Topic: Loss Aversion: A Critical Factor for Responsible Gambling. (Read 669 times)

No matter how disciplined you are, if you are engaging yourself in negative EV (expected value) games, you will lose it all eventually. You being more disciplined only delays the process slightly. Discipline only gives results when combined with profitable (positive EV) endeavors; otherwise, you will get delusional and slowly spiral into a never-ending dark pit of loss, which eventually triggers guilt, stress, and isolation. 


You are right but only few human endeavors are there which do not have money as a focal point. Every thing which offers a shortcut to fortune (no matter how risky/illegal) will always be more appealing and gambling is providing similar path to riches.

 
That saying has some merit but only problem is no matter how great philosophical value a saying carries, it will only add to loss if you are engaging yourself in negative EV endeavors.
Apply that to positive EV endeavors and you will see results for sure.


 
You need to protect capital in any financial pursuit, but you will surely try failing every time only on gambling 

And if you have gambled in past you know very well this inevitable (lose everything chasing loses). Gambling must be considered a fun activity rather then a shortcut to financial freedom.

I can't resist the temptation of bolding out the words in your post. Thanks a lot! It means a lot to me, especially when it comes from a reputed member like you.
You are right on the point about casinos exploiting psychological tendencies to remain in profits, but at the same time, IMO, individuals also do not need to be just mindless moneybags for casinos.

Good perspective on gambling. If you have that 'pay to be able to gamble' approach in back of your mind, you know that you are just paying for fun and thrill not make substantial financial gains. Well said!

Just like drugs .

Nice advice. It would be better if you gambled with friends. Not only would it be more fun and a more social experience, but it would also help you to remain in control as individuals behave more responsibly in groups.

Thanks for finding it worthy of your focus and appreciation. I am much obliged.

Indeed it is. What is more interesting to me is that loss aversion also remains relevant when we are winning. We tend to book wins prematurely. Like cashing out winning bets early, taking insurance in poker, taking profits early in trading, etc. Casinos know this and exploit gamblers both ways.

 

Wow, this is very interesting in the article you posted :

 "But did you know that we feel the pain from losses about twice as much as we feel the joy of equivalent gains?

Loss Aversion

We are roughly 2.5 times more sensitive to losses than we are to gains of similar size. A message framed as a potential loss might therefore be more persuasive.

Think about it. The emotion you feel when you lose a $50 bet is a lot stronger than the joy of finding $50."

I never would have thought of this. And the fact that the emotion of losing a bet of equal value is much stronger than the joy of winning it to me is just so completely wild! That just goes to show you how much emotion comes into play in our decision making & probably why its so devastating when people lose so much.

Well the feeling of losses cannot be underestimated and emphasized because it's a factor that can't be rooted out of gambling so whearas in cause of gambling you ought to win and lose as well but necessarily it depends on how you position yourself in it.cayse if this feelings of losses can be handled I don't think there would be results of addiction,this is why it's best to take up some break in gambling.

True, anyone has to pay to be able to gamble, meaning this is a game that is not free while on the other hand winning is nothing more than a chance and there is absolutely no guarantee to always be able to win every time you play, so I agree with you that in gambling we must prioritize money management by implementing various plans that lead to prevention.

What you said is really based on a fact considering how difficult it is to stay okay when someone is already trapped in a high loss and that is what makes gamblers always take various aggressive actions because of the desire to return the amount of defeat they have experienced before and that is also the reason why gambling must be done with great care.

This was a very informative post especially for those who may care to be concerned with it, because I have seen that the casino is in for a long term business as people just keep falling for that psychology even after all the time they have spent gambling and loosing money over and over again and not recognizing they have gradually become addicted, but for me this feels like an awareness call and if only they will understand it in that manner probably they will gamble better.

To gamble, you need capital so protecting the raw material (the capital) is the most important aspect of gambling. So don't be surprised when people pay more attention at preventing losses than they do to winning. The only time it becomes a problem is when the gambler chase losses which is continuing to play with increased capital in order to recover losses. This does not always end up well because at that point, one would have suspended the ability for critical thinking and wise decision, so making informed selection and decision becomes impossible consequently, the losses will not stop until the fortune have been lost. 

Gambling has a spirit behind it, and that spirit is what drives most gamblers who are not able to subdue and conquer it.
I am a gambler myself and understand perfectly what it like to chase after loses, a couple of times I've gambled and lost my money, a sudden feeling comes upon me, creating in me a very strong desire to deposit more money and continue gambling, this strong desire makes one believe that they are very close to winning the jackpot, and just then, saying like "quitters never win and winners never quit" floods the mind of the gambler, and if the gambler is not able to over this temptation, he or she will likely find him or her self depositing more money to chase after that which is lost...

