Euro 2024 will see millions having a flutter on the football, but one feature on popular betting apps may lure punters into risking too much.
Scientists found the option to ‘cash out’ for a smaller amount before the end of a match encourages gamblers to bet 35 per cent more and take bigger risks with their money.
By giving them a feeling that their bets were partially reversible, inexperienced and low-risk gamers were ‘nudged’ towards becoming more serious gamblers, they discovered.
Euro 2024 kicks off with Germany v Scotland at the Allianz Arena in Munich at 8pm on Friday.
As fans worldwide are gripped by excitement, researchers from the University of Warwick shared their findings.
Professor Elliot Ludvig said: ‘The cash-out option seems to create a perception of increased control over the bet, which in turn encourages higher risk-taking.
‘Our research suggests that when bettors perceive they can partially reverse their bets, they are more willing to stake larger amounts.’
The researchers ran a trial with 52 participants in which they placed bets on uncertain outcomes of a simple card game.
Half were offered the chance to ‘cash out’ before the game finished for less than their bet was worth.
The researchers found those people wagered 35 per cent more on average and were willing to put money on bigger risks, cushioned by the thought that their bet was partially reversible.
The results suggest the cash-out option promotes larger bets by allowing bettors to cut their losses early and avoid losing their entire stake.
Alternatively, it allows them to secure a position, such as when a team they’ve backed to win is up 1-0 at half time but they fear they might concede goals in the second half.
Either way, the gambler settles for less than their bet is actually worth, avoiding the threat of further loss, while securing a guaranteed profit for the bookmaker.
Dr Lukasz Walasek said: ‘Our findings underscore the importance of closely monitoring and regulating cash-out features in sports-betting apps.
‘Further, longitudinal studies are needed to assess 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.
It plays into a natural human instinct to avoid ‘delayed outcomes’, where gamblers must ‘wait in uncertainty’. People tend to prefer gambles that resolve uncertainty earlier, they said.
Cash-out is a heavily marketed feature. According to the website of bookmaker Bet 365: ‘Cash-out gives you more control over your bets.’
Charity GamebleAware said the study was evidence that gambling can be addictive, and called for stronger health warnings on adverts.
CEO Zoë Osmond said: ‘The Euros will lead to more people gambling, and as a result we’re calling for stronger health warnings on gambling advertising, such as ‘Gambling can be addictive’, to ensure people are aware of the risks of harm.
‘Gambling harm is a serious public health issue which can affect anyone and all forms of gambling carry risk.
‘This research underlines the reality that having the option to cash out can lead to people placing bigger bets, which in turn can lead to an increased risk of them experiencing gambling harm.’
Last year, Premier League clubs collectively agreed to ban gambling sponsorship from the front of their shirts on matchdays.
The gambling sponsorships for clubs currently in the Premier League had an estimated value of £60million per year.
Anyone worried about how gambling makes them feel can search GambleAware or contact the National Gambling Helpline on 0808 8020 133.
Source: Mail Online
