What is the general psychological impact on people’s decisions, and how do these decisions transform into a psychology of risk?
Psychology is the study of the mind and patterns of behaviour. Our everyday decisions are affected by external elements such as advertising, relationships, the workplace, or even who we vote for in the next election. Humans generally seek approval from their colleagues, friends, and family members and often feel the need to be part of a “tribe” or group. Another important factor is the social environment and upbringing of an individual. Different studies suggest that living in a stable and nurturing home as a child will result in an adult with a more balanced and stable mental state, while children who grow up in broken homes often have a more extreme psychological profile that can lead to addictive or even violent tendencies. These different psychological and social factors affect the final decision-making process to either continue with or abandon the activity depending on how much of a risk they are willing to take.
Risk Assessments:
Individuals often carry out risk assessments before deciding to participate in an activity and will evaluate it to decide whether the outcome will be positive or negative and the risks associated with that decision. Decisions are based on a variety of factors which can be influenced by the personality traits of the individual, as well as the benefits or possible negative consequences such as financial loss, potential injury, or other factors that can have a deep impact on the participants' way of life.
Psychological Characteristics that Affect Decision Making
Curiosity is a positive motivational and emotional method that is used to affront challenges such as new ideas, complexity, conflict, and also uncertainty. These are all ingredients that can lead to positive psychological development as well as the development of emotional and mental strength. The desire to enrich one’s knowledge further also comes with the risk of failure.
Optimism is one method of reducing stress and is often associated with individuals who have a cognitive ability that expects the outcome will always be positive. It is a way for individuals to cope with difficult situations while remaining optimistic through the use of positive methods when solving difficult problems.
Courage is one of the six core human traits, and these individuals are willing to work towards a goal despite the level of risk associated. Participants are aware of the risks that are involved but they either express no fear, feel fear, and overcome it, or they feel fear and disregard it to achieve the end goal. Courage comes in three different forms, physical, moral, and psychological.
Daredevil activities: Some individuals need to engage in high-risk activities such as Bungee Jumping or skydiving to satiate their need to live on the edge. The same could be said for individuals who bet online or in a casino - the risk of winning or losing gives them a natural adrenalin rush regardless of the risks that the activity may entail.
Why do Sports Fans Bet on Their Favourite Team?
Sports fans often have a deep psychological and emotional attachment to their favourite sports team and making a wager at a casino can have a very satisfying psychological effect regardless of the financial risk of losing. It makes them feel like part of a tribe of fellow sports fans who share the same passion and belief in a sports team. The psychology of betting can be a very intricate, complex, and logical process that delves into the statistics to try to ensure a win. Many individuals do not usually place a wager in a casino therefore betting on their favorite hockey team or on the team that has more expensive players, for example, is often solely based on emotional factors (the Affect Heuristic) and pays no regard to the actual odds of that team finishing the match with a successful outcome. Bets are often placed because the sports fan believes that betting on a team will make it win. Other bets are based on one outstanding performance, which creates a blind belief that the team will be successful in their next match despite evidence that is to the contrary. Betting choices can also be affected by bias, such as sports coverage and advertising, which, if properly executed, can directly influence which team the bettor will place their wager on. Often logic and reason are not adhered to and this is why the outcomes of wagering are often less than successful.
Casinos
Casinos can be a very fun and social environment and were first invented in Italy in the 1600s. The Ridotto was established in 1638 in Venice to provide a gambling environment that could be controlled. Over the next several hundred years, casinos became popular around the globe. In 1994 the first live casino games online were established in Antigua and Barbuda when the Free Trade and Processing Act made it possible for companies to open online casinos. Online casinos have enabled everyone to gamble from the comfort of their homes and there are even chat rooms to discuss the online game that is being played.
Online Betting Can Have Both Positive and Negative Effects
Betting has a deep psychological impact on its participants and should be approached objectively and with the idea of enjoying it for fun with the knowledge that you can win or lose. Making a risk assessment is always a great place to start before you decide to place a wager. Though an entirely safe and wholesome activity when practiced in moderation, it can go wrong, and there are many case studies to prove this evidence. However, other studies have proved that responsible online betting can even be beneficial to overall mental health if the participant establishes boundaries that will enable them to enjoy online gambling in a safe recreational manner.
On the downside, those with addictive compulsive gambling disorders are unable to make a risk assessment of the consequences of continually losing every wager at the casino and will continue to bet as they believe that the next wager will be the winning one. Unfortunately, these emotionally driven decisions may drive them into financial difficulty. Remember, know your limits and bet responsibly, and if you feel that you may be addicted to online casino betting, seek help - many organizations can assist you.