Gambling involves the wagering of something of value on a random event. Gambling is considered an activity that can affect individuals, communities and societies.
The impacts of gambling are classified into three classes: financial, social and health. Financial impacts involve changes in the economic situation of a person. In addition, there are positive and negative financial impacts.
Social impacts are defined as intangible harms that have an impact on the quality of life of others. This includes pain and suffering experienced by problem gamblers, problems associated with the social networks of gamblers, and the costs of gambling to other people.
Often, the social impacts of gambling are underestimated. There is a lack of studies addressing these effects. However, some recent studies suggest that the overall level of harm increases as participation declines.
Health impacts are also important. Studies show that problem gamblers suffer from trauma, which is an additional risk factor. Additionally, gambling disorder is associated with social inequality. It is estimated that up to $10 trillion may be lost through illegal gambling.
As a result of this, the government bears major costs of gambling problems. These include regulation, professional training and the cost of educating the public about gambling.
On the other hand, the positive effects of gambling on the social life of gamblers have been studied less. For example, recreational gamblers report better health than non-gamblers. Moreover, some studies have indicated that the psychological benefits of gambling could enhance lower socioeconomic groups.