Let's start with a definition. What is gambling? Gambling is betting on an issue that may or might not happen later on. When we gamble, we take a risk, choose an uncertain outcome, and bet on it. Gamblers bet on casino games, horse racing, lottery agent and sports where the result can not 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 new York City airport?

How is gambling distinctive from buying stocks and bonds? Stocks and bonds are thought about investments and not gambles because we can reasonably expect to come out ahead in the long haul. They could be risky although not in the same sense as gambling.

How is gambling different from buying coverage? Once we buy insurance, we are betting on a thing that may or might not happen later on.