MORGANTOWN — West Virginia University researchers have begun a study that aims to identify when and why online sports bettors increase wagers after losses — a pattern known as loss‑chasing — using a grant and near real‑time data from state gaming operators.
Study uses operator data to spot risky patterns
The John Chambers College of Business and Economics at WVU is leading the project with support from a nearly $300,000 award from Arnold Ventures. Investigators will analyze detailed transactional records provided under state law to detect behavioral patterns and specific triggers that precede risky betting decisions.
Brad Humphreys, an economics professor who directs the Chambers College Center for Gaming Research and Development, said the research focuses on how bettors respond after losing wagers and, particularly, after near‑misses on parlays and other multi‑leg bets.
“Some people are placing hundreds of bets on sporting events in just one month through online gaming operators,” Humphreys said. “West Virginians who gamble irresponsibly need help. Our research is going to make it easier to get those people help.”
Policy and industry implications
The study could have practical consequences for both regulators and operators. West Virginia law requires gaming companies to share timely online wagering data with WVU, giving researchers a detailed window into customers’ decision making. If investigators can reliably identify moments when a bettor is likely to chase losses, operators could intervene in real time — for example, by pausing an account or flagging the customer for outreach — to prevent further financial harm.
Humphreys said operators would be able to use the study’s findings to design safeguards, adding that such targeted measures could be more effective than broad restrictions. The research is intended to produce evidence-based recommendations that can be applied by state authorities or gaming firms.
Scope and context
West Virginia is among the states that permit online sports wagering. The university notes that 38 states allow some form of online sports betting. Two years ago, lawmakers approved the Responsible Gaming Research and Industry Development Act, a statute that obligates operators to share anonymized, timely data with researchers to support studies such as this.
- Grant amount: nearly $300,000 from Arnold Ventures
- Research focus: patterns of loss‑chasing and triggers for risky betting
- Data source: real‑time transactional records from state gaming operators
Why loss‑chasing matters
Loss‑chasing is a behavior in which players increase bet size or frequency after setbacks in an attempt to recover losses. Experts link it to greater financial harm, elevated stress, and a higher probability of developing problem gambling behaviors. By isolating the moments when bettors are most likely to act impulsively, the project aims to offer practical tools for prevention and early intervention.
Arnold Ventures funds research intended to inform policy and practice. The philanthropy has supported projects that produce empirical evidence to guide public policy; in this case, the backers expect the work to translate into actionable steps for protecting consumers as more jurisdictions permit online gaming.
How the findings could be used
If the WVU team demonstrates reliable indicators of loss‑chasing, potential applications include:
- Automated account pauses when high‑risk patterns emerge
- Targeted communications or referrals to problem‑gambling resources
- Informing regulatory standards for responsible‑gaming practices
Humphreys emphasized that the goal is to reduce harm while allowing responsible play: interventions would be aimed at bettors showing signs of distress rather than restricting the broader population.
Data and transparency
The research draws on the unique access mandated by state law, which requires operators to provide timely, detailed data to WVU for research purposes. That dataset offers a granular view of wagers, timing and outcomes — information researchers say is essential to distinguish ordinary losing streaks from patterns that indicate emerging harm.
| Item | Value |
|---|---|
| Grant | Nearly $300,000 |
| States with legal online sports betting | 38 |
| Responsible gaming law enacted | Two years ago (mandates operator data sharing) |
Researchers caution that translating statistical signals into interventions requires careful ethical and operational design to protect privacy and avoid unintended consequences. The WVU team plans to evaluate both the accuracy of predictive signals and the effectiveness of potential responses.
The study represents an effort to produce evidence that can shape how states and companies respond to the rapid growth of online wagering, seeking a balance between consumer protections and access to legal gaming options. The research is ongoing; investigators say they will share results and recommendations when they are ready.
Colton Ferris, State Correspondent
