Dynamic Responses to Gambling Outcomes in iGaming Markets

Session Title

Gambling Markets: Policy & Behavioral Response

Presentation Type

Paper Presentation

Start Date

28-5-2026 12:00 AM

Abstract

This paper analyzes short-run behavioral responses in online gambling using comprehensive administrative data from a regulated iGaming market. The data record every individual game spin with exact timestamps, wagers, and outcomes, along with all deposit transactions linked to each player, providing one of the first opportunities to observe behavior at the level at which online gambling decisions are made. Exploiting within-player variation and flexible state-dependent specifications with player and time fixed effects, I examine how recent wins and losses affect subsequent play and deposit behavior. The results document rapid, nonlinear adjustments in gambling activity over short time horizons. By directly observing player behavior in online casino markets, this paper provides new empirical evidence on how individuals respond to risk and outcomes in a setting that has been largely inaccessible to previous economic analysis.

Author Bios

I am a fourth year PhD candidate at West Virginia University. I am affiliated with the WVU Center for Gaming Research and Development. I will be on the 26-27 job market.

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May 28th, 12:00 AM

Dynamic Responses to Gambling Outcomes in iGaming Markets

This paper analyzes short-run behavioral responses in online gambling using comprehensive administrative data from a regulated iGaming market. The data record every individual game spin with exact timestamps, wagers, and outcomes, along with all deposit transactions linked to each player, providing one of the first opportunities to observe behavior at the level at which online gambling decisions are made. Exploiting within-player variation and flexible state-dependent specifications with player and time fixed effects, I examine how recent wins and losses affect subsequent play and deposit behavior. The results document rapid, nonlinear adjustments in gambling activity over short time horizons. By directly observing player behavior in online casino markets, this paper provides new empirical evidence on how individuals respond to risk and outcomes in a setting that has been largely inaccessible to previous economic analysis.