It rakes good self discipline and strong mental strength and will to not always fall for such to be honest wit you, so most of the time, I really do not blame gambler who end up in such situations.

Money would really be that the main reason on why gambling would really be that still having that kind of relevance and demand due to that kind of aspect on which this is where people would really be that always loving. It will really be always like this and if there were no demand then we would really be seeing that gambling industry would really be just that keeps on booming or increasing in terms of revenue and this is really that something which is really that obvious or really that being written on paper or simply could be seen on stats. Responsible gambling is actually really just that basing up on a certain individual into this kind of aspect on which it will really be always depending on how they would really be treating up because there's no way that you could be able to think up well on what it is and on how you should really be treating it up.
People do messed up their lives due to that wrong approach or treatment towards gambling on which they do really believing that this could really be that able to save them up into their poor situation or
really just that thinking that they could be making out some huge changes about getting rich with it and make constant money on which this is really that a very wrong approach.
Loss or winning condition will really be that triggering out that kind of desperation on which it will really be leading out into disaster if you dont put up yourself on such right thinking or approach into it.
Gamble for fun then you should really be just that fine.

Chasing losses as a way of loss aversion is indeed a psychological trap that a lot of gamblers have put themselves in. This is a very easy way to lose your entire bankroll, even though there's a slim chance of recovering what you have lost its still to risky to try. The moment you get trapped in that cycle of trying to recover what you lost by gambling more you will continue losing. You must learn to inculcate self discipline and control. If you think about it for a second you would realize how dumb it is, how can you lose money in gambling and try to make back that money by gambling more it's absolutely ridiculous but to a gambler it's instinctical.

My bad.
I actually posted the link in one of my post later on;
But you are right I must have included that into my OP (which I just did). Also quoting another reputed member who already touched this;
I just gave a perspective on rake-back/loss-back practices used by casinos in the context of Loss aversion which is my own perspective (might be totally wrong) and that is it.
Thanks for pointing out a genuine concern.

And you think people can take their minds off gambling money? That is not possible, the majority of people gambling do it for the money and it will remain like that forever. Notwithstanding, even as they want to gain from gambling, the fairer/ more feasible advice is for them not to be desperate for it, they can still pursue their quest of the money making and be responsible in gambling, we see that often around us, so it is do able. They only need to neutral their minds and admit that gambling is a luck-based activity that they can never be able to crack, so instead of chasing an impossible mission, they will rather be cautious with this understanding.

I have this consciousness while gambling because a casinos always explore the best mechanism to entrapped gamblers even though they are losing it wouldn't occur to them that it's the right time to set limit for themselves while gambling, overly it's as important as not to be carried by their rake-back/loss-back and their purpose of having that assigned is to keep gambler continue gambling without the subconsciousness of having them deceived in a particular circle to keep gambling and making much deposit with the intention of having them meet with their weekly/months bonuses.

It eventually boils to down to the same point that people with good self control are able to control their emotions and gamble responsibly.
The others are careless and spend more on gambling in the hope of winning more money.
If they really treat it as a fees to play the game then most gamblers won't get addicted to gambling at all.

The point is that gambling is risky and gamblers must understand that and not because the casino traps you but because gamblers allow themselves to be controlled by desire, the desire to win more and the desire to recover losses so that it will be difficult to stop.

We can really gain some good insights from here. Be open with some ideas and they can really help you when it comes to containing your gambling habits.
Responsible gambling is indeed hard to attain especially if you have no other activities in life to dedicate with. But if you have other tasks that you can be busy of, I believe, it would be quite easy to manage your gambling habits.

The concept is quite on point and this is the first time I'm learning about such.
I usually tend to control loss than aiming for profits.
But like we know about behavioral theories they usually end up been subjective due to humans unpredictabilities.
I might fall in the category of the concept doesn't mean all would but majority do and I can see how casinos can gain from this.

The concept of losing is part if a casino and gambler, so the best thing to do as a gambler is that, you will have to make yourself very comfortable with losing to the point that you naturally have no reaction for it since you already know that losing is part of the game as long as you chose to gamble, so when it comes your reaction towards it is what matters most.

Being bias about how a gambler react to both loses and winning is a mental balance thing and if one has an emotional influence on this it will greatly affect they overall reasoning and judgement of things, so for that the subject of how a person react to losing in gambling is subjective to individual make ups.

Loses can actually be avoided if only gamblers will learn to gamble for what it's meant for, which is fun and nothing more. While gambling for fun, one can lose money quite alright, but loses in such in situations and mindset isn't actually a loss, but more of like paying for a service.

