The role of bonuses in increasing/reducing spending

1. What are bonuses and inductions?

Bonuses or "inducements" are marketing incentives for bets, often including "bonus bets" or related rewards. They are widely used online, in particular to attract slots and other forms of gambling.

2. Impact of proposal design on value perception

A study among Australian players (299 people) found that almost 60% of participants underestimate the true cost of the bonus, even when the offer states "terms and conditions apply." The more detailed the conditions are, the less attractive the offer seems, but still many do not understand how much they really have to spend before you can withdraw the winnings.

3. What it means for player spending

• Miscommunication leads to players placing more bets to win back the bonus and meet the conditions.

• In the absence of transparency, they can contribute significant amounts without realizing that the bonus requires repeated wagering.

• All this increases the total volume of bets and, accordingly, losses.

4. Lack of data specifically on pokies, but general conclusions apply

Although the study covered sports betting, the main mechanism (players underestimate the actual cost, increase spending) is also true for slots. Promotional incentives and obscure terms either encourage additional pokies play or create the illusion of winning without reducing actual spending.

5. Recommendations for harm reduction

Mandatory disclosure of clear wagering conditions next to the offer (not in hidden links).

Regulation of marketing incentives so that the player understands the potential burden on the budget.

Educating players about the true value of bonuses and possible consequences.

Bottom line - key thesis

Bonuses can increase spending on slots even with an apparent win: nearly 60% of players underestimate their value, and difficult conditions lead to additional bets and increased losses - especially critical for games with a high frequency, like pokies.

Source

Hing et al. (2019): 59 per cent of Australian bets underestimated the true value of bonuses, perceptions depend on advertising format and transparency of terms and conditions.