Gambling Incentives Drive Higher Spending
New research from the ESRI in Ireland shows that promotional betting offers – such as free bets and money-back deals – encourage people to spend more. The strongest effect appears among individuals already at risk of problem gambling, prompting calls for tighter regulation.
Betting promotions lead to riskier choices
Researchers asked 622 men under 40 to place up to six realistic sports bets. They split participants into two groups. One group saw no offers. The other received promotions such as “money back if you lose” or “bet €10, get a free bet.” As a result, the group exposed to offers spent over 10% more on betting. Furthermore, they were much less likely to skip placing a bet.
In addition, the offers made them more likely to accept low-value odds. The study included “bad bets” with poor returns. When shown inducements, participants were three times more likely to choose these bad bets. Therefore, the researchers concluded that promotions not only increase spending but also reduce attention to value and probability.
Risk groups show stronger reactions
People with signs of problem gambling reacted more to the offers than those without such risks. Their spending rose significantly when exposed to inducements. Interestingly, individuals at moderate risk showed the strongest reaction. Meanwhile, those with the highest scores reacted slightly less – possibly because their engagement was already high.
Dr. Diarmaid Ó Ceallaigh, one of the study’s authors, commented:
“Our findings imply that gambling offers aren’t merely marketing tools, but pose a real risk of financial harm, particularly among vulnerable groups.”
Calls for regulation
Many participants misunderstood how the offers worked. For example, several assumed they would get their original stake back after using a free bet. However, this is not standard practice in the gambling market. In fact, even experienced bettors failed to understand some of the basic terms. This confusion, the researchers argue, increases the potential harm of these promotions.
In response to the findings, the ESRI suggested several regulatory changes. These include banning sign-up bonuses, capping the value of inducements, and limiting their availability to high-risk individuals. Some European countries have already adopted similar measures. Anne Marie Caulfield, CEO of Ireland’s Gambling Regulatory Authority, noted:
“The findings of this study add weight to the discourse around the harms of gambling inducements… We are committed to continued research… and the findings of this study affirm these measures.”
