An Exploration of the Influence of Loss Aversion and Risk-Taking on Decision-Making among Onsite Gamblers in Northwest England

Abstract

This qualitative study explored the effects of loss aversion and risk-taking on decision-making processes among onsite gamblers in Northwest England. Using semi-structured interviews with eight regular gamblers, thematic analysis revealed losses are experienced as highly emotional events, frequently leading to loss-chasing behaviour that intensifies subsequent risk-taking. Risk tolerance was found to be dynamic, shaped not only by individual predispositions but also by situational factors such as winning or losing streaks, social presence, and environmental cues within gambling venues. The findings indicate that loss aversion and risk-taking operate through paradoxical feedback loops mediated by cognitive biases, emotional regulation, and immersive gambling settings. From managerial and organisational perspectives, these findings highlight the significant role of venue design, social atmosphere, and sensory signals in reinforcing harmful gambling behaviours. The study suggests gambling operators and policymakers should integrate environment-based harm-reduction strategies, including responsible venue design, staff training to identify loss-chasing behaviours, and interventions that disrupt cognitive biases at critical decision points. These insights contribute to the behavioural gambling literature by providing location-specific evidence and practical implications for gambling management, regulation, and public health–oriented harm reduction initiatives. Despite limitations related to sample size and geographic scope, the study provides a foundation for future research.