People go to the movies and spend their money to watch a movie, how about going to a concert to watch your favorite artist perform your favorite songs, money is spent to achieve this.
Same way also, people can actually spend money to play their favorite games and have fun with it, but unfortunately, most gamblers today careless about the fun in gambling and are much more focused on gambling to make money, this is why the loses count for most gamblers.

Every gambler must have the hope of winning. No gambler is happy with a loss. The attitude of not accepting defeat is indeed the background of gamblers who can gamble emotionally. Gamblers are likely to lose control of the bets they make. This is because of their desire to recover the money they have lost. I see it more in the psychological unpreparedness of gamblers. So they understand the risk of loss in gambling but are unable to control their own emotions to determine limits.

I find this like taking revenge, since people don't want to get humiliated, they tend to retaliate.  in terms of gambling, people don't want to lose so in order to recover their losses, they tend to chase their losses which in the long run incur them more losses and the loop is formed.  Now the person is trap in an infinite loop until he realized that he was been trapped.


That should be the way but people tend to lose control when triggered which often happens in gambling.  So instead of the plan of having a bankroll of $100, the person end up spending 10x just to chase the losses until he runs out of fund.

Losing isn't something that people want but in gambling almost everyone loses money almost every day.
How we handle the losses is something that tells more about the person.
Some take it litely while the others panic and react worsely to their losses.
It's all in the mind though. The one who has a good self control is the one who can handle their losses well.

Casino built their business according to the human psychology which enables them more profits, and they are running as business so they will keep looking for the customers to be engaging also spend more money and it's our responsibility to know our limits and stop if the loss is unbearable.

It's good to know the term but I insist that we are solely responsible every decisions we make and blaming the circumstances can't help with anything.

This cognitive effect plays a role in the part where players chase losses. It's that itch that you need to scratch that you want to get when you gain profits, and the feeling when you lose, you want to feel better, and more plays and revenge respond to it. I believe you have done well in posting with the "loss aversion" and gambling psychology.

The person must be responsible and aware of these things that could urge someone to chase it. We should be mindful of this, and I hope the decision-making is correct.

Chasing a loss that has occurred or chasing a win is one of the irresponsible behaviors in gambling, people like this are usually people who are not ready to lose their money in gambling, and people like this are usually people who have high hopes for gambling until they feel tense and afraid to lose the money they bet and when the reality happens is losing money they can't accept it and then a desire to recover the loss arises which drives them to fall deeper into gambling. When someone is trapped in this circle, not only is defeat unavoidable but with themselves being addicted, defeat seems like something that is being pursued even though they have lost many times but with the encouragement of wrong thoughts or mindsets, they continue to gamble. The reason many people are trapped is because they cannot accept the defeat that occurred and this is actually wrong behavior.

I totally agree, loss aversion are in different forms, one is being too hesitant. People use the delay tactic out of hesitation to avoid losses and when they finally decide to stake on a particular round they end up losing. Just like you said gamblers chase their losses as a way to avert losses only to end up losing more money. Losing doesn't come with a good feeling and sometimes coming to terms with reality after losing is quite difficult, this is why a lot of gamblers try to chase what they have already lost by gambling more, once you are trapped in this loop losing is inevitable.

Stopping from gambling immediately when you think you already lost 40% so you don't have to lose more money. But that will not easily because gambling can tempt you to back to the games and spend the rest of your money. It needs a strong will that can say to yourself not to use all of your money so the psychological trap from casino will not work to you. We can not continue gambling after lose for some money because that can cause us lose control and hard to stop gambling. If you can control yourself better, you will see that is enough to playing gambling for today and you must stop gambling immediately before your losses becomes bigger. The psychological trap can makes you forget the limitation that you set it up before because there will be a wanting to continue gambling whether you lose or win.

The casino is business. And every business has to make money. Some of the money made will go into operations, salaries, and keeping the business afloat. I think we put too much blame on casinos which is not fair. Casinos are doing what every other businesses do. For example, those businesses that do "Black Fridays" and tell you they are giving 70% off when infact they are only clearing old sales and there is nothing really off there. They encourage impulse buying, reckless buying and all of those things. You don't blame the business. So it is with casinos, they are not responsible for irresponsible gambling, the individual. I like this cognitive bias which you have explained with respect to gambling and it is on every gambler to know this and hold themselves responsible for their gambling behaviour.

Most people will not like the face the fact that they lost money in gambling and they are themselves to blame for that. Be it their greed or their guilt, they will not want to face it.

In fact if you lose money and face the fact that you are the sole responsible person for it, the vicious cycle ends and you dont go back to play right away by try to work hard and earn money again.

It is how the casinos control the gamblers, they appear to give some nudge back to stimulate them to play but in the long run the casino wins more.

The main idea behind this topic was widely developed by Kahneman. I should refresh my memory, but I think that he compared psychological differences between winning, losing, not winning and not losing, and yes, the results were impressive.

