ESRI and gambling regulator studied gambling promotions by having participants bet on the Euros
The ESRI has said the findings of the study show a need for stricter regulations on the gambling industry, especially when it comes to offers designed to encourage more betting.
The research, which was funded by the Gambling Regulatory Authority of Ireland (GRAI), used a controlled experiment involving 622 men interested in the Euro 2024 football competition.
The men were randomly split into two groups – one which was presented with offers, or 'inducements', and one which was not.
The experiment was conducted using a bespoke gambling system that was not connected to any betting company.
The participants were given money to place up to six 'realistic' bets on Euro games.
After the study, all unspent money and winnings were converted into raffle entries to win a €100 voucher, which the ESRI's Dr Diarmaid Ó Ceallaigh told The Journal was 'standard practice' in experiments of this kind.
The article documenting the experiment said this raffle system ensured that the participants' choices were 'incentive-compatible'.
'The more money participants ended up with, the better their chances of winning €100.'
The odds for most of the bets were set at the market rate at the time of the study,
but some bets carried odds that were much less favourable, referred to in the study as 'bad bets'.
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According to the ESRI report on the study, 'For these 'bad bets', even if the bet came with an offer, participants would be better off choosing something else or not betting at all'.
'Without offers, less than 10% of participants chose bad bets. But when the inducements were presented, people were three times more likely to choose a bad bet and they spent three times more on them,' the ESRI's report on the study said.
The results of the study indicated that once gamblers are presented with inducements, they bet more than those who were not given such offers.
Before seeing any offers, both groups bet similar amounts on their first bet, the ESRI report said.
'But once the group presented with offers had received a first free bet, they proceeded to bet more than the other group on every subsequent bet and were less likely to opt not to bet.'
These offers also affected people at risk of problem gambling.
'Participants with higher scores on a standard measure of problem gambling bet even more after receiving offers, although this effect was somewhat weaker among those with the very highest scores on the problem gambling measure.'
After the experiment, the participants answered questions about their understanding of the offers.
'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,' the ESRI said.
The ESRI concluded that the findings of the study 'imply that inducements to gamble are not merely a tool for marketing, but pose a risk of financial harm, particularly among vulnerable groups'.
The findings support arguments for stricter regulation of promotional gambling offers, the ESRI said.
Anne Marie Caulfield, CEO of GRAI, said they 'add weight to the discourse around the harms of gambling inducements and I very much welcome this additional evidence base'.
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