SEPTEMBER 23, 2023
As I slowly get that urge to go back to gambling at my local casino (45 minutes away local) I begin to wonder if it’s a scam? Have I been so blind by the adrenaline rush of gambling and euphoria of winning that it outweighs those negative consequences? The misguided belief you have when the next hand is the one, so you put the mortgage payment down! Well besides those scenarios and endorphin releases as you experience them, the truth is there is no way logical way of mastering gambling except not to do it. But it got me thinking on the other gambling pitfalls that do exist.
As always, we here at thinknewsnow.com like to consider the fallacies that we never consider in life. The fallacies are our main concern because we foolish think we can buck the trend of life’s challenges and outcomes. But when we don’t there is usually a specific name behind that fail, and it’s a fallacy. For Gambling, there is definitely a gaggle of them let’s go to the glossary of Fallacy!
The Gambler’s Fallacy: This is one of the most well-known fallacies in gambling. It’s the belief that if a particular outcome (e.g., a coin toss landing on heads) has occurred repeatedly in a series of independent events, the opposite outcome (e.g., tails) is more likely to happen in the next event. You have lost to the dealer 5 straight times and feel like number 6 is going to be the one time you win, most likely it won’t be, and then you extend it, maybe the 7th, 8th, 9th, wait I’m now out of money? The casino is counting on you to fall into this trap most often! But In reality, each hand or pull of the slot machine or spin of the wheel is independent, and past outcomes do not affect future outcomes.
Hot Hand Fallacy: This is the opposite of the Gambler’s Fallacy but also related. It’s the belief that if you’ve been winning consistently, you’re on a “hot streak,” and your chances of winning again are higher. Your intrepid author has often won a taxable jackpot and should have packed it in, but instead I get that hot feeling and I end up losing what could have been a paycheck sized win. But In reality, each game’s outcome (again) is statistically independent, and past success or failure doesn’t affect future results.
The House Always Wins Concept: While it’s true that casinos have a statistical advantage over players in most games, this doesn’t mean that individual players can’t win. You wouldn’t hear those yelps of joy or the loud sirens if the house always won.
But sometimes the myth is enough to blind a gambler or a player into thinking that they won’t win. The fallacy lies in the belief that the house winning overall implies that every individual player will lose. Many gamblers do win in the short term, but over time, the odds favor the house.
Chasing Losses: We’ve all done this, and gamblers and stock pickers believe that if they’ve experienced a series of losses, they are “due” for a win and will continue to bet more and more to recoup their losses. This is known as the “sunk cost fallacy.” In reality, gambling should be seen as a form of entertainment, and trying to recover losses can lead to even more significant financial losses.
Overestimating Skill: Some forms of gambling, like poker or sports betting, involve an element of skill. However, many gamblers overestimate their own skills and believe that they can consistently beat the odds. This overconfidence can lead to significant losses.
Systems and Strategies: Many gamblers fall for the fallacy that there are foolproof systems or strategies that can guarantee success in games of chance. In reality, no system can change the fundamental odds of the game. Strategies might help in managing bets, but they can’t change the underlying probabilities.
Luck is Controllable: Some gamblers believe they can control or influence luck through rituals, lucky charms, or superstitions. In reality, luck is random and cannot be controlled.
Perceived Skill in Games of Chance: Some people perceive games of pure chance (like slot machines) as having an element of skill, which can lead to overconfidence and excessive gambling.
Understanding these fallacies and being aware of the psychological traps that gambling can present is essential for responsible gambling. It’s crucial to approach gambling with a clear understanding of the odds, set limits on spending, and prioritize responsible entertainment over the expectation of profit. If gambling becomes problematic, seeking help from support services is recommended.