ESRI Study Says Free Bets Increase Risk of Harmful Gambling Behavior

According to a new study by the Economic and Social Research Institute (ESRI), offering free bets encourages gamblers to spend more money, suffer greater losses, and make poor decisions.

ESRI Study Finds Correlation Between Free Bets and Harmful Gambling Behavior

Funded by the Gambling Regulatory Authority of Ireland, which was established earlier this year, the ESRI conducted a controlled experiment to assess whether promotional offers from gambling companies influence betting behaviour. The study focused on a group of 622 men under the age of 40, just before the Euro 2024 soccer tournament.

Participants were given money to place up to six realistic bets on tournament matches. Half were randomly assigned to receive incentives such as free bets and money-back guarantees, while the other half received no promotional offers.

According to the ESRI, those exposed to these inducements spent 10% more on betting and were significantly less likely to abstain, with the number of non-bettors nearly cut in half. Some of the bets in the experiment were deliberately structured as “bad bets,” offering poor odds compared to standard market rates. Participants in the group that received promotions were three times more likely to place money on these unfavourable bets.

The researchers noted that while previous studies have linked inducements to riskier betting behaviour, this was the first to demonstrate an increase in the uptake of poor-value bets. Participants were also questioned about their understanding of these offers. Despite most being regular bettors, many were unaware of the conditions attached to free bets. In particular, a large number did not realise that, as is standard industry practice, the stake is not returned when a free bet is used.

Gambling Regulatory Authority of Ireland Responds to the Results

Anne Marie Caulfield, chief executive of the Gambling Regulatory Authority of Ireland, explained that the general public is largely unaware of the risks associated with seemingly harmless offers like free bets. Caulfield emphasised the responsibility to prevent gambling operators from promoting excessive or compulsive gambling, and to safeguard vulnerable groups in society, including children, young people, and those at higher risk of gambling-related harm.

Caulfield also noted that the Gambling Regulation Act 2024 outlines clear obligations for licensees regarding how inducements can be offered, including a prohibition on targeted promotions. The study’s findings, she said, support the necessity of these measures.

Speaking of Caulfield, she recently signed an agreement with the Gibraltar Regulatory Authority, marking the start of a collaboration between the two organizations. The agreement establishes a partnership between the two authorities to address a range of issues within the gambling industry.