WVU research aims to curb risky loss-chasing in online betting

Because gamblers often up the ante rather than cut their losses when their online bets and parlays are a bust, researchers at the West Virginia University John Chambers College of Business and Economics are studying loss-chasing behavior in West Virginia to help protect Mountain State gamblers and their families from the associated risks.

"Some people are placing hundreds of bets on sporting events in just one month through online gaming operators," Brad Humphreys, Chambers College economics professor, said. "West Virginians who gamble irresponsibly need help. Our research is going to make it easier to get those people help."

Arnold Ventures recently awarded WVU a nearly $300,000 grant for research that analyzes real-time data collected from state gaming operators to identify trends in risky betting and the triggers that cause loss-chasing. Experts refer to it as loss-chasing ­when a person places bets to make up for a previous lost wager.

West Virginia is one of 38 states where online sports betting is legal. Two years ago, state lawmakers enacted the Responsible Gaming Research and Industry Development Act, which requires operators to share timely online gaming data with WVU.

That data offers a detailed picture of gamblers' decision-making for Humphreys, who serves as director of the Chambers College Center for Gaming Research and Development.

"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 pause accounts to prevent those people from doing financial harm to themselves," Humphreys said. "That's the definition of making life better for West Virginians."

Arnold Ventures is a philanthropy that supports projects rooted in evidence-based information that can lead to policy changes.

"As more states allow online gaming, the need for evidence-based research is growing," Milan Puskar Dean Joshua Hall said. "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."

In West Virginia, nearly 90% of bets on sporting events are parlay bets. Parlay bets - wagers on two or more outcomes, called "legs" - only pay off when all predictions are correct. For example, a parlay bet that three NFL teams will win their games is a three-leg parlay. There is no payout unless all three teams win.

West Virginia is also among seven states where iGaming is legal. Gamblers can access a variety of internet-based games and betting opportunities. That may include casino-style games such as slots and poker.

"Most bets on sporting events or in iGaming have negative expected values," Humphreys said. "The shocking thing is the amount of money that's wagered on iGaming is an order of magnitude larger than the amount of money wagered on sports betting."

Humphreys has conducted research focused on gambling for more than 20 years. Georgia's Legislature, the National Council of Gambling Regulators, and lottery commissioners in Colorado are among the policymakers who have recently called upon Humphreys' expertise.

"That shows we have something starting at WVU that is unique," he said. "The idea is to become an international leader in this type of research."

Using information observed before and after bettors experience a triggering loss, researchers can determine the riskiness of the wagers. The goal for researchers like Humphreys is to promote responsible gaming and consumer protection in gaming markets.

The Arnold Ventures grant was awarded through the WVU Foundation, the nonprofit organization that receives and administers private donations on behalf of the University.

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sw/8/11/26

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