Let’s start with a definition. What is gambling? Gambling is betting on an issue that may or might not happen later on. Once 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 not the same as buying stocks and bonds? Stocks and enquiry bonds will be considered investments and not gambles because we can reasonably expect to come out ahead within the long term. They can be risky but not in the same sense as gambling.

How is gambling different from buying insurance coverage? Whenever we buy insurance coverage, we are betting on a thing that may or may not happen in the foreseeable future. We don’t want to take the risk that it will happen, so we pay someone else (the coverage company) to take the risk for us. Whenever we buy homeowner’s coverage, for example, we are betting our house will burn down and also the coverage company is betting it will not. (Of course we hope we will not win this bet.) This isn’t gambling since the risk may 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 are going to pay accordingly.

People have gambled since ancient times. On the flip side, society never approved of it since it was labeled an attempt to get money without working for it. Society thought that serious effort 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 in the long term? We gamble for the excitement of the uncertain outcome. Some gamble to try to make their financial dreams come true. A lot of people gamble for entertainment or enjoyment, for example 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. There are actually individuals who 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 perhaps the thrill of a possible big win, or the adrenaline rush of taking a chance. Casinos allow us to socialize and pass some time. You can 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 could possibly be a relaxing form of entertainment but be mindful not to get addicted. Addiction may lead to obsession. You could lose control and become so fanatical that you can ruin you life or suffer other catastrophic consequences. So if you gamble, make sure to set limits and keep to the limits you’ve got set.