Over the past five years, the online casino market has exploded in growth. According to industry reports, the total gross gaming revenue from online gambling globally reached over $92 billion in 2024, more than double the revenues from 2020. This meteoric rise has been fueled by several factors, most notably increasing broadband access and advances in mobile technology that have made betting from smartphones and tablets extremely convenient and accessible.
However, for online casinos to sustain long-term growth, they must focus on building robust loyalty programs that incentivize players to return. The loyalty models of the past largely relied on opaque point systems that left many customers distrustful of whether rewards were allocated fairly. The loyalty programs that will dominate in 2025 and beyond will be those that emphasize transparency, intelligent reward scaling, and added member benefits.
Failure of Legacy Loyalty Models
The early loyalty models adopted by online casinos were rudimentary point systems similar to those hotel and airline programs used. For every dollar wagered, players would earn anywhere from 0.1 to 2 loyalty points. After accumulating set point thresholds, players at Yabby Online Casino could redeem points for cash and comps (free plays, bets, room nights, etc.).
On the surface this seems reasonable. However, these programs failed in several key areas:
- No Transparency in Point Values – The exchange rates of points to rewards were complex and opaque. Players could not easily determine if rewards were fair.
- Questionable Reward Scaling – Higher tier players often felt rewards did not scale proportionally to play volume. A Blackjack player betting $500 per hand expected far greater comps than a penny slot player.
- No Value Beyond Reward Points – Legacy programs focused exclusively on the accumulation and redemption of points. There were no additional membership benefits.
This lack of transparency into point values and reward scaling frequently left players distrustful of whether loyalty programs were truly equitable. At the same time, competing casinos began using aggressive “no wagering requirements” deposit bonuses to poach players from one another. This precarious environment led many operators to rethink their loyalty models entirely.
Rise of Transparent Scaling Models
In 2023, forward-thinking online casinos began rolling out radically different loyalty program models centered around transparency and intelligent reward scaling mechanics. The leaders in this regard have been BetMGM, DraftKings, Betway, and Unibet. Below is a comparison of some of their scaling mechanics:
Operator | Scaling Mechanic | Key Attributes |
BetMGM | Fixed reward tiers | Clearly defined cashback rates for 5 tiers, from 4% (Silver) to 10% (Black) |
DraftKings | Revenue contribution | Rewards based on each player’s overall GGR contribution |
Betway | Intensity scoring | Custom algorithm weighing frequency, risk, game volatility |
Unibet | Hybrid: Revenue + Intensity | Rewards driven by hybrid metric |
What these models have in common are transparency and fair scaling. Players have clarity into their projected reward earnings. Scaling mechanics like revenue contribution and intensity scoring ensure that rewards correlate appropriately to an individual’s value generation.
This also incentivizes more balanced player behavior that aligns to operator profitability. For example, rewarding player intensity drives engagement across a wider spectrum of games rather than extreme specialization on a single product.
Added Member Benefits
In addition to fair and transparent reward scaling, the new generation of loyalty programs focuses heavily on providing members with exclusive added benefits unavailable to standard players. These member perks fall into 3 major categories:
- VIP Events – Invitations to exclusive in-person parties, gambling tournaments, and destination trips.
For example, BetMGM’s invitation-only “Playground” events for top Blackjack and Roulette players.
- Personalized Services – Assignment of a VIP host for booking travel, entertainment, and managing reward redemptions. Also includes priority customer service.
Unibet Red members get their own personal account manager.
- Curated Content – Access to privileged information to improve gambling performance, such as strategy guides, advanced analytics tools, and notifications of time-sensitive promotions.
DraftKings offers extensive courses at DraftKings University to help players develop games skills.
These members-only benefits create “halo” effects that drive perception, satisfaction, and ultimately loyalty and retention.
Future of Online Casino Loyalty
It’s evident based on adoption trends that principles of transparency, intelligent scaling, and added VIP benefits will dominate the next generation of online casino loyalty programs. Players have greater access to data and benchmarking information than ever before, and they will flock to operators that demonstrate clearly how their behavior drives fair rewards.
This also creates upside opportunities for operators willing to innovate and test new models – especially hybrid approaches that balance universal simplicity with hardcore appeal. Although the costs of some benefits like personal hosts must be weighed carefully relative to potential lift.
As the internet gambling industry matures, loyalty programs will rightfully move beyond being cost centers to become strategic levers that create mutual value – but only for those willing to commit fully to centering them around the player.