Direct and affiliate wagering marketing and gambling-related harm

About the study

The study was commissioned by Gambling Research Australia and partially funded by the Responsible Gambling Fund. It examined the impact of wagering direct and affiliate marketing on gambling behaviour and harm. 

Methodology

The study used a mix of research methods, including:

• A review of existing research on wagering direct and affiliate marketing and an analysis of how this is regulated in Australia. 
• Analysis of the websites and Twitter/X posts of wagering operators and wagering affiliate marketers.
• Interviews with stakeholders from wagering operators, wagering affiliates, gambling regulators and legal advisors, and gambling support providers. 
• Ecological momentary assessments of people who bet online on sport and/or racing at-least fortnightly.
• An experimental study looking at participants who chose to opt out of receiving direct messages from wagering operators a two-week period. 

Key findings

Wagering direct marketing

• The study provides the first real-world, experimental evidence of a causal relationship between exposure to wagering direct marketing and increased betting, betting expenditure and betting-related harm.
• Participants who opted-out of receiving direct messages placed fewer bets, spent less on betting, and reported fewer short-term harms from their betting, compared to those who did not opt-out. For each additional direct message from wagering operators, there were significant increases in the number of bets placed, betting expenditure, and betting-related harm.
• The study concludes that exposure to wagering direct messages, and the inducements they promote, directly increases betting, betting expenditure and betting-related harm.

Wagering affiliate marketing

• The study found that numerous features of affiliate marketing increase the risk of gambling harm.
• Affiliate marketing is incentivised to recruit new customers and maximise the financial losses of existing customers. Individuals with moderate or severe gambling problems may be targeted and links with wagering operators are often undisclosed.
• Affiliate marketing was also found to encourage erroneous cognitions and was reported by bettors to be particularly influential.
• The study also found that affiliate marketing occurs in a regulatory environment with limited capacity to prevent harmful practices.

Suggested citation

Hing, N., Rockloff, M., Browne, M., Russell, A. M. T., Rawat, V., Thorne, H., Lole, L., Sproston, K., Hodge, N., Sadler, K., & Sellers, L. (2024). Direct and affiliate wagering marketing and gambling-related harm. Sydney: Gambling Research Australia.