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West Virginia University researchers are studying whether near-miss parlay bets can trigger loss-chasing behavior among bettors in the state, using real-time data from West Virginia gaming operators.
The work, led by professors in WVU’s John Chambers College of Business and Economics, focuses on gambler’s fallacy in sports betting and parlay wagering. Arnold Ventures has awarded WVU a $300,000 grant to support the research.
Research focuses on parlays and real-time betting behavior
According to the source report, nearly 90% of all bets placed on sporting events in West Virginia are parlay bets. The researchers are examining whether a near miss on those wagers can push some bettors toward compulsive behavior.
Brad Humphreys said the goal is to identify behavioral triggers behind gambler’s fallacy using operator data as events happen. He said some people are placing hundreds of sports bets in a single month.
Humphreys said operators may eventually be able to intervene sooner if the research confirms that near-miss losses are linked to irresponsible betting behavior.
> “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.
Grant support and possible policy relevance
Joshua Hall said the Arnold Ventures funding will help the Center for Gaming Research and Development produce evidence that can be used by policymakers, industry stakeholders and public health professionals.
> “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,” Hall said.
The source report says WVU wants to become a leader in this area of research and help advance consumer protection efforts more broadly.
The report did not identify which operators are supplying the real-time data, the study timeline, or what specific standards would be used before an account intervention such as a pause.
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Source: As reported by gamblingnews.com.
