The Impacts of Gambling

Gambling is an activity where something of value (usually money, but also items and services) is staked for the chance to win a prize. This activity takes place in a variety of settings, including casinos, racetracks, video games, mobile apps and in online gambling. It is a major global commercial activity with a worldwide industry worth over US$335 billion in 2009. There are several reasons that people gamble, from social to financial. Social gambling may involve betting against friends in a home setting on card games like poker, or even in sports events such as football matches and horse races. This form of gambling is usually informal, small in scale and meant for friendly competition. Financial gambling involves the wagering of money or other valuables for a potential prize, often in an attempt to gain an advantage over others.

Gambling can cause harms, ranging from psychological to physical to social. Problem gambling can lead to suicide in extreme cases. In those cases, it is essential to seek help.

The impacts of gambling can be structuralized in three classes – costs and benefits – at personal, interpersonal and society/community levels. The former includes invisible, individual impacts and the latter include general costs/benefits, costs associated with problem gambling and long-term cost. The benefits of gambling can be framed using the concept of well-being and viewed through a cost/benefit analysis approach, or more specifically through a human capital perspective. In addition, other benefits of gambling can be framed using the concepts of enjoyment and recreation.