Study finds inducements lead to gamblers spending more
The study, commissioned by the Gambling Regulatory Authority of Ireland (GRAI), the Department of Justice and undertaken by the Economic and Social Research Institute (ESRI) found that these offers encourage people to gamble more, even when poor odds on a bet are offered.
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.
As part of the study, 622 men under 40 were given money to place up to six realistic bets on the Euro 2024 football tournament.
Half of the participants, who were randomly selected, were offered inducements, which led to them spending 10% more than those who were not offered inducements.
The inducements also reduced the number of participants opting not to bet by nearly half.
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.
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.
Inducements soon to be an offence
Under the Gambling Regulation Act 2024, inducements or encouragements to gamble further will soon be an offence and licensed operators will no longer be allowed to offer free bets.
Multiple European countries have also begun to regulate inducements.
"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," said Paul Quinn, GRAI Chairperson.
"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," he added.
GRAI CEO, Anne-Marie Caulfield said that the study highlighted a lack of public knowledge regarding inducements to bet.
"The impact of these inducements go beyond simple marketing by betting companies," she said.
"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," she added.
Increase in online gambling
ESRI Research Officer Diarmuid Ó Ceallaigh said that there had been "huge growth" in online gambling over the last decade.
"There's a lot more risk associated around online gambling because of the fact that you just can't get away from it if you have a gambling problem," he said on RTÉ's Morning Ireland.
"At least if it was a bookmakers, they have to close at night, whereas you just have 24/7 access to your phone with online gambling and it's more difficult to control it."
Mr Ó Ceallaigh said the difference between these inducements and offers on other products is that gambling is highly addictive.
"The fundamental difference between, say an offer on a gambling product and an offer on something like clothes, is that gambling is a highly addictive product and there's a high rate of problem gambling in Ireland," he said.
"We showed in a report two years ago that one in 30 adults in Ireland suffer from problem gambling, so there's a fundamental difference there."
Mr Ó Ceallaigh said that the implications of the study show that these offers pose a real risk of financial harm, particularly to vulnerable people.
"There's certainly a case there for restrictions and regulation of inducements or offers to go beyond what's currently legislated", he added.
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