Gambling is an activity in which a person wagers something of value on an uncertain event with the intent to gain some advantage or avoid a loss. People gamble for a variety of reasons, including entertainment, socializing and skill development. However, gambling can also be harmful when it becomes an addiction. Symptoms of a gambling problem include conflicts in relationships, financial strain and feelings of anger, fear or shame. People who have an addiction to gambling may be unable to control their gambling habits and may hide evidence of their gambling from friends and family.
Gamblers who are at a higher risk for developing an addiction to gambling include adolescents, veterans, aging adults and those from Latino or Asian communities. In addition, gambling is more prevalent in lower socioeconomic households and communities with high unemployment rates. Addiction to gambling can lead to a range of negative effects, from financial problems and family stress to substance abuse and even suicide.
Various studies have attempted to measure the economic impact of gambling. Many of these studies focus on gross impact, which tries to capture the total amount of money that is generated by casinos. This type of analysis tends to neglect other factors, such as expenditure substitution and geographical scope. It also fails to distinguish between direct and indirect impacts, tangible and intangible impacts, and real and transfer effects.
Intangible costs are hard or impossible to quantify in dollar terms, and are typically omitted from gambling-related economic impact analyses. However, considerable progress has been made in making these costs more measurable. For example, environmental costs associated with casino development can be offset by the creation or expansion of wetlands.
Another factor that is difficult to measure in dollar terms is the social cost of pathological gambling. This cost includes criminal justice system, social service and other costs that can be attributed to an individual’s problem gambling. In a study that strays from traditional economic impact analysis, Grinols and Omorov attempted to determine whether the benefits of improved casino access would offset these social costs.
The underlying logic of all gambling games is that someone has an edge over the player. This advantage can be predetermined, such as the house edge in a game of roulette, or it can be fluctuating, such as the betting odds on a coin toss. This edge is what allows the casino or bookmaker to make a profit.
When a person gambles, they are making a bet against the “house” or the odds makers, and win or lose by the margin of those odds. In some cases, the “house” is a large corporation that owns and operates multiple casinos, while in others it may be the local community. In either case, the house has an advantage over the bettor that is based on its experience in running the business, and its ability to make decisions regarding bets. This difference can be substantial, and the result can be that a bettor is making bets against their own best interests.