Gambling is the wagering of something of value on an event with a random outcome, where instances of strategy are discounted. It is considered to be a risky and exciting activity, and it can be enjoyable for people of all ages and socioeconomic backgrounds.
Most adults and adolescents engage in gambling, but for some the behavior becomes problematic. People with a gambling disorder (a condition listed in the Diagnostic and Statistical Manual of Mental Disorders) have a persistent, recurrent pattern of gambling that causes significant distress or impairment. Those with a gambling disorder may also experience other problems, such as depression or anxiety.
A common problem with gambling is secretiveness, and people may lie to family members about their gambling activities or try to cover up debts. People with gambling disorders are at a higher risk of suicide than others, and they often feel they don’t belong in society.
Whether they are betting on a football game, buying scratchcards or playing online, when people gamble they choose an event – such as a football match or a lottery draw – and they compare this to the ‘odds’ offered by the bookmaker – these are the chances of winning. This choice is then matched to an amount that someone would win if they won, known as the ‘pot’.
There are two kinds of economic impact studies involving gambling: gross impacts and net impacts. Gross impact studies focus on a single aspect of gambling and do not attempt to provide a balanced perspective of the issue; they typically neglect to consider expenditure substitution effects, and they do not make an explicit effort to identify costs (Fahrenkopf, 1995). Net impact studies are much more rigorous than gross impacts, but even these studies can miss important effects.