Irish gambling regulator’s research raises concerns over bonuses and free bets
The GRAI found that incentives can increase gambling spend by 11 per cent.
Ireland.- The new Gambling Regulatory Authority of Ireland has published the results of a study on the impact of incentives like bonuses and free bets on gambling expenditure. Its investigation into player behaviour found that such promotions could increase consumers spending on gambling by an average of 11 per cent.
The study surveyed 622 men aged under 40 in the run up to the UEFA Euro 2024 football tournament last year. Participants were presented with different betting scenarios, including some that featured inducements such as money-back guarantees and free bets. They were asked which offers they would take up in realistic betting conditions.
The results suggest that players offered incentives were prepared to spend more, even when the odds were worse. Some 27.2 per cent per cent chose a “bad bet” when a free bet was offered, compared to 7.9 per cent without an incentive. Meanwhile, 19 per cent took an inferior bet with a money-back offer, compared to 4.9 per cent, while only 4.9 per cent did so when no promotion was offered
When odds were the same, players bet four times more money when a bonus was offered. Free bets were found to have the biggest impact, leading to an average spending on bad bets of over €2. That compared to slightly under €1.50 with money-back offers.
The GRAI-commissioned study also looked into whether promotional offers could worsen gambling harms. It found that players identified as at-risk according to the Problem Gambling Severity Index (PGSI) were substantially more likely to spend on bets with bonuses. In the “Problem Gambling” and “Moderate Evidence” categories, spending on promotional bets more than doubled compared to those without incentives
In lower-risk categories, promotional wagers also led to a higher average spend, particularly on bets with inferior odds.
Researchers called for strict regulatory measures to limit gambling incentives. It suggested taking the example of Spain, which banned sign-up offers and limited bonuses to €100.
The report concluded: “Incentives to gamble function differently than promotions in other sectors. They not only encourage brand selection but actively influence consumer behavior – often detrimentally.”
After inviting expressions of interest back in March, the GRAI intends to open a window for Irish gambling licence applications this year. The aim is for the new licensing regime to start in 2026.
Last month, the regulator responded to operator concerns over the proposed framework for licences. Operators raised questions about the proposed application fee structure, which was described as being based on operator ‘turnover’.
The GRAI has clarified that it will consider a tiered licensing fee model based on gross gambling yield (GGY) or a hybrid of turnover (gross profit) and GGY. It also said it would now consider a premises fee related to the scale of operations, possibly by assessing the number of gaming machines on site.
