Gambling (also known asbetting orgaming) is the wagering of something ofvalue ("the stakes") on arandom event with the intent of winning something else of value, where instances ofstrategy are discounted. Gambling thus requires three elements to be present:consideration (an amount wagered),risk (chance), and aprize.[1] The outcome of the wager is often immediate, such as a single roll ofdice, a spin of aroulette wheel, or a horse crossing the finish line, but longer time frames are also common, allowing wagers on the outcome of a future sports contest or even an entire sports season.
The term "gaming"[2] in this context typically refers to instances in which the activity has been specifically permitted bylaw. The two words are not mutually exclusive;i.e., a "gaming" company offers (legal) "gambling" activities to the public[3] and may be regulated by one of manygaming control boards, for example, theNevada Gaming Control Board. However, this distinction is not universally observed in the English-speaking world. For instance, in the United Kingdom, the regulator of gambling activities is called theGambling Commission (not the Gaming Commission).[4] The wordgaming is used more frequently since the rise ofcomputer andvideo games to describe activities that do not necessarily involve wagering, especiallyonline gaming, with the new usage still not having displaced the old usage as the primary definition in common dictionaries. "Gaming" has also been used euphemistically to circumvent laws against "gambling". The media and others have used one term or the other to frame conversations around the subjects, resulting in a shift of perceptions among their audiences.[5]
Gambling is also a major international commercial activity, with the legal gambling market totaling an estimated $335 billion in 2009.[6] In other forms, gambling can be conducted with materials that have a value, but are not real money. For example, players ofmarbles games might wager marbles, and likewise games ofPogs orMagic: The Gathering can be played with the collectible game pieces (respectively, small discs and trading cards) as stakes, resulting in ametagame regarding the value of a player's collection of pieces.
Gambling dates back at least to thePaleolithic period, before written history. InMesopotamia the earliest six-sideddice date to about 3000 BCE. However, they were based onastragali dating back thousands of years earlier. In China, gambling houses were widespread in the first millennium BCE, and betting on fighting animals was common. Lotto games and dominoes (precursors ofPai Gow) appeared in China as early as the 10th century.[7]
Playing cards appeared in the 9th century CE in China. Records trace gambling in Japan back at least as far as the 14th century.[8]
Poker, the most popular U.S. card game associated with gambling, derives from the Persian gameAs-Nas, dating back to the 17th century.[9]
The first known casino, theRidotto, started operating in 1638 in Venice, Italy.[10]
Gambling has been a main recreational activity in Great Britain for centuries.[11]Queen Elizabeth I chartered a lottery that was drawn in 1569.[12] Horseracing has been a favorite theme for over three centuries.[13] It has been heavily regulated.[14] Historically much of the opposition comes fromNonconformist Protestants, and from social reformers.[15][16]
Gambling has been part of Singapore's history, though it was strictly controlled by the government for many years. In the mid-20th century, illegal gambling was common. However, with the opening of regulated casinos in 2010, the approach shifted. Today, the government enforces strict laws to promote responsible gambling and prevent illegal activities.[17][18][19][20]
Gambling has been a popular activity in the United States for centuries.[21] It has also been suppressed by law in many areas for almost as long. By the early 20th century, gambling was almost uniformly outlawed throughout the U.S. and thus became a largely illegal activity, helping to spur the growth of themafia and othercriminal organizations.[22][23] The late 20th century saw a softening in attitudes towards gambling and a relaxation of laws against it.
Many jurisdictions, local as well as national, either ban gambling or heavily control it by licensing the vendors. Such regulation generally leads to gambling tourism and illegal gambling in the areas where it is not allowed. The involvement of governments, through regulation and taxation, has led to a close connection between many governments and gambling organizations, where legal gambling provides significant government revenue, such as inMonaco andMacau, China.
