Chasing losses (definition and maths)

Chasing losses is returning to gamble in order to win back money, or other stakes, that you have just lost. The National Council on Problem Gambling lists it as a warning sign and describes it as going back to try to win your money back. The American Psychiatric Association also names it as a feature of gambling disorder.

Why it happens

A loss feels like something that is owed back. After a loss people feel pressure to restore the earlier position, so a smaller loss becomes a bigger bet. The result is often a larger loss, which raises the pressure again. The cycle is described as chasing because the target moves away each time.

The maths: the next round does not know

In games with independent rounds, a loss changes nothing about the next round. If you lose five 50 percent bets in a row, the sixth is still a 50 percent bet. The house edge also still applies, so on average each additional round costs a few percent of what you stake, and chasing increases the amount staked.

Here is a simple illustration with a game that keeps 3 percent of the amount wagered on average. You lose a 100-unit bet, then bet another 100 to try to recover it, then another 100. You have now wagered 300 in total, and the average cost of that is 9 units, on top of the 100 already lost. Doubling the bet each time to recover faster raises the total wagered quickly, so the average cost rises with it, and a long losing run (which is always possible) turns a small loss into a large one.

Common misconceptions

• "I am due a win." That is the Gambler's fallacy (definition and example).
• "If I just get back to even, I will stop." Reaching even is a moving target, and most people who chase continue past it, win or lose.
• "It only counts if it is money." The same pull can show up as time or effort, and the pattern is worth noticing at any size.

What helps

Setting a loss limit before playing, stopping when you reach it, and leaving the game for a while are common suggestions. A pause tool such as a Cooling-off period (gambling definition) makes the break harder to undo in the moment. Talking to someone, or contacting a helpline, helps many people. Cashout Arcade is a free-to-play casino-style app. It is not a treatment, and playing casino-style games is not recommended while you are recovering from gambling problems.