The gambler’s fallacy, the belief that you can turn your gambling fortune around, even if losses are mounting, is a unique psychological phenomenon.
West Virgnia Takes a Closer Look at the Gambler’s Fallacy, Confident It Can Lead Understanding
While casual onlookers may play it down to gullibility, professors at West Virginia University’s John Chambers College of Business and Economics are looking into the behavioral triggers of this behavior, using real-time data from state gaming operators, and they may be onto something.
Bettors tend to chase losses, professors have noted, when losing, in the hopes that they can recoup a loss and turn their luck around – this is rarely the case, and the financial consequences of such behavior could be serious.
Chambers College economics professor Brad Humphreys believes that understanding this behavior could empower operators to intervene sooner and ensure that bettors are protected.
Specifically, he focuses on sports betting and parlay betting, with near-misses leading to compulsive behavior that could quickly have serious financial and personal consequences:
“If our research is right, that a near-miss parlay bet causes people to loss-chase and behave irresponsibly, operators can identify those people at the time they experience the loss and take measures like pausing accounts to prevent those people from doing financial harm to themselves,” Humphreys said.
These findings come in the broader context of what West Virginians’ gambling habits are, with nearly 90% of all bets placed on sporting events in the state being parlay bets.
The goal of the research is simple enough: protect West Virginian gamblers and their families from the associated risks with excessive gambling. Humphreys notes that there are already people who are placing hundreds of bets on sporting events in just a single month, and that merits attention.
People who gamble irresponsibly need help, the professor argues, adding that it is through research that people can receive the help they need. Further research is backed by Arnold Ventures’ $300,000 grant, awarded to West Virginia University.
Sports Betting Parlays Among the Triggers – But Solutions Are Underway
“As more states allow online gaming, the need for evidence-based research is growing. This grant from Arnold Ventures positions Dr. Humphreys and the Center for Gaming Research and Development to generate insights that help policymakers, industry stakeholders, and public health professionals make informed, data-driven decisions.
We greatly appreciate the Legislature’s recognition of our expertise in this area, and this grant is a testament to their vision,” said Milan Puskar Dean Joshua Hall, thanking Arnold Ventures for the contribution.
West Virginia University is looking to become a leader in advancing this type of research, looking to leverage it on an international scale and help advance a deeper understanding of how to best protect consumers.