A new study from the Economic and Social Research Institute (ESRI) has revealed that gambling offers – such as free bets and moneyback guarantees – entice people to bet more, with those at risk of problem gambling especially susceptible.
With the regular use of key terms and offers including free bets, moneyback guarantees and new account offers, the marketing is heavily centered around getting people to bet more regularly – and it is reportedly putting people at risk of problem gambling.
Vulnerable gamblers, 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.
The figures reflect that as well; 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 and this resulted in them spending 10% more than those who weren’t.
Worryingly, 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. Further emphasising how problem gambling can materialise quickly.
The whole study was commissioned by Gambling Regulatory Authority of Ireland (GRAI) /Department of Justice, Home Affairs and Migration and Paul Quinn, Chairperson of the GRAI, spoke about how the results will inform education to help prevent problem gambling.
“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.”
Another key voice speaking on the subject was the CEO of the GRAI, Anne Marie Caulfield, who opened up a wider discussion about how intense marketing is from gambling operators. Sky Bet, one of England’s most popular online bookmakers, were found guilty of unlawfully targeting a former problem gambler using cookies and third-party data.
In Australia, they are predictions that there could be new regulation with gambling ads in the near future which have taken over mainstream TV ads, which have dismayed the general population. Plus, in some countries such as Romania, celebrity endorsements of gambling has been banned.
Caulfield 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.”
Postdoctoral Research Fellow at ESRI, Diarmaid Ó Ceallaigh, claimed that the results suggest that there is a strong case for stricter regulation of offers in Ireland, that could include banning sign-up bonuses, restricting offers to at-risk individuals and capping their value.
With wider awareness from gambling regulators, research studies such as this and movement in laws in specific countries around the world, we could see strong regulation come into effect in Ireland and other countries in the future.
