You’re not alone if you can’t understand so-called wagering requirements for online betting.
New research in the UK asked bettors to calculate the actual cost of “bonus” offers in online gambling. Most gamblers made incorrect estimates about wagering requirements to unlock their bonus.
The topic is relevant to mitigating problem gambling.
Wagering Requirements Meaning
Online gambling platforms often provide financial inducements, such as “free” bets, deposit matches, and welcome bonuses. These incentives are frequently delivered via direct marketing, which can cause harm.
These offers typically require users to wager large sums relative to their deposit to actually claim the promotional money (i.e., make the bonus funds withdrawable).
These conditions, known as wagering or “playthrough” requirements, are outlined in promotional terms and conditions but can nonetheless be challenging to interpret.
They are not displayed as prominently as the attention-grabbing bonus deal.
UK Study Suggests ‘Worked Example’
UK researchers found that providing consumers with a “worked example” that explicitly states what’s involved could reduce the appeal of these risky promos.
Researchers ran an online experiment with 585 adults who had gambled in the past year. Each participant saw a welcome bonus.
Half of the participants saw the offer in its standard format. The other half saw it with a concise three-sentence example, clarifying what a 10x wagering requirement would mean for a £50 deposit.
The study found that over 90% of participants underestimated how much they needed to wager to unlock the bonus. Only about 5% accurately determined the true cost of the wagering requirement.
The research found that gamblers of all types, including people experiencing problem gambling, misunderstood wagering rules.
What to Do About Wagering Requirements
Regarding regulatory responses, the UK has made some progress by capping playthrough requirements at 10 times the bonus. In contrast, the US has no state-imposed hard cap on these bonus multipliers.
Some users have sued sportsbooks, such as DraftKings and Caesars, over these allegedly predatory deals.
But the cap is just one component of the problem.
The placement of a “worked example” in advertising is crucial, researchers suggested. If the operator buries it in the terms and conditions, it is unlikely to be effective.
The research suggests that the true cost involving wagering requirements should be displayed “prominently in the same print size” as headline offers.
Some European countries have banned bonuses entirely to address the public health issue more practically. In the UK, some are still trying to reform these financial inducements.
Bottom Line
There is no completely safe way to use online gambling products. The best option is to avoid them to protect your physical, emotional, and financial health.
The industry uses wagering requirements to protect its bottom line. In the process, online gambling platforms can harm users through the practice of bonusing and providing confusing terms.
It’s common to claim a bonus offer and realize you have not met the wagering requirements. Remember that this can be a tactic to push you into high-volume wagering. It could be the beginning of problem gambling.
