What is Gambling

by Jerry "Jet" Whittaker
April 27, 2006

Gambling had many different meanings depending on the cultural and historical context in which it is used. Currently, in western society, it generally has an economic definition and meaning and typically refers to wagering money or something of material value on something with an uncertain outcome in hope of winning additional money or material goods.

Four Dimensions: Gambling

There are four dimension of wagering first, what is being wagered (money or material goods).second How much is being wagered. Third the predictability of the event. For some things such as lotteries, slot machines and bingo, the results are random and unpredictable. No skill or system will give you any advantage. For other things such as sports betting and horse, racing there is some predictability to the outcome. In this situation greater knowledge and skill gives a person an advantage over other bettors. Fourth the 'expected value', the positive or negative mathematical expectation.

Psychological aspects

Though many participate in gambling as a form of recreation or even as a means to gain an income, gambling, is like any behavior which involves variation in brain chemistry, can become a psychologically addictive and harmful behavior in some people. Reinforcement of this phenomenon may also make gamblers persist in gambling even after repeated losses. Because of the negative connotations of the word "gambling", casinos and racetracks often use the euphemism "gaming" to describe the recreational gambling activities, which they offer.

Legal aspects 

Because religious authorities generally frown on gambling to some extent, and because of various perceived social costs, most legal jurisdictions censure gambling to some of the extent. Islamic nations officially prohibit gambling; but most other countries regulate it. In particular, in the majority of circumstance and perhaps all cases the law does not recognize wagers as contracts, and views any consequent losses as debts of honour, unenforceable by the legal process. Thus, organized crime often takes over the enforcement of large gambling debts, sometimes using violent methods.

Because contracts of insurance have many features in common with wagers, legislation generally makes a distinction, typically defining any agreement in which either one of the parties has an interest in the outcome bet upon the other, beyond the specific financial terms, as a contract of insurance.

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