About not losing, I think that this is something that we all have experienced before in many aspects of life, and gambling is not an exception. I remember myself raising the stakes when I was a child to get some chips back, until I almost lost them all. Fortunately for me, I was lucid enough to stop in time, and the bad feeling it left me was a learning experience that lasts until today.

Like so many things in life, it's a lesson that is learned the hard way, and the sooner the better. Plan on beforehand and, if you lose, learn to accept it.

I try to keep it simple... If I decide to spend some money on gambling I will do it, I will play as I like to play and choose games I find attractive at that moment. Many casinos now have all sorts of features, and that's a good thing. If I get something from wagering that's just more money for playing.

I don't find loss aversion as a critical factor for responsible gambling. Most of us change our approach to gambling depending on our current mood, we change styles and in many cases, the game itself affects our gameplay, that's why we sometimes fall into tilt and more extreme gambling when we chase losses by playing with higher stakes. And all that is normal, it's all fun & games if it's the amount we can afford to lose, the first rule of responsible gambling, deposit only the amount you can lose. Make 10 deposits if your budget allows you, but once you deposit the money you can't afford to lose you are getting into a problem, and the more you do it the problem will be bigger.

I think I agree with you on this, casinos use this psychological trap on gamblers to get them addicted to the system. It takes a disciplined mind to accept losses and simply move on and try to forget about it. Most gamblers feel the need to recover what they've lost and 90 percent times this only makes them lose more money. Once you have found yourself in this loop you are going to lose constantly. I think another concept to lose aversion would be avoiding the game totally, but trying to get back what you lost based on the feeling of regret is a dangerous move.

The psychological impact of loss aversion affects gamblers on different levels, and it depends on personality. Some people stop playing after a losing streak to avoid further loss, while others become more determined to win and double their stakes. Meanwhile, some individuals stick to their routine, regardless of wins or losses, since they don't exceed their budget.

Loss aversion varies from person to person. Responsible gamblers, often those who've learned from past experiences, recognize casinos' tactics to keep them hooked and ignore the tricks. They play normally and move on.

Casinos offer small rewards to exploit fear of losing, but it's up to the individual to decide. Will they fall into the casino's trap, increasing stakes, or end the game and walk away? The psychological effect is real, but it's up to each person to act on it.

Some people are just built differently lol

I have encountered people, don’t know if they would be called brace or stupid, who would risk their hard earned money for the prospect of more. Sometimes it works out and they are hailed smart and amazing but most of the time, it doesn’t work out and they are just seen as reckless and stupid.

I think there should be a fine line between maintaining security and also risking things to reap maximum rewards.

Human tendency is like this only my friend. We care a lot about our hard-earned money. Hence, instead of thinking of profits, we pray that we don’t face any losses. It’s better to have some money than no money, right? But yes, I also agree that this mindset hampers our decisions up to certain levels. We need to understand that if we take risks, then only the risks will be converted into profits. Gambling is all about risking; hence, we need to be very careful with all the steps that we are taking.

Risk management is something that must be understood before really jumping into the world of gambling. However, it is unfortunate that among them, gamblers do not care about this. In gambling, the risk of losing is always higher than winning, so it would be a bad thing if we spend too much money on betting. Because, this will only make us experience many losses. On the other hand, this will also only bring us closer to the risk of experiencing gambling addiction. Therefore, this risk control management is very important to consider before starting a gamble

A casino is a business, which is built to generate a profit, so it would be very silly if we go to gambling by placing lots of bets and hoping to get more profit from the bet. Therefore, come to the casino with the aim of seeking pleasure and enjoying it, not seeking profit. The casino is nothing more than a place of entertainment and you have to pay more for the pleasure you get in gambling.

It is a path with only leads to bankruptcy and addiction if one does not learn to identify those feelings and one gets carried away by them.
Funnily enough, I recently had a quite remarkable experience which serves as a good example for the topic of this thread.
I was playing blackjack on stake because I was bored, I started winning and I felt like I could have a little bit more, using my good luck, in the third hand playing blackjack I ended up lossing, immediately triggering me to continue to wager in order to get my money back, at least to break even with the house.
Though, I did not fall for it, accepted the loss and decided to move on from all of it. It is quite difficult to do so, but it is part of the discipline which is necessary for any gambler not to go bankrupt or addicted in a very short period of time...
Others with little knowledge and self-control would have chased those losses as fast as possible and end up penniless.

Nobody likes to lose money, but everything gets worse when people are gambling and betting money because when they lose, people get angry and start thinking about how many things they could have bought with the money they lost and for this reason they run after the loss and when they lose again, they get even more angry and put more money to recover the losses, this path leads people to bankruptcy and addiction. Unfortunately, there are few people who are in gambling who can accept losses and not chase losses. Of course, casinos are a business. They give bonuses and promotions to encourage people to play more, even when they lose all the money they deposited at the casino.

