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Let's begin with a definition. What is gambling? Gambling is betting on an issue that may or might not happen in the future. When we gamble, we take a risk, choose an uncertain outcome, and bet on it. Gamblers bet on casino games, horse racing, and sports where the result can't be predicted with certainty. Many people will bet on anything. Remember the Seinfeld episode where Kramer bet on the arrival and departure times of airplanes at a whole new York City airport?
How is gambling not the same as buying stocks and bonds? Stocks and bonds are considered investments and not gambles because we can reasonably anticipate to come out ahead in the long term. They might be risky although not within the same sense as gambling.
How is gambling not the same as buying coverage? Whenever we buy insurance coverage, we have been betting on an element that may or may not happen in the future. We do not want to take the risk that it will happen, so we pay someone else (the insurance coverage company) to take the risk for us. Once we buy homeowner's coverage, for example, we are betting our house will burn down as well as the insurance coverage company is betting it will not. (Of-course we hope we won't win this bet.) This isn't gambling because the risk can be calculated. The coverage company uses all kinds of statistics to analyze the probability of our house burning down and fixes the premium we shall pay accordingly.
People have gambled since ancient times. However, society never approved of it because it was labeled an effort to get money without working for it. Society believed that hard-work should pave the way to financial success. It wasn't until the late 1960s that states (except for Nevada which had legalized all forms of gambling earlier) started to run lotteries to raise money for worthwhile causes.
So why do we gamble even though we are unlikely to win in the long term? We gamble for the excitement of the uncertain outcome. Some gamble to attempt to make their financial dreams come true. A lot of people gamble for entertainment or enjoyment, trusted lotto dealers for example a night out with friends at the casino or a bingo game for a charitable organization or possibly a lottery ticket. Some think they may beat the odds and make a living out of gambling. There are actually individuals who gamble since they simply love the challenge. They look at gambling as a game of skill or problem solving and they are sure they can win. Some like the environment or perhaps the thrill of a possible big win, or even the adrenaline rush of going for a chance. Casinos allow us to socialize and pass some time. You will discover no clocks in a casino; we lose track of time; we forget all our troubles. It's like a therapy session! If we have been timid, we will go to a casino and boldly take chances.
Occasional gambling may be a relaxing form of entertainment but be careful not to get addicted. Addiction may lead to obsession. You might lose control and become so fanatical you could ruin you life or suffer other catastrophic consequences. So if you gamble, be sure you set limits and keep to the limits you've got set.