Gambling involves wagering something of value on a random event or game with the intent to win a prize. It requires three elements: consideration, risk and a prize. People can gamble in many different ways, such as by playing casino games, sports betting or lottery games. It can also take place online. It is a fun and rewarding activity for some people, while others find it problematic and addictive.
While gambling can be a source of fun and entertainment, it has several negative impacts on society. These effects can be seen at the individual, family and community/societal levels. These include financial, labor and health/well-being effects. At the individual level, financial and labor effects can include changes in personal finances, decreased productivity, time spent on gambling, increased debt and inability to work. At the family/interpersonal level, effects can include increased stress and conflict and the loss of social connections. At the community/societal level, external costs and benefits can include increased gambling revenues (tourism), a change in the economy and other industries, reduced crime and improved health and well-being.
The reasons for gambling vary from person to person, but often it is about seeking excitement or an escape from everyday life. Some people enjoy the social aspect of gambling, where they can meet friends and engage in activities they may not be able to do in their day-to-day lives. Others may feel that gambling is a way to reduce their anxieties and worries, or that they have an opportunity to gain more wealth. It is important to recognize that compulsive gambling can lead to serious mental health issues such as depression, anxiety or bipolar disorder, which can be difficult to treat.
Gambling can cause significant harms, such as an increase in debt and bankruptcy, family problems, poor health, increased risk taking and addiction. It can also impact the quality of life, particularly among children and adolescents. Some people seek treatment for gambling disorders, which are similar to other addictions, and can be treated with cognitive behavioural therapy (CBT).
In the last decade there has been an increasing interest in assessing the economic impacts of gambling and the development of policies that will minimize these harms. However, there are a number of methodological challenges in this area, including how to define the scope of gambling impacts, and how these can be measured and compared with other health and social costs and benefits. In addition, there is a need for better understanding the nature and magnitude of the economic benefits associated with gambling, so that these can be considered in policy-making decisions. This paper aims to review the literature and present a model that can be used for this purpose. It is intended to inform research and policy debate on the economic effects of gambling.