Gambling may be a distinct phenomenon, but it is not unique, because if we consider it a waste of time and money, then other activities can also be included in the same list, such as buying alcohol or drugs.
This is an illustrative approach only, but by delving deeper into gambling, finding pleasure in losing money may not be entirely correct/wrong because the goal of any gambler is to win and he cannot be happy with his loss. With the exception of unique cases of very wealthy people who always raise the slogan “Loss is an eternal treasure,” it can be considered a pathological condition like neurotic psychosis that makes a person take pleasure in unreasonable behavior or manifestations, such as enjoying pain or celebrating loss.

If they can think wisely, they will not trying to recover their losses but stop their gambling activity especially after losing for some money. They know that will not easy to get their lose money back to them because casino will not let that happen easily. That needs more responsible from them so they can know that gambling is just for fun reason. Even if they have some money left, they don't have to try to recover the lose because that can makes them lose all of their money in that day.

If he can learn about controlling himself from keep playing gambling, he can stop gambling anytime without thinks about the outcome that he gets before. He will consider that playing gambling is one activity that he can do in his spare time and not for makes money.

Doesnt matter whether this one pertains about loss back or simply chasing loses or in the other hand on which pertains about chasing winning or trying out to be a winner. It will really be still having on the same path to take and on the outcome that could possibly be experienced by a certain individual. Responsible gambling will always basing up on how you would really be that able to deal up with things specially on doing gambling. If you are someone whose really that having that awareness on the things that you are dealing into then its unlikely that you do really end up on a disaster on which that most people do really end up specially on dealing up with gambling. Loss aversion or hunting up for winning then it doesnt matter just like on what i have said above because actions to be made and immediate stopping will really be just that basing up on how good your control is on the time that unexpected results do happen. The key on here is that you should be strict when it comes on to your budget or gambling fund allocation because if you do really have that kind of behavior on which you are really that going beyond with those budget or allocation then this is something that makes up that disaster on the moment or time that you do get yourself derail with those plans you had set out earlier.
Always have that control and moderation when it  comes to fund handling because on the moment it do loses up all or depletes then this do indicates that you should really stop and dont tend to deposit even more.

Chasing losses is one of the common dilemmas of gamblers. As they want to recover their losses, they tend to continue their games thinking that they can get back what they had lost.
Lucky if you can still contain your gambling habits as you won't have financial troubles. However, if you feel you are going deep, better pause and assess your situation.

Being a responsible gambler does not mean that one is not going to incur loses. We can always lose bet and that should not always make us to tell guilty for taking the wrong bets. Even the expert gamblers do make huge loses too depending on the staked amount. I am very curious when I get and after the bet, I do try as much as possible to feel good and expect better outcome. Even though having a good strategy as a gambler does not guarantee that you are not going to incur loses, it is better to be prepared for big reward than going for smaller games that will never bring something tangible.

This is a widely known fact, but it is still important for those that may not be aware of it to know how their mind works, so they understand why they are feeling the way they are feeling and why the compulsion to gamble way too much is there, however, once the compulsion exist, it is going to be very difficult to stop themselves from gambling, as at the time the rational part of their mind is no longer in control.

Oh, now I understand, I actually thought you were being sarcastic by rejecting the good commendation, this even prompted me to reread your write-up in case I was missing something, only to arrive at the same point of view as I had from the beginning. Well, since you believe the praise I directed to you should have been directed to another person/source which I don't see as necessary, I withdraw it as you wish.

You never gave any source in the post to back your claims either, which means you didn't even credit those who you think deserve the praise than you, but it's fine.

I was saying that since cognitive bias of Loss aversion can be applied to various fields of human endeavor, and I contextualized this in terms of gambling. This contextualization has been done by many people before me; I just gave a subcontext of how it might relate to the loss-back/rake-back practices casinos employ now a days.
Therefore, I do not see it as my 'brilliancy.' I read something from various sources and just made a point.
I am not being sarcastic in any manner, nor did 'contextualization bias' have to do anything with you (praising me).  

Sometimes the mindset and attitude taken by each gambler can also be influenced by how much money they use in one betting session, when there is still a remainder that allows someone to continue it, it is possible for them to continue to pursue their defeat.
Implementing responsible attitude is not easy and it is indeed natural when someone has to try to win because this is in gambling, there is no goal that will really be prioritized by most gamblers except for the ambition to get as much victory and profit as possible.

