The house-money effect applies to online sports gambling, as a new study measured how much bettors raise their stakes after a win.

“On days following a win, bettors also increase the size of their stakes by 41.1%, suggesting a house-money effect in which recent gains are perceived as disposable,” wrote researchers. 

The Australian paper, published in February 2026, comes from Kristle Romero Cortés, Sally Gainsbury, Robert Heirene, Mandeep Singh, and Susan Thorp.

Wins More Likely to Bring You Back

Sports bettors are 7.8% more likely to bet the day after a win compared to days without betting. In contrast, bettors are 6.4% more likely to bet the next day following a loss compared to days with no bets.

A day of betting makes it more likely you’ll bet again soon, with wins more significantly boosting these odds.

About a third of Australian adults bet on sports in a given year, with most sports betting events occurring during the weekend.

Chasing losses is a classic sign of problem gambling — and the study noted that sports bettors generally do this by seeking bets with longer odds and higher payouts. However, so is trying to keep a winning streak going. 

One psychological concept relevant here is intermittent reinforcement. Occasional rewards can strongly reinforce a behavior and make it harder to stop.

Gambling-related distortions can cut both ways. Frequent losses may make you feel due for a big win and reluctant to quit. Winning, on the other hand, can make you overestimate your abilities (i.e., overconfidence).

House-Money Effect in Common Language

In everyday language, many people wonder why gamblers bet until they lose. In other words, why don’t people quit when they’re ahead or “up” money?

Some people can walk away, but many others cannot. Casinos and sportsbooks probably wouldn’t exist if everyone listened to their first instinct to walk away after a significant windfall.

Beyond psychological explanations, another key factor is the addictive design of online gambling products.

These platforms are intentionally built to be habit-forming. People unaffected by these features can consider themselves fortunate.

Within gambling recovery circles, some people say that an early significant win played a major role in the development of their gambling problems.

In sports betting, that kind of big early win might come from a parlay.

Bottom Line

The study — “Wins, Windfalls and Willpower: Liquidity and Self-Regulation in Online Sports Gambling” — draws on a notable dataset of nearly 25,000 Australian sports bettors.

Australia is not the United States, so the comparison is not perfect, especially because the U.S. online sports betting market is much newer.

Even so, the Australian data offers useful insight into how the house-money effect may operate in sports gambling more broadly.

If you struggle with sports gambling, this study shows that trying to continue a winning streak is common. Hopefully, this helps you feel less alone and encourages you to seek support. 

Don’t feel ashamed if you have a problem with sports gambling. It’s incredibly common.

If you are betting in moderation, remember that winning now does not guarantee you are protected from problem gambling.

Image by Adam Lapuník from Pixabay