top of page

From the Betting Psychology Series

The Link Between Stress and Risk-Taking in Betting

Worry

Sports betting is often seen as a test of knowledge, analysis, and strategy. However, an often-overlooked factor in betting decisions is stress. It’s a powerful force that can hijack judgment and push bettors toward impulsive, high-risk wagers instead of calculated, strategic plays.


To illustrate, consider the case of Mike, a seasoned bettor who experienced a three-game losing streak on a Sunday afternoon. Frustrated and desperate to recover his losses, he placed an uncharacteristically large wager on the Sunday night game without researching matchups. This emotional decision, driven by stress, resulted in an even greater loss. Stories like Mike's highlight why understanding stress is crucial for bettors.


Another example comes from Sarah, a recreational bettor who typically placed small, well-researched bets. After a stressful day at work, however, she found herself chasing losses and making multiple bets in rapid succession without analyzing the odds. The combination of workplace stress and frustration from a losing streak led to poor decision-making and further losses. This showcases how external stressors, even those unrelated to betting, can contribute to irrational gambling behavior.


A 2019 study from Princeton University, published in the Journal of Behavioral Decision Making (Porcelli & Delgado, 2019), found that individuals under stress exhibit significantly higher risk-taking tendencies, especially when financial rewards are involved. The findings suggest that stressed individuals perceive risk differently. They often ignore long-term consequences in favor of immediate relief. This is especially relevant in sports betting, where emotional swings influence decision-making in real time.


Cognitive scientist Dr. Sian Beilock, president of Dartmouth College and author of Choke: What the Secrets of the Brain Reveal About Getting It Right When You Have To, explains: “Stress floods the brain with hormones that shift control away from the prefrontal cortex, the part of the brain that handles logical thinking, into areas that process emotion and habit” (Beilock, 2010). This shift explains why bettors under pressure may rely on superstition or flawed hunches instead of analysis.


When stress levels rise, whether from financial pressure, past losses, or life circumstances, it can distort perception, alter risk evaluation, and increase impulsivity. Research consistently shows that stress impairs decision-making and erodes logical thinking. That’s a dangerous combination when money is on the line.



Examining the Biological Impact of Stress

At its core, stress is a biological response. When facing pressure, the brain releases cortisol and adrenaline. These hormones prepare the body for immediate action. This fight-or-flight mechanism serves an evolutionary purpose but disrupts reasoning processes required for thoughtful betting.

Studies on gambling behavior reveal that stress leads individuals to overestimate potential rewards and underestimate losses. After a string of losing bets, many bettors double down rather than step back. This reaction is fueled more by emotion than logic.


Crucially, stress shifts decision-making from the prefrontal cortex, responsible for analytical thinking, to the amygdala, which handles emotional processing. This neurological rerouting leads to impulsivity and poor judgment. A 2021 review in Frontiers in Psychology by researchers at the University of Heidelberg (Starcke & Brand, 2021) confirmed this dynamic, showing that gamblers under stress display reduced prefrontal activity and increased emotional reactivity.



Differentiating Acute and Chronic Stress in Betting

Not all stress affects bettors the same way. Two primary stress types influence decision-making differently.


Acute Stress: Reacting to Sudden Triggers


  • Caused by immediate events such as a bad beat, a surprise lineup change, or volatile odds shifts

  • Often leads to snap decisions, especially in live betting situations• Bettors may react emotionally instead of reassessing the strategy


Chronic Stress: Enduring Emotional Pressure


  • Rooted in ongoing factors like financial instability, long losing streaks, or external life pressures

  • Promotes long-term habits such as increasing unit sizes, overbetting, or ignoring bankroll limits

  • Erodes discipline slowly, even among experienced bettors


According to a 2020 survey by the National Council on Problem Gambling, 33% of respondents said they had placed a bet specifically to cope with stress or anxiety. This highlights how frequently emotional states, rather than logic, drive behavior in high-pressure betting environments.


Recognizing the type of stress you're under gives you the power to intervene with better choices before the damage accumulates.



Identifying the Psychological Traps of Stress

Stress and risk-taking are deeply connected through cognitive biases that skew decision-making. Here are three psychological traps that often ensnare bettors during periods of stress:


  1. Illusion of Control

    Bettors under pressure may believe they can influence random outcomes. This leads to riskier bets based on feelings rather than data. Near-wins or streaks can falsely reinforce the idea that a big win is “due.”


  2. Overconfidence Bias

    Stress can inflate bettors’ self-assurance in flawed predictions. Warning signs, such as key injuries or poor team form, are ignored. Familiarity, such as always betting on your team, overrides cold facts.


  3. Sunk Cost Fallacy

    Bettors feel compelled to keep wagering to recoup prior losses. Stress amplifies this behavior, turning rational minds into reactive ones. Sportsbooks often fuel this with promotions like “bonus bets after loss.”


These biases gain strength when stress is high and self-awareness is low. The key is learning to spot them before they shape your next bet.



Applying Stress Management for Smarter Betting

Because stress is unavoidable, successful bettors train themselves to respond constructively. Here are methods to regain control:


  • Use cognitive behavioral techniques. Spot irrational thoughts such as “I’m due for a win” and replace them with rational alternatives. Before every wager, ask: “Is this based on evidence or emotion?”


  • Set firm bankroll boundaries. Predetermine daily, weekly, or monthly limits. This turns betting into a measured activity, not a reactive outlet.


  • Step away when needed. Take breaks after frustrating sessions, especially following back-to-back losses. A 20-minute walk or distraction can reset your mindset.


  • Practice mindfulness or breathing exercises. Even five minutes of deep breathing reduces cortisol and centers the brain. Meditation apps or simple breathing counts help create mental distance from the urgency of betting.


  • Use a walkthrough when tempted to chase losses. Imagine you’ve lost two straight bets and feel the urge to double your stake. Pause and walk through this scenario: What am I feeling right now: panic, frustration, adrenaline? Have I evaluated this new bet with the same rigor as earlier ones? Would I place this bet if I were on a winning streak? If any answer points to emotion over logic, step away. That moment of clarity might save your bankroll and your mindset.



Reinforcing the Takeaway

Stress is not just a side effect of sports betting. It’s a powerful disruptor of sound thinking. From biological shifts in the brain to psychological illusions of control, stress clouds judgment and intensifies risk.


Recognizing this connection gives bettors a competitive edge. By managing stress through limits, reflection, and mindfulness, you don’t just protect your bankroll. You sharpen your decision-making and build long-term discipline.


In sports betting, calm is a weapon. Use it before stress uses you.







The Link Between Stress and Risk-Taking in Betting

~Victory Dance Staff

DISCLAIMER: 

Victory Dance is an educational platform designed to empower users with tools, resources, and insights for smarter sports betting. We do not facilitate, manage, or accept wagers, nor do we act as a sportsbook or betting operator. All information provided is for informational and entertainment purposes only. Please bet responsibly:  never bet more than you can afford to lose. 

© 2025 by Victory Dance. 

Empowering Women to

Master the Odds

DISCLAIMER: 

Victory Dance is an educational platform designed to empower users with tools, resources, and insights for smarter sports betting. We do not facilitate, manage, or accept wagers, nor do we act as a sportsbook or betting operator. All information provided is for informational and entertainment purposes only. Please bet responsibly: 

never bet more than you can afford to lose. 

© 2025 by Victory Dance. 

Empowering Women to

Master the Odds

bottom of page