Gambling Direct Marketing Increases Harm, Study Finds

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direct marketing

Direct marketing from betting apps increases gambling harm, a new study shows.

Australian and U.K. researchers found that this form of marketing, which includes emails, texts, phone calls, and push notifications, raises risks associated with these platforms.

The study found that people who opt out of direct marketing:

  • Placed 23% fewer bets
  • Spent 39% less money
  • Reported 67% fewer short-term gambling harms

Researchers compared these findings with a control group who continued to receive direct marketing communications, suggesting potential public health benefits from banning these tactics.

“This consistency across measures is a substantial indication that direct marketing increases the intensity of betting, spending, and harm among existing customers,” researchers wrote.

Why Gambling Direct Marketing is Risky

This form of communication can be aggressive. Direct marketing often includes bonuses and promotional offers to lure customers. Both regulated and unregulated betting apps engage in this activity.

Bonus offers do not boost your chances of winning money. One study found that just 4% of online sports bettors win money.

For sports betting platforms, direct marketing might prompt you to remember an upcoming game. It may also be personalized using artificial intelligence.

Direct Advertising Can Be Cost-Effective

This form of marketing can be less expensive than buying TV ads (the most expensive example being the Super Bowl) or stadium signage. It may also be more likely to reach you than social media advertising.

Because these communications are relatively inexpensive, betting apps can inundate you with direct marketing. In other words, fill your inbox or phone with attempts to get you to gamble.

“Wagering operators commonly justify direct marketing as ordinary competitive behaviour aimed at ‘winning customers’, but our findings instead show that direct marketing amplifies betting and harm within a customer base that operators already have,” researchers wrote.

Can You Stop Direct Marketing?

Consumer protection regulations vary by jurisdiction. In the US, you generally will not find a state-sanctioned gambling platform that gives you a clean “no marketing” choice during account creation.

You can typically opt out of calls, texts, and push notifications directly from the message, by contacting customer support, or by adjusting communication preferences in the app or your device’s settings.

You can usually opt out of marketing emails via unsubscribe.

Will the gambling app honor your requests and cease these communications? It depends on the platform. Contact your local gambling regulator with complaints. Regulated betting apps have a long history of violating marketing rules.

Why this Study is Unique

The gambling direct advertising study provides much-needed evidence of a causal role in gambling intensification and harm. If you are a user, consider blocking or opting out of these communications.

The study authors noted that past research provided correlational evidence, which may be partially explained by factors such as reverse causation and other variables. The new study addressed this gap.

“For example, gambling operators may provide direct marketing messages more frequently to people who spend more and experience more harm,” they wrote. “Moreover, people who are losing money may seek out direct marketing opportunities and be more likely to remember them when asked.”

Researchers designed the study to address those issues and explore a causal interpretation.


Image credit Wikimedia Commons.


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