Let’s begin with a definition. What is gambling? Gambling is betting on an element that may or might not happen down the road. When we gamble, we take a risk, choose an uncertain outcome, and bet on it. Gamblers bet on casino games, horse racing, and sports where the result cannot be predicted with certainty. Many people will bet on anything. Remember the Seinfeld episode where Kramer bet on the arrival and departure times of airplanes at a new York City airport?

How is gambling different from buying stocks and bonds? Stocks and bonds are considered investments and not gambles because we can reasonably anticipate to come out ahead in the long run. They may be risky but not within the same sense as gambling.

How is gambling distinctive from buying coverage? Once we buy insurance coverage, we have been betting on something that may or may not happen in the future. We do not want to take the risk which it will happen, so we pay somebody else (the coverage company) to take the risk for us. Whenever we buy homeowner’s coverage, for instance, we have been betting our house will burn down and the insurance company is betting it will not. (Of course we hope we will not win this bet.) This isn’t gambling since the risk can be calculated. The insurance coverage company uses all kinds of statistics to analyze the probability of our house burning down and fixes the premium we’re going to pay accordingly.

Individuals have gambled since ancient times. On the contrary, society never approved of it since it was labeled an attempt to get money without doing work for it. Society believed that hard-work should pave the way to financial success. It was not until the late 1960s that states (except for Nevada which had legalized all forms of gambling earlier) started to run lotteries to raise money for worthwhile causes.

So why do we gamble despite the fact that we are unlikely to win within the long run? We gamble for the excitement of the uncertain outcome. Some gamble to attempt to make their financial dreams come true. Some individuals gamble for entertainment or enjoyment, such as a night out with friends at the casino or a bingo game for a charitable organization or possibly a lottery ticket. Some think they can beat the odds and earn money out of gambling. You can find individuals that gamble while they simply love the challenge. They look at gambling as a game of skill or problem-solving and they are sure they can win. Some like the environment or the thrill of a possible big win, or even the adrenaline rush of taking a chance. Casinos allow us to socialize and pass some time. You will find no clocks in a casino; we lose track of time; we forget all our troubles. It’s like a therapy session! If we are timid, we can go to a casino and boldly take chances.

Occasional gambling might be a relaxing form of entertainment but be careful not to get addicted. Addiction may lead to obsession. You could lose control and become so fanatical that you may ruin you life or suffer other catastrophic consequences. So if you gamble, make sure to set limits and toto keep to the limits you have set.