Some casinos will give you back good % of your net losses every week, but only if you keep playing for their tiered VIP system. Does the rebate really make us take smarter risks, or does it trick us into going after losses we would normally just walk away from?
This way, casinos are essentially creating a “subscription” for regular customers, something like a bonus card for users. It gives them more influence over your decisions. Supermarkets use the same psychological tactic. You shop with them, and in return for the money you spend, you get cashback, which increases the likelihood that you’ll come back to them again.
Let us say a gamblers lose $1000, and the person is given back $100, that is very small to what the person lose. Also the person will mostly likely still lose the money and the pain will continue. Gambling should just be for fun so that the person given the rebate will also enjoy it as he enjoyed the games while losing the money. Anyone that is gambling and not enjoying it should better stop gambling for money.
Any business is interested in having customers return and bring them more money, betting companies and casinos are no exception. This cashback is simply a way to attract customers and encourage them to come back specifically to them. If someone is going to play, they’ll place a bet anyway. But if they know that at this particular casino, even in case of a loss, they’ll get a small portion of their money back, the chances of choosing that casino over others increase significantly.