New research reveals that promotional betting offers—like free bets and money-back guarantees—can significantly increase gambling spend, especially among vulnerable groups. If you’re wondering how these incentives shape player behavior and why experts are calling for tighter regulation, read on.
The Power of Gambling Incentives: What the Study Found
A recent study by the Economic and Social Research Institute (ESRI) in Ireland has shed light on how promotional offers in the gambling industry can lead to increased and riskier betting.
Key Details:
- Participants: 622 men under the age of 40
- Test: Each placed up to six realistic sports bets
Groups:
- One group received no betting offers
- The other received offers like:
- “Bet €10, get a free bet”
- “Money back if you lose”
The Result?
Those exposed to promotional offers:
- Spent 10% more on bets
- Were less likely to skip placing a bet
- Were three times more likely to choose low-return “bad bets”
This clearly shows that these marketing tactics don’t just attract attention—they change behavior
Riskier Bets Among At-Risk Gamblers
The study also found that:
- Individuals at risk of problem gambling were far more likely to respond to promotions
- Moderate-risk gamblers showed the strongest increase in spending
- High-risk individuals showed a slightly smaller reaction, likely due to already high engagement levels
These findings highlight that gambling promotions may worsen financial harm among those already vulnerable.
Misunderstandings and Misinformation Add to the Risk
Many participants misunderstood how betting promotions actually work:
- Some believed they’d get their original stake back after using a free bet—a common misconception
- Even experienced bettors struggled with the terms and conditions
This confusion makes users more susceptible to spending more and underestimating risks.
Experts Call for Stronger Regulations
Based on the findings, researchers recommend:
- Banning sign-up bonuses
- Capping promotional values
- Restricting inducements for at-risk individuals
Countries like Spain and Sweden have already implemented similar measures. Anne Marie Caulfield, CEO of Ireland’s Gambling Regulatory Authority, affirmed that the study adds critical insights to the conversation around gambling harm:
“These findings strengthen the case for stricter controls on betting promotions.”
Why It Matters
Gambling incentives might seem like harmless perks—but research shows they can lead to higher spending, riskier bets, and greater harm, especially for vulnerable individuals. As the iGaming industry continues to grow, it’s essential to prioritize responsible gambling practices and clear, transparent marketing.