I don't get you, biased contexts, how? Don't tell me you are being sarcastic now because what I read was on point and it's trying to balance the thoughts of the urge to gamble and the consequence of doing so for us to make an informed decision and even curb our excess if need be. That's my view and interpretation of it and personally, I appreciate it, so I see no reason why this is not a brilliant write-up. You might need more than just a piece of a line reply to convince me of that.

As long as we gamble with the amount of money we are willing to lose, this should never happen. However, if we are reckless enough to gamble with the amount of money we are not willing to lose, or in other words, gamble with the amount of money that is clearly intended for something else, then the desire to get back what has been lost will always be there and it will be quite difficult to forget the loss. Until finally we gamble again and collect more losses. And the more losses experienced, the harder it will be to forget them.

Therefore, gamble wisely, gamble with the amount of money that is ready to be lost. and always make sure that before you start gambling, that what has become your need has been met. and those who are stressed because of gambling are those who gamble with an amount of money that is clearly intended, such as to meet needs, pay bills or other things, which the money should be used for, they are reckless in using the money to gamble and end up losing the money.

The whole problem begins when gamblers are no longer interested about the fun aspect of gambling and rather prefer taking it as a source of doubling income or making earnings to satisfy needs. Any gambler under this influence begins to place priorities from the expected profits which stimulates more capital involvement without considering luck factors if on them or against them. Every gambler enjoys their win but can never be always lucky, so precautions should be deployed in other maintain a healthy bank roll without going bankrupt.

People are inherently bad at calculating risks in general, we have a tendency to overestimate our predictive abilities and underestimate the chance of losing. It can also form part of the reason that people get so addicted to gambling - because they are angry at their poor decision making skills and keep attempting to punish the casino/bookmaker by thinking we can beat the odds. The reality is that the dispassionate computer processing algorithms and now AI are able to crunch a lot more numbers in order to make an assessment based on historical precedents, across many different data sets and probably using more recent data, will on average perform better than the often random guesses that gamblers make.

This is very impressive to the core, completely and absolutely educative, I love every bit of all that you have said as it speaks of high understanding of human psychology and how gambling casinos are using it to up their chances of always winning up to 100 percent if not more, I think this is one information that every gambler deserves to come across, as i believe that if every gambler will understand this, maybe it could go a great length in teaching us to master responsible gambling, or perhaps, most gambler will ultimately stop gambling for a win, but simply gamble for fun, and if in the process, a good win comes on, then it's seen as a bonus and nothing more.

Many gamblers today see gambling as a means of getting money, some even treat it as business, and this ought not to be so because even in the beginning of days, gambling used to be for fun purposes only, until money got involved.

Anyways, I hope we all learn from this and or to become better gamblers.

I think I agree to what "Betwrong" said, because judging by the popular saying we usually use in the gambling community (i.e Gamble what you can always afford to lose), it simply means if an individual was able to gamble $100, it automatically means he or she was willing and able to afford to lose that exact amount of money, of which I see no difference on which will be more painful or happier, inasmuch as it's the same amount of money that is either lost or won while gambling. Hence, inasmuch as everybody wants to win more while gambling, for me, I think when an equal amount is involved, the level of dopamine or adrenaline is literally at equilibrium.

Well people's opinion and perspective differs from one another and in the aspect of responsible gambling I think chasing over losses have been one issues that can't be opted out while gambling but it's not like it could be seen as biased, yes we can't dispute the fact that we make losses and so we can't shy away from them as well since the main aim for gambling is to win and make profits then since we can't avoid winning, losses too should not be avoided cause they are all criterias in a game.

I think it has something to do with our survival instinct; survival is embedded in our consciousness that we only take risks when necessary and we value not losing; its about flight or fighting in our consciousness and both of these rely on keeping us survive, This is the reason why we tend to worry because we want to survive and this causes problem, like we failed to achieve our great potential because we are afraid of losing things like our self esteem and-respect.
This term is new to me, and its worth exploring so we can make the best decision about our existence.

It is because the more you win, the less you think you’d lose. Which is stupid to think obviously especially when gambling but at the moment, if you keep winning you’d probably feel on top of the world. Like there is nothing stopping you.

But there will be and this is the loss. By the time you lost, you won’t immediately feel defeated. You’d probably think it’s just a rare occurrence and you’d start winning again but it doesn’t happen again no matter how many times you repeat it. By then all you can think about is the money you’ve lost and not how much you’ve earned.

Because this is related to loss and talking about how human nature is a person and arrogance in humans, my opinion is quite simple, if you do not want to lose or loss do not gamble, do not try and never force when you don't have to lose anything in life to fight.

