Gambling Encyclopedia

by Jerry "Jet" Whittaker

March 14, 2006

GAMBLING or gaming, betting of money or valuables on, and often participation in, games of chance (some involving degrees of skill). Gambling was not a common-law crime if conducted privately. Even in colonial America, however, gambling was liable to rankle public opinion because it was often associated with rowdy activities and could. It is comprehensive, accurate, and well-organized. Furthermore, it is well-written in the kind of breezy, informal style best suited to the subject matter. The replete with history and anecdotes, some true and some probably fictional, as well as biographical sketches of celebrities who are associated with gambling in its many forms. The author is not shy about expressing his personal opinions and recounting some stories from his own experiences. This is an excellent choice for someone who wants to learn about or study gambling. Gambling has 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". Furthermore:

• the outcome of the wager is typically evident within a short period of time

• the primary intent of the bet is to win additional money or material goods

Definition of gambling:

• Emotional or physical risk-taking where what is being risked is not money or material goods (e.g., skydiving, running for office, asking someone for a date, etc.)

• buying insurance, as the primary intent of the purchase is to protect against loss, rather than to collect or win

• all forms of 'investment' (stock market, real estate) with positive expected returns and economic utility

• starting a new business, as time and effort are also being wagered and the outcome is not determined in a short period of time

Gambling varies on four dimensions:

1. What is being wagered (money or material goods).

2. How much is being wagered.

3. 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.

The 'expected value', the positive or negative mathematical expectation.

 

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