Let’s begin with a definition. What is gambling? Gambling is betting on an issue that may or may not happen in the future. 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 can’t 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 whole 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 anticipate to come out ahead in the long term. They could be risky but not in the same sense as gambling.

How is gambling distinctive from buying coverage? When we buy insurance, we are betting on an issue that may or may not happen down the road. We don’t 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 insurance coverage, for instance, we are betting our house will burn down as well as the insurance coverage company is betting it will not. (Of course we hope we will not win this bet.) This is not gambling since the risk can be calculated. The 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 effort to get money without doing work for it. Society thought that hard work 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 have been unlikely to win in the long haul? We gamble for the excitement of the uncertain outcome. Some gamble to try to make their financial dreams come true. Some 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 online ticket. Some think also they can beat the odds and earn money out of gambling. You’ll find folks 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 the thrill of a possible big win, or the adrenaline rush of going for 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 will go to a casino and boldly take chances.

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