Gambling involves risking a sum of money or other valuables for the chance of gaining something of greater value. Depending on the context, it can involve a bet on sporting events or games of skill such as poker or bingo, or a wager with real money or materials that have monetary value such as marbles or collectible game pieces (like those used in the games of pogs and Magic: The Gathering). Some people gamble for pleasure while others are addicted to gambling, leading to problems such as financial difficulties, loss of employment, family and social issues and debt and mental illness. Gambling can also be a way for people to escape from boredom or stress, and may lead them to engage in other risky behaviors such as drug abuse and excessive drinking.
Problematic gambling is characterized by the compulsive and uncontrollable urge to gamble, even when the losses outweigh the wins. When gambling becomes a problem, individuals might secretly continue to gamble in spite of negative consequences and lie about their spending to friends or family members. They may also up their bets in a desperate attempt to win back lost money, and have difficulty stopping gambling once they’ve started.
A variety of different views on gambling and gambling problems exist in the research community, with some scientists and others arguing that the act of gambling is simply a form of recreation, while others argue that it is indicative of a range of other issues including diminished mathematical skills, poor judgment, cognitive distortions, mental illness, and moral turpitude. Similarly, the state governments which allow for gambling activities differ widely in their approach to this issue. While some limit the amount of revenue that can be generated from lottery sales, others use it to raise funds for a wide range of general state operations.
Various studies have attempted to quantify the benefits and costs of gambling using a range of methods. Often, the monetary benefits are cited, such as the consumer surplus or gains in leisure time. However, it is important to recognize that the social impacts of gambling are not purely monetary, and that these can be both positive and negative.
Impacts can be observed at the personal, interpersonal and community/societal levels. These are primarily nonmonetary and include the invisible individual and external costs and benefits that are generally not reflected in market prices or directly observed by gambling markets. These include the effects of gambling on gamblers’ relationships with significant others, and the effects of escalating gambling problems such as bankruptcy or homelessness.
The societal costs and benefits of gambling are more complex than those of other types of consumer goods or services. While some of these are monetary in nature, such as the increased demand for public services and changes in the cost or value of infrastructure, most are nonmonetary and may not be easily quantified. These include social costs that are not reflected in market prices, such as the effect of gambling on gamblers’ families.