Bonus bets and cashback offers are strategic inducements. These offers are luring Australians into gambling problems. An anti-gambling lobby has warned as it called on the government to outlaw the practice.
The Alliance for Gambling Reform blames weak advertising and consumer protection laws. They claim these laws allow companies to design promotions that make customers believe they are placing safer bets. They argue that this misleading perception can lead to more frequent and risky betting behavior. This design also makes customers think that a win is more likely.
The alliance released a paper that warns about supposed risk-free bets. These bets offer a refund under certain conditions and are a highly enticing inducement. These are cynically targeting people with gambling problems through tailored, personalized marketing.
The paper said the rewards of bonus bets and cashback wagers are usually only redeemable in a way that encourages more betting. These rewards are subject to various terms and conditions. These terms and conditions tend to be difficult for the average consumer to find and understand.
The alliance urges the government to follow through on its promises. They want the government to impose limits on advertising and the promotion of sports betting. This comes with pressure on Labor to finally act on recommendations of a year-old parliamentary report.
The paper said online wagering companies and conventional casinos often offer inducements. These include refund or cashback offers, sign-up offers, more attractive odds or bonuses, and paying out winnings on losing bets. Frequently, rewards must be redeemed in a form that encourages betting and aim to trigger specific consumer responses.
Contrary to the marketing messages and gamblers’ interpretation that inducements offer a prudent way to bet, evidence suggests otherwise. Uptake of inducement offers is actually associated with more harmful betting behaviors. These harmful behaviors include intensified purchasing of the wagering product, placing riskier bets, chasing losses, and underestimating gambling problems.
