Free bets encourage risky gambling in problem gamblers: Study
Gambling inducements like free bets and moneyback guarantees significantly encourage people to place more wagers, particularly those at risk of gambling harm, according to new research from Ireland’s Economic and Social Research Institute (ESRI). Commissioned by the Gambling Regulatory Authority of Ireland (GRAI) and the Department of Justice, Home Affairs and Migration, the ESRI study found that participants exposed to inducements spent over 10 percent more than those who were not.
People encouraged to bet irrationally
The study notes that even bets with poor odds—designed to be objectively “bad”—were still placed at three times the rate among those shown promotional offers. The controlled experiment involved 622 men under 40 who were given money to place up to six realistic bets on the Euro 2024 football tournament. Half were randomly exposed to inducements such as free bets or moneyback guarantees. These participants not only spent more but were nearly 50 percent less likely to opt out of betting altogether. The results suggest that inducements don’t just push people to bet, they push them to bet irrationally. It also found that vulnerable individuals, especially those at a higher risk of problem gambling, were disproportionately influenced by these offers.
The study comes just ahead of the implementation of the Gambling Regulation Act 2024, which will outlaw targeted inducements to gamble. Once in effect, licensed operators will no longer be allowed to offer personalised free bets or promotions aimed at specific groups, such as young people or individuals already showing signs of gambling harm.
Reactions from authorities
Paul Quinn, Chairperson of the GRAI, said, “This study clearly indicates the damaging effect of certain practices around inducements. It underlines the importance of the provisions of the Gambling Regulation Act in limiting a person’s exposure to inducements to gamble.”
Anne Marie Caulfield, CEO of the GRAI, added, “It is our responsibility to ensure that gambling operators do not encourage excessive or compulsive gambling behaviour, and that we protect vulnerable people in our society, such as children and young people and those more likely to experience gambling harm.“
Diarmaid Ó Ceallaigh, Postdoctoral Research Fellow at the ESRI’s Behavioural Research Unit, echoed the regulatory concerns: “Our findings imply that gambling offers aren’t merely marketing tools, but pose a real risk of financial harm, particularly among vulnerable groups.”
Industry voices and call for balance
Commenting on the findings, safer gambling analyst Rasmus Haarala told SiGMA News that while the study reinforces long-standing concerns, its conclusions aren’t necessarily new for the industry. He said, “About that study, I don’t think it’s anything groundbreaking really and some regulators have taken measures for years already not allowing bonuses or restricting them a lot.”
He also emphasised the need for moderation rather than an outright ban:
“My personal opinion is that there should just be a balance where bonuses are allowed but as with gambling in general it has to be offered responsibly.”
-Safer gambling analyst Rasmus Haarala
The often misunderstood the conditions of the offers. Many, including regular bettors, were unaware that restrictions apply to free bets or that they wouldn’t receive their stake back if they won using a free bet. This gap in knowledge, according to the GRAI, reinforces the need for both tighter restrictions and better public education.
Ireland now joins a growing list of European nations—including the Netherlands, Sweden and the UK—that have moved to regulate or ban gambling inducements such as sign-up bonuses and risk-free first bets. With the Gambling Regulation Act due to be enforced in the coming months, the spotlight is now on operators to adapt their marketing strategies—and for the public to better understand the risks behind the “free” bets they’re being offered.
