Does new cash-out option in sports betting increase risk for problem gamblers?
The increasingly popular cash-out feature in online sports betting is a game-changer, but instead of just giving gamblers more control over their bets, it may increase the risk of problem gamblers losing control over their wagers. What regulators and policymakers can do to protect gambling consumers from potential harm caused by this new type of betting are explored in an article published in Gaming Law Review.
The article entitled "'Cashing Out' in Sports Betting: Implications for Problem Gambling and Regulation" is coauthored by Hibai Lopez-Gonzalez and Mark Griffiths, Deusto University, Spain and Nottingham Trent University, U.K. The authors examine the rising popularity of cash-out features in online sports betting platforms and how cashing out is transforming sports betting from a discontinuous to a continuous form of gambling. It allows bettors to withdraw their bets while an event, such as horseracing or a soccer match, is still underway to ensure at least some gains or minimize losses.
"Keeping up with new products being offered in the marketplace remains a challenge for regulators and those concerned with problem gambling," says Sue Schneider, Editor-in-Chief of Gaming Law Review. "This primer not only explains this new concept, but also takes a look at whether it offers an additional addiction risk for the gambler. It offers a commentary on how best to view the 'cash-out' option and evaluate the consequences of its entry into the market."