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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.

Alex: Alex explores the world of casinos through informative and entertaining articles. Nurtured by a deep passion for art and television, each text shows a meticulous attention to detail and a balance between rigor and creativity. Whether demystifying gambling strategies or recounting the fascinating history of casinos, his aim is to inform while captivating his readers.
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