The term risk-free has long been part of the marketing and advertising lexicon, whether betting on sports or buying a product. And in most cases the product, and certainly the wager, was not really free of risk after all.
When it comes to wagers, it means that if you lose an initial deposit of $1,000, the sportsbook will add $1,000 in promotional betting credits to your account, not write you a check for $1,000. You can see how that comes off as misleading, and in the case of someone with a propensity for problem gambling, dangerous as well.
Last month, FanDuel told the Wall Street Journal that the company would re-evaluate the risk-free pronouncements in advertising for new customers. Not long afterwards, FanDuel advertised a $1,000 No Sweat First Bet instead of $1,000 risk-free, according to Sports Handle.
“Overall, ‘risk-free’ has always been problematic language to us because it’s not truly risk-free. From a messaging perspective, it was deceptive,” said Cait Huble, director of communications for the National Council on Problem Gambling. “Shifting away from risk-free is more accurate advertising, and accurate advertising rolls into a bigger RG message.”
Still, the language is far from perfect, said problem gambling consultant Brianne Doura-Schawohl.
“It’s better, but it implies that you don’t have to worry about it, and we know that’s not the case. Some individuals need to be mindful that this is something that could have significant consequences,“ she said.
“We cannot demand or expect perfection right away,” Doura-Schawohl said. “This is an evolving industry. Let’s get some research and evaluation around this.”
For Dr. Timothy Fong, the co-director of UCLA’s Gambling Studies Program, the pivot is little more than a synonym.
“It’s still designed to get you engaged in continued play. To me, that’s the most critical thing. … To someone who has a gambling disorder, it doesn’t matter what you call it. I’d like to know how they came up with that term. The origin is always very interesting. If it came from some corporate marketing person who doesn’t understand that issue, that’s tone deaf.”
The origin may have come from a Doura-Schawohl presentation, where she discussed the notion of risk-free bets.
“FanDuel has done a tremendous job educating themselves and engaging in educational opportunities that touch on this notion that it’s dangerous to call anything a risk-free bet,” Doura-Schawohl said. “They have really done a good job about hearing from problem gambling advocates on the dangers associated with risk-free terminology.”
