only: Some of the programs are exclusive and by invitation only, such as 888's VIP Club and the Diamond Club and Diamond Club Elite in Partypoker's VIP program.

  9. VIP events: Higher tiers in some of the programs offer VIP service at live events.

  10. VIP shop: Some programs offer a VIP shop where players can exchange their bonus points for various offers.


Which Loyalty program stood out and why?


1. Wunderino by Megapixel Entertainment Limited


The loyalty program provided by Wunderino is notable for its ability to provide consistent and frequent rewards, personalized benefits, and unexpected offers. The rewards can be tailored according to a player's gaming activity, and players can anticipate receiving regular offers. Additionally, the program offers customized rewards that reflect a player's progress in their adventure, and an unusual feature is that free spins do not require a wager. The loyalty program is readily accessible on the website and appears promptly in search results.


2. Skill On Net Limited


The loyalty program by Skill On Net is exceptional because it functions across most of its 40 online casinos. Players can begin at the Bronze level and ascend to Silver, Gold, Platinum, Diamond, and Red Diamond, with each level featuring fresh advantages and benefits, such as personal account managers, customized offers, and rapid withdrawal systems. The Diamond and Red Diamond levels cater to high rollers looking for a top-of-the-line VIP experience. The program is intended to offer a seamless and consistent experience. The loyalty program is prominently displayed on the website, and players can quickly access all the necessary information.


3. Lordlucky and lapalingo by Rabbit Entertain IT Limited


Rabbit Entertain IT's loyalty program, available at both Lordlucky and lapalingo online casinos, offers unique features that set it apart. One key aspect is the personalized benefits available to players at higher levels, such as having a personal assistant. This provides players with a customized experience that can lead to increased satisfaction and loyalty. The program also offers various levels that players can progress through by making deposits and earning points, which can be redeemed for rewards. This provides players with a clear objective to strive for and motivates them to continue playing at the casinos. The website offers easily accessible information presented in a simple and clear format. Moreover, Lordlucky's modern and sleek design is easy on the eyes and contributes to a positive gaming experience.



Which of the aforementioned conclusion points would help online casinos develop their Loyalty Program for the German market?


The information provided about the loyalty programs at Wunderino, Skill On Net, and Rabbit Entertain IT can all be beneficial to other operators in developing their own loyalty programs for the German market. However, the following points can be particularly helpful:


  • Casinos can consider providing consistent and frequent rewards to players, personalized benefits, and unexpected offers to increase customer satisfaction and loyalty, similar to what Wunderino offers.

  • Casinos can design their loyalty program to function across different platforms and provide multiple levels of rewards, similar to Skill On Net, to cater to different types of players.

  • They can consider offering personalized benefits to players at higher levels, such as having a personal assistant, as Rabbit Entertain IT does, to provide a customized experience and increase player loyalty.

  • Online casinos can present their loyalty program in a simple and clear format, similar to what Rabbit Entertain IT and Wunderino do, to make it easy for players to understand and access the necessary information.

  • Many German online casinos do not provide comprehensive information about their loyalty programs, and sometimes it can be difficult to find relevant details.

  • It seems that only a small percentage, approximately 35%, of German online casinos have easily accessible and pertinent information regarding their loyalty programs on their websites. However, one online casino that stands out is Wunderino, as it promptly displayed its relevant loyalty program page after conducting a Google search using the German word for "loyalty program" (treueprogramm) together with the casino's name. To enhance accessibility, Platincasino could improve the visibility of its loyalty program by using keywords like Treueprogramm, Treuepunkte, VIP, and Club, making it more discoverable through search engines.

  • The significance of implementing a loyalty program extends beyond retaining players on your website. It ensures that your players won't switch to other regulated casinos that openly disclose their information online. Furthermore, it enables you to compete against unregulated casinos, which provide even more captivating incentives and are easily accessible from any location in Germany.


Overall, online casino operators can draw inspiration from these loyalty programs to create a program that caters to the needs and preferences of players in the German market and promotes long-term customer loyalty.


T05/10/2023

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