New report casts doubt on industry-determined deposit limit options

Deposit limits are more effective when players have the freedom to choose their own spending levels, according to a new research study funded by GambleAware.

The report, carried out by independent research body The Behavioural Insights Team (BIT), found that by removing predetermined, industry-set levels for deposit limits, players were found to reduce the limit amount by up to 46% when allowed to choose a figure for themselves.

Researchers looked at whether the current design of deposit limits influences gambling behaviour based on the behavioural science principle of ‘anchoring’, which claims individual choices can be over-reliant on pre-existing information.

During a trial between March and April 2020, the research team invited 45,000 existing bet365 customers to set deposit limits, with 4% (1,731) of those invited doing so. Researchers then spent a month observing the behaviour of players.

Participants were randomly divided into one of three trial groups with each group being presented with one of three versions of a deposit limit tool.

Group one, dubbed the control group, used the current deposit limit tools utilised by operators, while group two featured a dropdown menu which displayed low-value deposit suggestions, with an upper limit of £250 and a text box for customers to freely type a higher amount.

The final study group were provided with a text box to freely type their desired deposit limit with no recommended amounts. Researchers found that customers exposed to the industry-standard deposit limit dropdown options deposited more money into their accounts over 30 days.

Researchers found the absence of high predisposed deposit limit options almost halved the average daily deposit limit that players set for themselves.

Of the two non-industry set options, researchers found that deposit limits were 46% lower with just the free text box option, and 45% lower when presented with lower deposit limit figures.

“This report is the culmination of a huge amount of detailed work by the team at BIT,” Behavioural Insights Team principal advisor Rosanna Barry said.

“It shows how seemingly superficial changes to the way that gambling sites offer deposit tools, if implemented across the industry and for all customers, will deliver large benefits to individuals who gamble and society as a whole, without constraining customer choice,” she added.

Publication of the report comes at a crucial stage for the industry, after the UK Government’s recent call for evidence for its review of the 2005 Gambling Act included requests for information on deposit limits.

The call for evidence asks if these limits should be set on a universal basis, or targeted at individuals based on affordability or other considerations, something which is touched upon within the BIT report.

Gambling Commission executive director of research and policy Tim Miller welcomed the study’s findings as providing crucial insight.

“This is an important study that uses experiences from real consumers to find what actually works to reduce the harms that can come from gambling,” Miller said.

“Importantly, it provides practical options for how gambling operators can strengthen the tools they provide to protect consumers from harm.”