Objective. Feedback-related negativity (FRN) is associated with reinforcement learning and punishment sensitivity. Furthermore, reinforcement learning proficiency can be predicted from pre-task baseline EEG theta/beta ratio. In this study it was examined whether there was a relation between baseline theta/beta ratio in rest and FRN amplitude during a gambling task, and if such a correlation would be related to theta activity or to beta activity.Methods. Baseline EEG and a self-report measure of punishment sensitivity (BIS) were obtained from 52 healthy volunteers. FRN was recorded during a gambling task.Results. FRN amplitude was negatively correlated with theta/beta ratio in high BIS individuals. Furthermore, source localization indicated that baseline theta activity generated in the anterior cingulate cortex (ACC) accounted for this correlation. For low BIS individuals no correlation was found.Conclusion. An association between high baseline theta/beta ratio with low amplitude FRN and high risk-taking can be found in individuals who are sufficiently sensitive to punishments. This relationship is carried mostly by baseline theta activity, but not by beta activity.Significance: This link between baseline brain activity, self-report measures and feedback processing may contribute to further understanding the biological basis of conditions that are accompanied by abnormal theta/beta ratio and reward processing, such as attention deficit hyper activity disorder (ADHD).Key words: Feedback-Related Negativity, Baseline EEG, theta/beta ratio, Behavioral Inhibition System, risk taking, source localization 3 Highlights:Baseline EEG theta/beta ratio is associated with decreased feedback-related negativity and increased risk-taking during a gambling task.This association is only present in individuals with sufficiently high punishment sensitivity (BIS).Theta activity that is associated with decreased feedback-related negativity and increased risk-taking during a gambling task originates from the anterior cingulate cortex.4