West Virginia University to Study Loss-Chasing Sports Bets

The University of West Virginia is hoping to help fight one of sports betting’s riskiest habits.

The school’s John Chambers College of Business and Economics announced a new study targeting loss-chasing behavior among online sports bettors. It hopes to shine a light on the issue and find ways to curb this form of problem gambling.

West Virginia is one of the 38 states that currently offer online sports betting, launching the market in December 2018.

What is Loss-Chasing?

The term “loss-chasing” refers to the act of bettors placing increasingly risky wagers to make up for previous losses. For example, a player who loses four $25 wagers in a row and places a fifth bet with a payout of >$100. The goal would be to at least win their money back, with some players also targeting a profit for the betting run.

This has been a problem in Las Vegas for decades, but it has exploded as online sports betting expands across the US. 

Bettors not only have easier access to place wagers, but also a far larger selection of markets to choose from. Prop bets give bettors a chance to wager dozens of times on a single event, which can lead to loss-chasing spiraling out of control.

WVU Received Grant for Study

Arnold Ventures is funding the new study, which provided $300,000 to the effort. 

Department Dean Joshua Hall thanked the group for the donation and said it signals a growing need for the research. 

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.

States Searching for Solutions

Several states have considered changes to help address loss-chasing. While the most significant proposals have failed because of financial concerns, several markets are continuing to push for a solution.

Colorado recently passed new deposit restrictions, which went into effect earlier this month. It limits bettors to six deposits over a 24-hour period. It also officially banned credit card deposits, which can be a dangerous tool for bettors chasing losses.

Lawmakers in Massachusetts are considering S. 302, which would require affordability checks for bettors. This would allow sportsbooks to identify signs of problem gambling earlier, saving bettors from spending beyond their means.

Ohio’s proposed Save Ohio Sports Act would represent the most drastic step to stop loss-chasing if passed. It would set hard caps on single-wager amounts and frequency, forcing struggling bettors to stop, cool off, and realize the impact of their losses.