Let's start with a definition. What is gambling? excellent gambling is betting on an element that may or may 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 cannot 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 brand new York City airport?

How is gambling distinctive from buying stocks and bonds? Stocks and bonds will be considered investments and not gambles because we can reasonably anticipate to come out ahead within the long run. They could be risky but not within the same sense as gambling.

How is gambling distinctive from buying insurance coverage? As we buy insurance, we are betting on something that may or might not happen down the road.