Millions of people will be enjoying the football at the 2024 European Championship, but one feature in popular betting apps could tempt punters into risking too much.
Scientists have found that the ability to pay out a smaller amount before the end of a match encourages gamblers to bet 35 percent more and take bigger risks with their money.
By making them feel like their bets were partially reversible, inexperienced, low-risk gamers were “pushed” into becoming more serious gamblers, they found.
The 2024 European Championship starts on Friday at 8 p.m. with Germany against Scotland at the Allianz Arena in Munich.
As fans around the world are gripped with excitement, researchers from the University of Warwick shared their findings.
Professor Elliot Ludvig said: ‘The cash-out option appears to create a perception of greater control over the bet, which in turn encourages higher risk taking.
‘Our research suggests that when gamblers find 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 gambled on uncertain outcomes of a simple card game.
Half were given the chance to ‘cash out’ before the game ended for less than their stake was worth.
The researchers found that these people gambled 35 percent more on average and were willing to bet money on bigger risks, cushioned by the thought that their bet was partially reversible.
The results suggest that the cashout option promotes larger bets by allowing gamblers to cut their losses early and avoid losing their entire stake.
Alternatively, this could help them secure a position, such as when a team they backed to win is 1-0 up at half-time but they fear they will concede goals in the second half.
Either way, the gambler settles for less than his stake is actually worth, avoiding the threat of further loss, while the bookmaker secures a guaranteed profit.
Dr. Lukasz Walasek said: “Our findings underline the importance of closely monitoring and regulating payout features in sports betting apps.
‘Furthermore, longitudinal studies are needed to assess whether frequent use of the cash-out option predicts a worsening trajectory of gambling-related harm.’
The researchers say the cashout feature has become “prominent and prevalent” in modern sports betting apps.
It plays on a natural human instinct to avoid ‘delayed outcomes’, where gamblers have to ‘wait in uncertainty’. People prefer gambles that are more likely to resolve uncertainty, they said.
Cashout is a heavily marketed feature. According to bookmaker Bet 365’s website: ‘Cash-out gives you more control over your bets.’
Charity GamebleAware said the research was proof that gambling can be addictive, and called for stronger health warnings in advertisements.
CEO Zoë Osmond said: ‘The euro 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 on damage.
‘Gambling harm is a serious public health problem that can affect anyone, and all forms of gambling carry risks.
“This research highlights the reality that the ability to cash out can lead people to place larger bets, which in turn can lead to an increased risk of experiencing gambling harm.”
Last year, Premier League clubs collectively agreed to ban betting sponsorship on the front of their shirts on matchdays.
The gambling sponsorship for clubs currently playing in the Premier League had an estimated value of £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.