Let’s begin with a definition. What is gambling? Gambling is betting on an issue 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. A lot of people will bet on anything. Remember the Seinfeld episode where Kramer bet on the arrival and departure times of airplanes at a brand new York City airport?

How is gambling distinctive from buying stocks and bonds? Stocks and bonds will be considered investments and not gambles because we can reasonably expect to come out ahead within the long term. They might be risky but not in the same sense as gambling.

How is gambling different from buying coverage? When we buy coverage, we are betting on an issue that may or may not happen in the foreseeable future. We do not want to take the risk which it shall happen, so we pay someone else (the coverage company) to take the risk for us. As we buy homeowner’s insurance, for instance, we are betting our house will burn down and the coverage company is betting it will not. (Of course we hope we won’t win this bet.) This isn’t gambling because the risk may be calculated. The insurance 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.

People have gambled since ancient times. However, society never approved of it since it was labeled an effort to get money without doing work for it. Society believed that serious effort should pave the way to financial success. It wasn’t 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 even though we are unlikely to win within the long haul? We gamble for the excitement of the uncertain outcome. Some gamble to try and make their financial dreams come true. Many people gamble for entertainment or enjoyment, such as a night out with friends at the casino or possibly a bingo game for a charitable organization or a lottery ticket. Some think also they can beat the odds and earn money out of gambling. There are actually those that gamble since they simply love the challenge. They look at gambling as a game of skill or problem-solving and they are sure they may win. Some like the environment or even the thrill of a possible big win, or the adrenaline rush of taking a chance. Casinos allow us to socialize and pass some time. There are actually no clocks in a casino; we lose track of time; we forget all our troubles. It’s like a therapy session! If we have been timid, we can go to a casino and boldly take chances.

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