A new study has revealed that the availability of cash-out options in sports betting apps significantly influences bettors to place larger and riskier bets. Conducted by a team of researchers from Monash University and the University of Warwick, the study examined how cash-out features – widely promoted as tools for bettors to “take control” of their wagers – actually alter betting behaviour.

The research, published in Psychological Science, involved two experiments with a total of 240 participants, each using a simulated betting task. The results indicated that when a cash-out option was available, participants were more likely to place larger bets. In some cases, bet sizes increased by as much as 35%.

The cash-out feature, which allows bettors to settle a wager before the outcome is determined, was originally introduced to offer more flexibility and control. However, this study suggests that its presence may encourage riskier behaviour, potentially exacerbating gambling-related harm.

The study’s authors developed a controlled task to investigate this effect, simulating a scenario where participants placed bets on the outcome of a random card draw. Some participants were given the option to cash out their bets before the outcome was revealed, while others were not. Across both experimental groups, those who had the cash-out option consistently wagered higher amounts compared to those without it.

One of the key findings of the research was that the availability of cash-out options seems to increase bettors’ perceived control over their wagers. This perceived control likely contributes to higher bet amounts, as individuals may believe they can mitigate potential losses by cashing out at an advantageous moment. However, this control is somewhat illusory, as cash-out offers are typically designed to be less than the true value of the bet, ensuring a profit margin for bookmakers.

The researchers also explored individual differences in how participants used the cash-out feature. They found that those who were more likely to cash out when the odds were against them were also the ones who tended to place larger bets initially. This suggests that the cash-out option may particularly appeal to individuals who are more risk-averse, yet paradoxically, it drives them to take on more risk.

These findings have important implications for the regulation of sports betting apps, particularly in the context of ongoing discussions about gambling-related harm. While cash-out features are marketed as empowering tools for bettors, this study indicates they may instead contribute to more dangerous betting patterns. The researchers argue that regulators should consider these potential risks when evaluating the safety of such features.