Document Type

Capstone Project

Publication Date

5-21-2026

Publication Title

UNLV Undergraduate Economics Working Paper Series

Publisher

University of Nevada, Las Vegas

Publisher Location

Las Vegas (Nev.)

Volume

3

Issue

2

First page number:

1

Last page number:

8

Abstract

This study looks at how previous gambling losses affect future betting behavior in online cryptocurrency gambling markets. Using roughly 50,000 real betting observations from Bustabit, the paper tests whether gamblers become more aggressive after losses or instead pull back and bet more cautiously. Using both OLS and Fixed Effects regression models, the results show that players generally reduce their wager sizes following losses rather than engage in strong loss-chasing behavior. After controlling for individual player tendencies, the Fixed Effects models show statistically significant decreases in future bet sizes after losses, suggesting that caution and loss aversion may play a larger role in online gambling behavior than traditionally assumed.

Keywords

Gambling Behavior; Prospect Theory; Cryptocurrency Gambling; Fixed Effects; Online Betting

Disciplines

Decision Science | Finance and Financial Management | Gaming and Casino Operations Management | Management Sciences and Quantitative Methods

File Format

PDF

File Size

297 KB

Language

English

Rights

IN COPYRIGHT. For more information about this rights statement, please visit http://rightsstatements.org/vocab/InC/1.0/

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