Most jurisdictions that allow gambling require participants to be above a certain age. In some jurisdictions, thegambling age differs depending on the type of gambling. For example, in many American states one must be over 21 to enter a casino, but may buy a lottery ticket after turning 18.[24]
There is generally legislation requiring that gambling devices bestatistically random, to prevent manufacturers from making some high-payoff results impossible. Since these high payoffs have very lowprobability, a house bias can quite easily be missed unless the devices are checked carefully.[25]
Insurance
Because contracts ofinsurance have many features in common with wagers, insurance contracts are often distinguished in law as agreements in which either party has an interest in the "bet-upon" outcomebeyond the specific financial terms; for example, a "bet" with an insurer on whether one's house will burn down is not gambling, but ratherinsurance, as the homeowner has an obvious interest in the continued existence of the homeindependent of the purely financial aspects of the "bet" (i.e., the insurance policy). Nonetheless, both insurance and gambling contracts are typically consideredaleatory contracts under most legal systems, though they are subject to different types of regulation.
Asset recovery
Undercommon law, particularlyEnglish Law (English unjust enrichment), a gambling contract may not give a casinobona fide purchaser status, permitting the recovery of stolen funds in some situations. InLipkin Gorman v Karpnale Ltd, where a solicitor used stolen funds to gamble at a casino, theHouse of Lords overruled the High Court's previous verdict, adjudicating that the casino return the stolen funds less those subject to anychange of position defence. U.S. Law precedents are somewhat similar.[26] Forcase law on recovery of gambling losses where the loser had stolen the funds see "Rights of owner of stolen money as against one who won it in gambling transaction from thief".[27]
An interesting question is what happens when the person trying to make recovery is the gambler's spouse, and the money or property lost was either the spouse's, or wascommunity property. This was a minor plot point in aPerry Mason novel,The Case of the Singing Skirt, and it cites an actual caseNovo v. Hotel Del Rio.[28]
Religious views
Max Kaur and religious leaders protest against gambling,Tallinn, Estonia.
Buddhism
The Buddha stated gambling as a source of destruction inSingalovada Sutra.
Professions that are seen to violate theprecept against theft include working in the gambling industry.[29]
Although the bible does not condemn gambling, instead the desire to get rich is called to account numerous times in theNew Testament.[32]
Catholicism
The Catholic Church holds the position that there is no moral impediment to gambling, so long as it is fair, all bettors have a reasonable chance of winning, there is nofraud involved, and the parties involved do not have actual knowledge of the outcome of the bet (unless they have disclosed this knowledge),[33] and as long as the following conditions are met: the gambler can afford to lose the bet, and stops when the limit is reached, and the motivation is entertainment and not personal gain leading to the "love of money"[34] or making a living.[35] In general, Catholic bishops have opposedcasino gambling on the grounds that it too often tempts people into problem gambling or addiction, and has particularly negative effects on poor people; they sometimes also cite secondary effects such as increases in loan sharking, prostitution, corruption, and general public immorality.[36][37][38] Some parish pastors have also opposed casinos for the additional reason that they would take customers away from churchbingo and annual festivals where games such asblackjack,roulette,craps, andpoker are used for fundraising.[39]St. Thomas Aquinas wrote that gambling should be especially forbidden where the losing bettor is underage or otherwise not able to consent to the transaction.[40] Gambling has often been seen as havingsocial consequences, as satirized byBalzac. For these social and religious reasons, most legal jurisdictions limit gambling, as advocated byPascal.[41]
There is a consensus among the'Ulema' (Arabic:عُـلـمـاء, Scholars (ofIslam)) thatgambling isharaam (Arabic:حَـرام, sinful or forbidden). In assertions made during its prohibition, Muslim jurists describe gambling as being both un-Qur'anic, and as being generally harmful to the MuslimUmmah (Arabic:أُمَّـة, Community). The Arabic terminology for gambling isMaisir.[56]
They ask you about intoxicants and gambling. Say: 'In them both lies grave sin, though some benefit, to mankind. But their sin is more grave than their benefit.'
In parts of the world that implement full Shari'ah, such asAceh, punishments for Muslim gamblers can range up to 12 lashes or a one-year prison term and a fine for those who provide a venue for such practises.[57] Some Islamic nations prohibit gambling; most other countriesregulate it.[58]
Bahá'í Faith
According to theMost Holy Book, paragraph 155, gambling is forbidden.
