The Costs and Benefits of Gambling
Gambling is the wagering of something of value on an event whose outcome is determined by chance with the hope of winning a prize. There are various forms of gambling including lotteries, land-based casinos, riverboat casinos, bingo, pari-mutuel betting and sports betting. In addition to being a popular recreational activity, gambling is also an important source of tax revenue and provides employment opportunities.
Although there are many benefits to gambling, there are some people who may suffer from gambling addiction. Problem gamblers can experience a variety of harms that include loss of money, health problems, family relationships and work performance. They can also end up with serious debts that threaten their financial security and lead to homelessness. Problem gamblers often hide their gambling activities from family and friends, leading to a cycle of denial and secrecy. Fortunately, there are many organisations that offer support, assistance and counselling for people with gambling problems. They can help you stop the damaging behaviour and regain control of your finances and relationships. They can also teach you to manage your spending and budget.
It is estimated that over half the population in England takes part in some form of gambling activity. While for some, it is a fun pastime, for others it can have detrimental effects on their physical and mental health, their relationships, their performance at work or study and their ability to meet their living expenses. It can even cause them to get into trouble with the law and end up in serious debt and possibly homeless. In extreme cases, it can lead to suicide.
Research into the negative and positive impacts of gambling is sparse, with most studies focusing on one aspect or the other. The focus on harmful impacts and the neglect of positive ones is partly due to the difficulty in quantifying these effects. Studies that attempt to estimate the costs and benefits of gambling rely on a number of different methods, but none are considered comprehensive. Some studies use a health-related quality of life (HRQL) weighting to measure intangible social costs, and others attempt to estimate the impact of gambling using a benefit-cost analysis approach.
The majority of the costs associated with gambling are indirect. These costs are incurred by individuals and society/community level, but remain hidden as they are not reflected in official statistics. These costs are mostly non-monetary and can be categorized into personal level, general cost/benefits, and long-term cost/benefits.
Social costs are a major concern for policy makers, because they represent an unrecognized portion of the overall cost of gambling. These costs are primarily in the form of crime and public service expenditures, but may also include lost productivity. These costs can be difficult to quantify, and they can vary by time, location and type of gambling. A number of studies have attempted to estimate the economic costs and benefits of gambling, but they have largely focused on indirect or direct economic benefits and ignored the broader social impacts.