Gambling offers – such as free bets and moneyback guarantees – entice people to bet more, with those at risk of problem gambling especially susceptible, according to new research from the ESRI’s Behavioural Research Unit.
A new study commissioned by the Gambling Regulatory Authority of Ireland (GRAI) /Department of Justice, Home Affairs and Migration and undertaken by the Economic and Social Research Institute (ESRI) shows that betting and gambling companies offering special offers or inducements encourages people to gamble more than they would otherwise, even when the odds offered are “bad”.
Special offers or inducements, such as free bets and moneyback guarantees are regularly used by gambling companies in their marketing campaigns. The study found that vulnerable people such as those at higher risk of becoming problem gamblers, were most at risk of gambling more, and losing more, as a result of being offered inducements.
In a controlled experiment run with a sample of 622 men under 40, participants, were given money to place up to six realistic bets on the Euro 2024 football tournament.
Half of the participants were randomly selected and shown offers of free bets and moneyback guarantees on some bets. which caused these participants to spend over 10% more than those who were not given inducements. The inducements also reduced the number of participants opting not to bet by nearly half. Even inducement bets that were designed as "bad”, showing odds far below market rates, were undertaken by participants in this group, who were three times more likely to spend money on “bad” bets.
These findings illustrate the harm inducements cause, particularly to those who are susceptible to gambling harm.
Under the Gambling Regulation Act 2024, the legislation which underpins the work of the GRAI, inducements or encouragement to gamble further will soon be an offence and licensed operators will no longer be allowed to offer free bets which are targeted at individuals and specific groups. Multiple European countries have also begun to regulate inducements.
Participants were surveyed after the study on their knowledge and understanding of inducements. Even amongst regular betters, most did not know that there were restrictions on free bets and that they would not receive their stake back if they won a free bet.
Paul Quinn, Chairperson of the GRAI, said:
“I very much welcome this research from the ESRI examining the impact of inducements to gamble on gambling behaviours. Having a clear evidence base is critically important to the GRAI as we commence our work in regulating the gambling industry. This latest research will help inform that work and in educating the public on this matter.
This study clearly indicates the damaging effect of certain practices around inducements. It underlines the importance of the provisions of the Gambling Regulation Act in limiting a person’s exposure to inducements to gamble. We look forward to working with Minister O'Callaghan in addressing the issue as we implement the new regulations.”
Anne Marie Caulfield, CEO of the GRAI, said:
“The ESRI’s findings confirm that not only is the general public not aware of the dangers associated with inducements to bet, but also that the impact of these inducements go beyond simple marketing by betting companies.
It is our responsibility to ensure that gambling operators do not encourage excessive or compulsive gambling behaviour, and that we protect vulnerable people in our society, such as children and young people and those more likely to experience gambling harm.
The Gambling Regulation Act 2024 sets out obligations for licensees in the way in which inducements can be offered, including a ban on targeted inducements, and the findings of this study affirm these measures.”
Diarmaid Ó Ceallaigh, Postdoctoral Research Fellow, Behavioural Research Unit, ESRI, said:
"Our findings imply that gambling offers aren’t merely marketing tools, but pose a real risk of financial harm, particularly among vulnerable groups.
The results support the case for stricter regulation of gambling offers in Ireland, following steps already taken in other European countries, such as banning sign-up bonuses, restricting offers to at-risk individuals, and capping their value."
The full paper can be found here