Types
Casino games
While almost any game can be played for money, and any game typically played for money can also be played just for fun, some games are generally offered in acasino setting.
Non-casinocard games, including historical games likeBasset,Ecarté,Lansquenet andPut. Technically, a gambling card game is one in which the cards are not actually played but simply bet on.[59]
Fixed-odds betting andParimutuel betting frequently occur at many types of sporting events, and political elections. In addition manybookmakers offer fixed odds on a number of non-sports related outcomes, for example the direction and extent of movement of variousfinancial indices, the winner oftelevision competitions such asBig Brother, andelection results.[61] Interactiveprediction markets also offer trading on these outcomes, with "shares" of results trading on an open market.
One of the most widespread forms of gambling involves betting onhorse orgreyhound racing. Wagering may take place throughparimutuel pools, orbookmakers may take bets personally. Parimutuel wagers pay off at prices determined by support in the wagering pools, while bookmakers pay off either at the odds offered at the time of accepting the bet; or at the median odds offered by track bookmakers at the time the race started.
Betting on team sports has become an importantservice industry in many countries. Before the advent of the internet, millions of people played thefootball pools every week in theUnited Kingdom. In addition to organized sports betting, both legal and illegal, there are many side-betting games played by casual groups of spectators, such asNCAA basketball tournament Bracket Pools,Super Bowl Squares,Fantasy Sports Leagues with monetary entry fees and winnings, and in-person spectator games like Moundball.
Based on Sports Betting, Virtual Sports are fantasy and never played sports events made by software that can be played every time without wondering about external things like weather conditions.
Arbitrage betting is a theoretically risk-free betting system in which every outcome of an event is bet upon so that a known profit will be made by the bettor upon completion of the event regardless of the outcome. Arbitrage betting is a combination of the ancient art ofarbitrage trading and gambling, which has been made possible by the large numbers of bookmakers in the marketplace, creating occasional opportunities for arbitrage.
Other types of betting
One can also bet with another person that a statement is true or false, or that a specified event will happen (a "back bet") or will not happen (a "lay bet") within a specified time. This occurs in particular when two people have opposing but strongly held views on truth or events. Not only do the parties hope to gain from the bet, they place the bet also to demonstrate their certainty about the issue. Some means of determining the issue at stake must exist. Sometimes the amount bet remains nominal, demonstrating the outcome as one of principle rather than of financial importance.
Betting exchanges allow consumers to both back and lay at odds of their choice. Similar in some ways to a stock exchange, a bettor may want to back a horse (hoping it will win) or lay a horse (hoping it will lose, effectively acting as bookmaker).
Spread betting allows gamblers to wager on the outcome of an event where the pay-off is based on the accuracy of the wager, rather than a simple "win or lose" outcome. For example, a wager can be based on the when a point is scored in the game in minutes and each minute away from the prediction increases or reduces the payout.
Many betting systems have been created in an attempt to "beat the house" but no system can make a mathematically unprofitable bet in terms ofexpected value profitable over time. Widely used systems include:
Card counting – Many systems exist forblackjack to keep track of the ratio of ten values to all others; when this ratio is high the player has an advantage and should increase the amount of their bets. Keeping track of cards dealt confers an advantage in other games as well.
Due-column betting – A variation on fixed profits betting in which the bettor sets a target profit and then calculates a bet size that will make this profit, adding any losses to the target.
Fixed profits – the stakes vary based on the odds to ensure the same profit from each winning selection.
Fixed stakes – a traditional system of staking the same amount on each selection.
Kelly – the optimum level to bet to maximize your future median bank level.
Martingale – A system based on staking enough each time to recover losses from previous bet(s) until one wins.
Gloria Mundi, or The Devil addressing the sun, a cartoon showing the British politicianCharles James Fox standing on a roulette wheel perched atop a globe showingEngland andcontinental Europe. The implication is that hispenniless state, indicated by turned-out pockets, is due to gambling.