Because the key word is fear of loss or loss, which we understand that gambling will definitely make a loss, for me, then I have to manage money as a cost that I can tolerate the loss, but what, humans with arrogance and greed are also with their stupidity to trust something things which will not achieve other goals with the way of gambling.

the concept of taking for granted what you've already won explains this better because that's the only justification to the concept of loss aversion as explained by the OP.
I've seen instances where someone gambled and lost very big on Tuesday and was angered with bunch of statements that suggest he's never gambling again for a long time, it didn't take him up to 12 hours before placing another bet that resulted in a loss and then another one again.

The truth is that while individuals response to loss varies, the majority of people react more to looses that to the instances they win. A win makes it look like winning is a routine that you're used to while looses comes with a burning desire to iether gamble more as a way of recovering the loss.

The story of a man who advertised his son on Facebook and later sold him intending to pay his debt. He ended up using all the more for gambling and lost all. It was indeed a pathetic story caused by gambling addiction. And this behaviour can be developed because of the fear of experiencing the pain of failure. Because we hate the feeling of loss we end up taking more risks.

I agree with you OP, a lot of people will never want to let go of their losses because they feel cheated, but they want to win your own money and be happy. When a gambler cannot accept his losses for real and move on with his life, he will not give up on chasing his losses till infinity, until he realized that he can not win back all that he has lost, is when he will give up. When I was 14, I played a try your luck game, and I lost the first, second and third game. Because of my fear of letting go of the money I lost, I decided to keep on playing feeling I can win back my losses, but unfortunately, I lost all the money on me. That was my first gambling lesson to always accept defeat when gambling.

You know what is even more interesting to me? It is the fact that loss aversion also happens when you are winning, you tends to book your winnings prematurely (fear of losing).That is exactly why casinos offer cash out feature in sport betting and even many poker platforms also exploit this cognitive bias by allowing you to cash out on turn or river and charging more rake for run it twice/thrice.

There is a different factor why we chase losses; this is due to the adrenaline and dopamine effects on our momentum. loss aversion, is real and conclusive because we have seen many individuals come out with their decisions based on the theory of loss aversion, and there's evidence that this theory of loss aversion also plays a factor in gamblers's decisions, but we cannot apply this to all gamblers because every gambler is different from one another and circumstances play a major part.
At one point in my playing, I experienced loss aversion. I'm afraid to lose my money more than what I could gain, and there's also a point that I am concentrated on my rewards more than I could possibly lose.

Thanks but it has nothing to do with me. The information is already out there, even the contextualization of this bias.


Losing money is painful to almost everyone whether it happens within or outside your pre ascribed bank roll. The question that why people gamble has various answers in psychology (dopamine, adrenaline etc.). Here we are discussing one of the major factors which can lead a fun and entertaining [even money making {poker, sports etc.}]  activity towards an addiction.
Regarding your question about methodology, you will find it quite helpful; https://insidebe.com/articles/loss-aversion/

We have plenty of cases where people gamble away their rent money or their paycheck for entire month. A brutal one was Father sold his 11 month old baby to fund his gambling addiction.
The premise was that we hate the feeling of loss that is why we tend to chase losses in order to get rid of the feeling. To avoid this inner confrontation we take bigger risk which sometime even threaten the survival. These are impulse based decisions with little thoughts about planned and safe long term future. .

The man has 300 dollars. He lost $100. According to these scientific studies, should he bet on the last 200 dollars, despite the risk of starving to death? How did it happen that the premise (survival is more important than satiety) led to a consequence (to win at all costs) that contradicts the premise? By the way, the Nobel Prize is increasingly biased by politics and economic interests, rather than pure science. In other words, the Nobel Prize is not an indisputable proof. However, I will not argue, because I do not impose my opinion.

In general, there's a lot more to chase when you lose stuff compared to when you win stuff anyway. The difference between gaining and losing is massive in terms of attachment after all, since there's something you get to have and something you don't. I guess you can liken it for the idea of taking for granted what you receive (as well as the pain you get after losing those "taken for granted" stuff). Especially in cases where its in the heat of the moment, where gambling falls into.

Not that it can't be prevented though imo. Being aware of it at that moment is pretty much the only thing you'd really need afaik.

When you already know about that, you must prevent yourself not to getting in the trap by always controlling yourself in gambling. But once again, human will gets the lure to gambling because of the bonus that the casino gives.
Gamblers can lose more and more if they can not take care themselves and willing to chase the wins or recover their lose. Once they forget to control themselves, that time will be the time for them to gets more losses.

That is why you need to know how to avoids the temptation that the casino gives so you will not spends more money that you can not afford to lose. You will only playing gambling with enough money that you willing to lose if you don't have luck.

I don't understand this. If losing money is painful for you, why do you continue? Sounds irrational to me.

