Let’s start with a definition. What is gambling? Gambling is betting on a thing that may or may not happen down the road. Whenever 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. 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 new York City airport?
How is gambling different from buying stocks and bonds? Stocks and bonds are thought about investments and not gambles because we can reasonably anticipate to come out ahead within the long haul. They may be risky although not within the same sense as gambling.
How is gambling distinctive from buying insurance? When we buy insurance coverage, we have been betting on an element that may or may not happen down the road. We don’t want to take the risk which it shall happen, so we pay somebody else (the insurance coverage company) to take the risk for us. When we buy homeowner’s coverage, for example, we are 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 because 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. Alternatively, society never approved of it since it was labeled an effort to get money without doing work for it. Society believed 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 despite the fact that we are unlikely to win in the long haul? We gamble for the excitement of the uncertain outcome. Some gamble to try and make their explanation financial dreams come true. Many people gamble for entertainment or enjoyment, such as a night out with friends at the casino or perhaps a bingo game for a charitable organization or perhaps a lottery ticket. Some think they can beat the odds and make a living out of gambling. There are actually folks who gamble since 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 perhaps the adrenaline rush of going for a chance. Casinos allow us to socialize and pass some time. There are 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 will 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 may lose control and become so fanatical that one can ruin you life or suffer other catastrophic consequences. So if you gamble, make sure you set limits and keep to the limits you have set.