Many risk-return choices are sometimes referred to colloquially as "gambling."[62] Whether this terminology is acceptable is a matter of debate:
Emotional or physical risk-taking, where the risk-return ratio is not quantifiable (e.g.,skydiving,campaigning for political office, asking someone for a date, etc.)
Insurance is a method of shifting risk from one party to another. Insurers use actuarial methods to calculate appropriate premiums, which is similar to calculating gambling odds. Insurers set their premiums to obtain a long term positive expected return in the same manner that professional gamblers select which bets to make. While insurance is sometimes distinguished from gambling by the requirement of aninsurable interest, the equivalent in gambling is simply betting against one's own best interests (e.g., a sports coach betting against his own team to mitigate the financial repercussions of a losing season).
Situations where the possible return is of secondary importance to the wager/purchase (e.g. entering araffle in support of acharitable cause)
Investments are also usually not considered gambling, although some investments can involve significant risk. Examples of investments includestocks,bonds andreal estate. Starting a business can also be considered a form of investment. Investments are generally not considered gambling when they meet the following criteria:
Economic utility
Positive expected returns (at least in the long term)
Underlying value independent of the risk being undertaken
Somespeculative investment activities are particularly risky, but are sometimes perceived to be different from gambling:
Securitiesderivatives, such asoptions orfutures, where the value of the derivative is dependent on the value of the underlying asset at a specific point in time (typically the derivative's associated expiration date)
Alevant orlevanting characterises the act of absconding following the outcome of a bet.[63]
Problem gambling has multiple symptoms. Gamblers often play again to try to win back money they have lost, and some gamble to relieve feelings of helplessness and anxiety.[64]
In the United Kingdom, theAdvertising Standards Authority has censured several betting firms for advertisements disguised as news articles suggesting falsely that a person had cleared debts and paid for medical expenses by gambling online. The firms face possible fines.[65]
A 2020 study of 32 countries found that the greater the amount of gambling activity in a given country, the more volatile that country's stock-market prices are.[66] Legalization of onlinesports betting was found to decrease household saving, decrease investment with positiveexpected value and increasefinancial distress.[67]
Gamblers may exhibit a number ofcognitive andmotivational biases that distort the perceived odds of events and that influence their preferences for gambles.
Preference for likely outcomes. When gambles are selected through a choice process – when people indicate which gamble they prefer from a set of gambles (e.g., win/lose, over/under) – people tend to prefer to bet on the outcome that is more likely to occur. Bettors tend to prefer to bet on favorites in athletic competitions, and sometimes will accept even bets on favorites when offered more favorable bets on the less likely outcome (e.g., an underdog team).[69]
Optimism/Desirability Bias. Gamblers also exhibit optimism, overestimating the likelihood that desired events will occur. Fans of NFL underdog teams, for example, will prefer to bet on their teams at even odds than to bet on the favorite, whether the bet is $5 or $50.[70]
Reluctance to bet against (hedge) desired outcomes.[71] People are reluctant to bet against desired outcomes that are relevant to their identity. Gamblers exhibit reluctance to bet against the success of their preferred U.S. presidential candidates and Major League Baseball, National Football League, National Collegiate Athletic Association (NCAA) basketball, and NCAA hockey teams. More than 45% of NCAA fans in Studies 5 and 6, for instance, turned down a "free" real $5 bet against their team. From a psychological perspective, such a "hedge" creates an interdependence dilemma – a motivational conflict between a short-term monetary gain and the long-term benefits accrued from feelings ofidentification with and loyalty to a position, person, or group whom the bettor desires to succeed. In economic terms, this conflicted decision can be modeled as a trade-off between the outcome utility gained by hedging (e.g., money) and thediagnostic costs it incurs (e.g., disloyalty). People makeinferences about their beliefs and identity from their behavior. If a person is uncertain about an aspect of their identity, such as the extent to which they value a candidate or team, hedging may signal to them that they are not as committed to that candidate or team as they originally believed. If the diagnostic cost of this self-signal and the resulting identity change are substantial, it may outweigh the outcome utility of hedging, and they may reject even very generous hedges.[71]
Ratio bias. Gamblers will prefer gambles with worse odds that are drawn from a large sample (e.g., drawing one red ball from an urn containing 89 red balls and 11 blue balls) to better odds that are drawn from a small sample (drawing one red ball from an urn containing 9 red balls and one blue ball).[72]
^"You bet".The Economist. 8 July 2010.Archived from the original on 8 December 2019.
