Surprising term. Eh? It is a logical strategy based on using casino bonuses to make money with minimal or no risk. A somewhat scientific and mathematical approach to exploit free bonus offers from online gambling sites.
The first time I saw the term, Casino Whoring on the internet, I found it quite amusing myself. I read the article and it turns out that the term was not that far off from the meaning of the word. It is a strategy of using free casino bonuses to try and make a guaranteed profit out of it. Then withdraw the winnings and move on to another online casino employing the same technique of bonus hunting as you go along. The term casino bonus whoring is even more appropriate. Because the process involves entering an online site, playing the new player welcome bonus only till the risks becomes high, then withdrawing the money, finding another site with the same type of bonus and hopping onto it. The ‘formula’ or technique actually makes logical sense.
Online Casino Sign up bonuses:
Almost all online casinos offer first time members bonus which are also called Casino Deposit Bonus, Sign Up Bonus, Welcome Bonus or First, Second etc. Deposit Bonus. This type of bonus are given based on the first or second deposit a new player makes. It usually is in the form of a percentage of the deposit amount. It can be as big as $500-$3000 depending on the casino. For eg. Party Casino is currently offering 100% bonus on first deposit upto a limit of $200. So when a new player deposits $200, he is given another $200 as free bonus making his total wagering capital to $400.
The bonus withdrawal rule:
Most of the free casino bonuses, even the no deposit casino, have certain cash-out rules or requirements. This is called Wagering Requirements(WR). The rule is that a total wagering or bet of the bonus amount plus deposit, a given number of times should be made before any withdrawal from the account is permitted. To clarify, in Party Casino’s offer given above, the WR is 40xB+D, meaning 40 times deposit. So if a player deposits $200 and received another $200 in bonus, the WR would be 40 times $400 i.e. $16000. This is the minimum bet that must be fulfilled.
The Casino Whoring Strategy:
Payout Percentage(PP) for table games like Blackjack is usually reported as 99.5% while games like Slots are usually. Analyzing this figure, it means that for every cycle of bets, the House Edge(HE) i.e. The money pocketed by the Casino House for table games is 100-99.5 = 0.50% only. Fortunately in the specific case of our example, Blackjack and slots games are also counted for fulfilling the WR (This will not always be the case. Many Casinos, more so the medium-sized and smaller ones, will not permit table games which have higher PP than say slots to be played for fulfilling WR. Some of them may permit but may impose a higher WR for eg. 80xB+D). Clearly, the first choice has to be table games, the highest PP. Now for some arithmetic:
Total investment to be made = $200. WR = $16000 (40×200+200). Expected loss on fulfilling WR = 16000×0.50%(HE) = $80.
Total cash in account = $200+$200 = $400. Substract the expected loss – 400-80 = $320. Net Profit = $120!
Now, time to withdraw and hop onto another site that has promising bonus!
Does this mean winning is Guaranteed?
The calculation above is based on the assumption that PP will be exactly 0.5% and that the play cycle be turned over during the play. The fact is that this cannot be guaranteed. That said, the risk associated with the play is certainly minimized. Even if the House Edge turns out to be 1%, there still is a net profit of $40 as per the example above. If a player plays carefully, there is the option to withdraw the deposit money before loss if the investment turns out to be bad.
Whatever is said and done, it still is a combination of luck and simple arithmetic. Yet there are guys reporting on blogs that they make money using similar strategy.