Let's start with a definition. What is gambling? Gambling is betting on a thing that may or might not happen down the road. As 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 not be predicted with certainty. Some people will bet on anything. Remember the Seinfeld episode where Kramer bet on the arrival and departure times of airplanes at a brand lottery online new York City airport?

How is gambling not the same as 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 term. They could be risky but not in the same sense as gambling.

How is gambling different from buying coverage? When we buy insurance coverage, we are betting on an element that may or might not happen in the foreseeable future.