^Schwartz, David (2013).Roll The Bones: The History of Gambling. Winchester Books.ISBN978-0-615-84778-8.
^Murdoch, James (1926).A History of Japan. Vol. 3 (reprint ed.). London: Psychology Press (published 1903). pp. 325–326.ISBN978-0-415-15417-8. Retrieved6 April 2018.Many Japanese are naturally prone to gambling; in the old Kyoto court the vice was rife, and in the fourteenth and fifteenth centuries samurai would often stake their arms, armour, and horse trappings on a cast of the dice, even on the eve of a battle, and so have to go into action in incomplete panoplies, and sometimes with no armour at all. In Tokugawa times the vice did not reach this extent among the samurai, but it became common in Yedo and continued to be so throughout the history of the city.{{cite book}}:ISBN / Date incompatibility (help)
^Wilkins, Sally (2002).Sports and Games of Medieval Cultures. Greenwood.ISBN978-0-313-36079-4.
^Prime Minister Lee Hsien Loong (18 April 2005)."Proposal to develop Integrated Resorts"(PDF).Developing Industries > Integrated Resorts > Ministerial Speeches & Comments.Ministry of Trade and Industry, Singapore. Archived fromthe original(PDF) on 27 November 2007. Retrieved17 January 2008.The first question was whether to have IRs at all. The answer was yes. Having settled that, the next question was whether to have one or two IRs. We decided on two IRs, because the Bayfront and Sentosa projects complement each other, because having two provides competition and critical mass, and because we believe that two projects will bring more economic benefits, without increasing the social cost commensurately; After weighing the matter carefully, the Cabinet has collectively concluded that we had no choice but to proceed with the IRs. As Prime Minister, I carry the ultimate responsibility for the decision.
^141 Cal. 2d 304, 295 P.2d 576 (3d Dist. 1956) (wife entitled to recover husband's gambling losses on the ground that he had made a gift of community property without her written consent); see also 38 Am. Jur. 2dGambling § 175 (statutory provisions allowing third parties to recover gambling losses).
^Simmons, Joseph P.; Massey, Cade (2012). "Is optimism real?".Journal of Experimental Psychology: General.141 (4):630–634.doi:10.1037/a0027405.PMID22329753.
^abMorewedge, Carey K.; Tang, Simone; Larrick, Richard P. (12 October 2016). "Betting Your Favorite to Win: Costly Reluctance to Hedge Desired Outcomes".Management Science.64 (3):997–1014.doi:10.1287/mnsc.2016.2656.ISSN0025-1909.
^Pacini, Rosemary; Epstein, Seymour (June 1999). "The relation of rational and experiential information processing styles to personality, basic beliefs, and the ratio-bias phenomenon".Journal of Personality and Social Psychology.76 (6):972–987.doi:10.1037/0022-3514.76.6.972.PMID10402681.
Further reading
Chambers, Kerry.Gambling for profit: Lotteries, gaming machines, and casinos in cross-national focus (U of Toronto press, 2011).
Ferentzy, Peter, and Nigel Turner. "Gambling and organized crime-A review of the literature."Journal of Gambling Issues 23 (2009): 111–155.
Ferentzy, Peter, and Nigel E. Turner.A history of problem gambling (Springer-Verlag, 2013)Archived 4 November 2018 at theWayback Machine
Haller, Mark H. "The changing structure of American gambling in the twentieth century."Journal of Social Issues 35.3 (1979): 87–114.
Richard, Brian. "Diffusion of an economic development policy innovation: Explaining the international spread of casino gambling."Journal of Gambling Studies 26.2 (2010): 287–300.Online
Schwartz, David G.Roll The Bones: The History of Gambling (2006), scholarly history with global perspectiveexcerpt
External links
Look upgambling in Wiktionary, the free dictionary.
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