How Gambling Affects the Economy

Gambling is the wagering of something of value on a random event with the intent of winning something else of value. It is considered a recreational activity by most people, but for some it can become a problem. People gamble for many reasons, such as socializing with friends, getting a rush or feeling of excitement, or dreaming about what they would do if they won the lottery. People who are vulnerable to gambling addiction include those with low incomes, young people, and men. They may also have an underactive brain reward system, which makes them susceptible to thrill-seeking behaviours and impulsivity.

The most common costs of gambling are criminal justice system costs and social service costs, but there are also economic impacts from losing money. A study that strays from traditional economic impact analysis estimates these “spillover” costs by considering the effects of increased accessibility to gambling across a national economy. The authors estimate that these costs exceed the benefits of increased gambling (Grinols, 1995).

Gambling often triggers unpleasant emotions like stress, regret, and guilt. For this reason, people who struggle with gambling often try to hide their activity from others or lie about how much they are spending. This can lead to a vicious cycle where the person gambles to get back the money they have lost and is unable to stop, even when the losses outweigh the entertainment value. In addition, gambling appeals to greed and covetousness, which are against the teaching of the Bible (Colossians 3:5).