Start playing in a casino only if you are okay with losing what you have allocated for the game. You shouldn't even start otherwise. Also, I disagree with the notion associated with loss aversion that "the pain of losing $100 is often far greater than the joy gained in finding the same amount". How can you compare pain and joy? They're entirely different experiences.

Oh, this is very brilliant of you and another reason why we should know why we gamble and how we can continue it with preserved responsibly gambling. But unfortunately, it can't be possible with most gamblers or should I say it can't be easy with many because they normally gamble for the money. And if the money is the driving force, there is nothing you can say that will "enter their ears." This is why some people will have a very good-paying job and still be seeking riches from gambling, an activity that by history has not made the large majority of people engaging in it rich. We should indeed be wise.

Thank you for that.

It's all true and it actually happened to me. Right now, I have a big loss in one local online gambling application and I can say I am trying to move on from that loss although we cannot take the fact that the memory will still be there at the back of our heads.
I think that's the only way to avoid this. Forget all those losses and be a brand new gambler, a better one. We already know to ourselves that it is how gambling is made, for us to lose, so what else are we gaining from playing over and over again? Not much. Entertainment mostly. Emotional fluctuations. I don't even think that's a gain. It's not a good thing when you are all stressed with the losses and all you feel is rage, I'd rather avoid that.
Sports betting is also a good cure. Stick with your team, bet an amount that will just ignite your passion as a fan, and cheer louder. You won't be wasting too much money and you might win if your team will perform well per season.

Nobody wants to lose money, we all want to win. We feel more pain when we lose than the joy we get when we win even when it is the same amount. This has made us regret losses more than celebrate wins. This concept in gambling shows that because we dread the pain of losses we take more risks such as loss chasing to avoid or overcome it. Sometimes because you know that it will take you days to forget about a loss you decide to gamble more to avoid that experience.

It's good you posted it so that we can be able to know it and work on ourselves. We should be able to accept our losses in good faith and never be tempted to overcome them by gambling more. We should also celebrate our wins no matter how small.

Scientific concepts require research studies in order to be validated (though it is a social science, in principle). Loss Aversion is an established concept in various fields. You are right that individuals might behave differently, but knowledge will only be considered worth pursuing when it addresses universals. You might be interested in one of my old thread; Beyond the Cliché: Rethinking Human Uniqueness .

That was not my argument. I was explaining the psychological genesis behind this particular cognitive bias, how fear of shortage of food is much greater then joy of getting extra food because it is directly linked with survival.

Nobel Prize selection committee seems to disagree with you  as the Nobel Prize in Economics was awarded to Daniel Kahneman in 2002 for his work on prospect theory, which popularized the concept of loss aversion: 

I don't agree with that. In my opinion, the behavior when losing depends entirely on the personality. Some people want to turn things around in their own way, they will increase the stakes. Others, on the contrary, will completely stop playing (at least for a while), and certainly will not double down. There is such a division of people according to their constitution and character. Mesomorph, endomorph and ectomorph. The first ones will play "until they turn blue" until absolutely everyone loses. II also did not understand how overeating follows from a lack of food. If a person must avoid a lack of food, then why should he risk the "last meal" in the hope of "gorging himself"? There is no logic in this.

Yeah, humans are always trying to close the gap ASAP no matter  which field this gap is relevant to. Gamblers are always focused on their losses and being in such state do not exercise control over their emotions. I feel more than often the wild desire to retrieve immediately my  defeat in betting  which is  fighting inside my body with demand to chill a bit and stay cooled. ^{Sometimes I find a knack for changing the way of my gambling  to keep the allocated bankroll intact.}

Loss aversion is a cognitive bias in humans that shows that we tend to avoid losses more than we desire profits (twice as much). We avoid the confrontation of feeling that comes with loss, therefore taking more risk to chase losses.

Casinos use this to trap you in a vicious circle of addiction. They will give you loss-back/rake-back in the quantity, which might not have enough appeal for you to withdraw, especially after a big loss (which enabled that loss back). They will do this either by giving you your loss back or rake back in small installments (daily, weekly, or monthly) instead of giving you a lump sum amount one time. It is not that they cannot give you more, but they will deliberately do this because they want you to play with that amount and take bigger risks. After you lose that rake-back/loss-back, you will have an urge (twice as strong) to deposit and win back the lost amount (this is especially true if you are new to gambling), taking a higher risk to avoid the intra-confrontation with the fact that you have just lost x amount. The majority will lose again and again; some will even develop a defense mechanism to not even think about their big losses and continue focusing on depositing more money to cover losses.

This cognitive bias has some deep-rooted genesis in human psychology because of how we evolved. A shortage of food is more lethal than the happiness that comes with excessive food.

I am posting this because understanding this concept helps me become more responsible with my decision-making, and it might be helpful to you as well. I am eager to know opinions of other wise members.