Let’s start with a definition. What is gambling? Gambling is betting on something that may or may not happen in the foreseeable 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. 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 whole new York City airport?

How is gambling not the same as buying stocks and bonds? Stocks and bonds are thought about investments and not gambles because we can reasonably expect to come out ahead within the long run. They might be risky but not in the same sense as gambling.

How is gambling distinctive from buying insurance? Once we buy coverage, we are betting on an issue that may or may not happen later on. We don’t want to take the risk that it shall happen, so we pay somebody else (the insurance company) to take the risk for us. Whenever we buy homeowner’s coverage, for instance, we are betting our house will burn down and the insurance company is betting it won’t. (Of-course we hope we will not win this bet.) This is not gambling because the risk may be calculated. The insurance company uses all kinds of statistics to analyze research by the staff of Idu 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 because 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 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 even though 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. Many 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 a lottery ticket. Some think they can beat the odds and earn money out of gambling. You will discover those 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 may win. Some like the environment or perhaps the thrill of a possible big win, or perhaps 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 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 might lose control and become so fanatical you 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.