New light on gambling incentives: impactful Irish study
Ireland’s Economic and Social Research Institute (ESRI), supported by the Gambling Regulatory Authority of Ireland (GRAI), has conducted a groundbreaking study. It is based on a random online experiment involving 622 men under the age of 40, all regular punters. The aim? Observing the impact of incentives (free bets, money-back guarantees) on real gambling behaviour, highlighted by the intense atmosphere of European football matches.
Alarming results: +10% spending… and errors of judgement
Participants could place bets on Euro matches. Half of them benefited from incentives, such as free bets or refunds in the event of a loss, while the other half were left without any offers. This difference had a spectacular effect:
- Players exposed to the incentives spent more than 10% of their extra budget,
- The number of people who refrained from betting was halved.
But that’s not all. The researchers even intentionally included ‘bad options’: bets where the odds were unfavourable enough to guarantee a loss, even with the bonus. But incentivised punters were three times more likely to be tempted by these bad options.
Vulnerable groups at the centre of concerns
Another crucial point: people showing signs of problem gambling were particularly sensitive to these incentives.
As Dr Diarmaid Ó Ceallaigh of ESRI’s Behavioral Research Unit explained:
“Gambling offers are not simply marketing tools, but present a real risk of financial harm, particularly for vulnerable groups. The findings make a strong case for stricter regulation of gambling offers in Ireland, along the lines of measures already taken in other European countries, such as banning sign-up bonuses, restricting offers to at-risk individuals and capping their value.”
A notable fact: even among regular punters, the majority were unaware of the terms and conditions of free bets. More than half thought they would automatically get their stake back if they won – which is not usually the case. 87% were unaware of the amount of the free bet, and 63% did not understand what they would receive if they won.
Towards tighter regulation?
Irish officials believe that this study strengthens the case for stricter regulation. Dr Ó Ceallaigh advocates banning welcome bonuses, limiting offers to high-risk individuals and capping the value of incentives, in line with measures already put forward elsewhere in Europe.
Anne Marie Caulfield, CEO of the GRAI, agrees:
“We are committed to continuing research to understand the extent of gambling in Ireland, the causes of gambling-related harm and the impact of incentives and advertising on gambling behaviour. We actively engage with a wide range of stakeholders, including industry, charities and people with lived experience of gambling-related harm. The Gambling Regulation Act 2024 sets out obligations for licensees in relation to how incentives can be offered, including a ban on targeted incentives, and the results of this study confirm these measures.”
This vast Irish trial reveals the power of gambling incentives: they increase spending, reduce risk awareness, and lead to unwise financial choices… especially among the most vulnerable. These findings legitimise more assertive regulatory approaches, inspired by European initiatives against bonuses.