Gambling is the placing of something of value, usually money, at risk on an event with some element of chance in its outcome. The intent is to win something else of value, and the act is generally considered to be a form of entertainment. While most people who gamble do so without any problems, a small percentage develop serious gambling disorders, which are classified as mental health conditions in the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition (DSM-5). Gambling is considered to be one of the most addictive activities, and can result in many negative personal, family, and financial consequences.
Although gambling does have positive economic impacts, such as tax revenue increases and tourism impacts, it also has costs and harms that are difficult to quantify. The costs of gambling can be split into three categories: financial, labor, and health and well-being. These costs and harms have been observed at the individual, interpersonal, and community/society levels. Financial impacts can be manifested in changes in the financial situation of individuals, including debt, increased expenses, and income and wealth gains. Labor impacts include effects on work performance, absenteeism and reduced productivity. Health and well-being impacts can be manifested as changes in physical, psychological, and social health and wellbeing.
Most people who gamble do so for a variety of reasons. For example, they may be attempting to escape from the stress of everyday life by taking risks and hoping to win. Alternatively, they may be trying to get the “high” that is associated with gambling, which can be very addictive. Lastly, they may be doing it to meet the basic human need for social connection with others. This need is met through gambling in groups, where the participants are bonded by a shared experience.
When it comes to the financial aspect of gambling, a person must decide how much they are willing to wager and then place their bet on an event, such as a football match or a scratchcard. They must then choose whether they want to bet on a specific team or an overall winner, and then match their choice with ‘odds’ that are set by the betting company, which determine how much money they could win.
Depending on the amount of money that a person loses, they may attempt to recoup their losses by gambling again the next day, or they may try to find other ways to raise funds, such as illegally committing fraud, theft, forgery, or embezzlement. Some people have even jeopardized their relationships, employment, and education opportunities in order to finance their gambling.
The most common method used to study gambling is through economic costing, whereby the benefits and costs of gambling are compared against a baseline of non-gambling activity. This approach is flawed, however, because it excludes important social costs and benefits that are not directly measurable. Moreover, by focusing only on the negative aspects of gambling, it neglects to recognize that problem gambling has an impact on society at large.