Free bets coax people into betting more, including problem gamblers – study

By Gráinne Ní Aodha, PA

Free bets and moneyback guarantee offers lure more people to place a bet and spend more money, particularly those at risk of problem gambling, a study has found.

The ESRI’s Behavioural Research Unit also found that people were three times more likely to spend money on bad bets after being shown an offer.

The new research, funded by the Gambling Regulatory Authority of Ireland (GRAI), used a controlled experiment to test whether offers, or “inducements”, alter betting behaviour.

The experiment was run with a sample of 622 men under 40 just prior to the Euro 2024 football championship.

Participants were given money to place up to six realistic bets on Euro 2024 matches.

Half the participants, selected at random, were shown offers of free bets and moneyback guarantees on some bets, while the other half saw no offers.

These inducements caused participants to spend over 10% more and reduced the number of people opting not to bet by a half.

Some bets were intentionally designed as “bad bets”, offering odds well below market rates, meaning participants were better off choosing other options or not betting at all.

Participants exposed to the offers were three times more likely to spend money on these bad bets.

The study also found that those at risk of problem gambling were more affected by the inducements than those not at risk.

After the experiment, participants answered questions about their understanding of the inducements.

Even though most of the participants were regular bettors, most did not realise that there were restrictions on free bets, and many did not know that they would not receive their stake back if they won a free bet, both of which are standard practice in the market.

Dr Diarmaid O Ceallaigh, of the ESRI’s Behavioural Research Unit, said that the findings call for stricter regulation of gambling offers in Ireland.

He 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.”

Chief executive of Gambling Regulatory Authority of Ireland Anne Marie Caulfield said she welcomed the the findings and said they “add weight to the discourse” around the harms of gambling inducements.

She said: “We are committed to continued research to understand the extent of gambling in Ireland, the drivers of gambling harms and the impact of inducements and advertising on gambling behaviours.

“We are actively engaged with a broad range of stakeholders including with industry, charities and with people who have lived experience of harm caused by gambling.

“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.”