At Euro 2024, millions of people will be playing with the ball, but a feature of popular betting apps may prompt bettors to risk too much.
Scientists found that the option to “cash out” a smaller amount before the end of the match encouraged players to bet 35 percent more and take greater risks with their money.
They found that by giving them the feeling that their bets were partially reversible, inexperienced and low-risk gamblers were “nudged” to become more serious gamblers.
Euro 2024 begins with Germany-Scotland at the Allianz Arena in Munich on Friday at 8:00 p.m.
While fans around the world are overcome with excitement, researchers from the University of Warwick shared their findings.
Professor Elliot Ludvig said: “The withdrawal option appears to create a perception of greater control over gambling, which in turn encourages greater risk-taking.”
“Our research suggests that when gamblers perceive that they can partially reverse their bets, they are more willing to bet larger amounts.”
The researchers conducted a test with 52 participants in which they placed bets on uncertain outcomes of a simple card game.
Half were offered the opportunity to “cash out” before the game ended for less than their bet was worth.
The researchers found that these people bet 35 percent more on average and were willing to invest money in higher risks, protected by the idea that their bet was partially reversible.
The results suggest that the cash-out option promotes larger bets by allowing bettors to reduce their losses early and avoid losing their entire bet.
Alternatively, it allows them to secure a position, such as when a team they have backed to win is up 1-0 at half-time but fear conceding goals in the second half.
Either way, the player settles for less than their bet is actually worth, avoiding the threat of further losses while ensuring a guaranteed profit for the bookmaker.
Dr Lukasz Walasek said: “Our findings underline the importance of closely monitoring and regulating cash-out features in sports betting apps.
“Further longitudinal studies are needed to evaluate whether frequent use of the cash-out option predicts a worsening trajectory of gambling-related harm.”
The researchers said the cash-out feature has become “prominent and prevalent” in modern sports betting apps.
This plays into a natural human instinct to avoid “delayed outcomes,” where players must “wait in uncertainty.” People tend to prefer bets that resolve uncertainty sooner, they said.
Cash withdrawal is a highly marketed feature. According to the Bet 365 bookmaker’s website: “Withdrawal gives you more control over your bets.”
Charity GamebleAware said the study was evidence that gaming can be addictive and called for stricter health warnings in ads.
Chief executive Zoë Osmond said: “Euros will lead to more people gambling and as a result we are calling for stronger health warnings on gambling advertising, such as ‘Gambling can be addictive’, to ensure people are aware of the risks of damage.
‘Gaming harm is a serious public health issue that can affect anyone and all forms of gambling carry risks.
“This research highlights the reality that having the option to withdraw money can lead people to make larger bets, which in turn can lead to a higher risk of gambling harm.”
Last year, Premier League clubs collectively agreed to ban gambling sponsorship on the front of their shirts on match days.
Gambling sponsorships for clubs currently in the Premier League were worth an estimated £60 million per year.
Anyone concerned about how gambling makes them feel can search GambleAware or contact the National Gambling Helpline on 0808 8020 133.
