Gambling is a form of risky entertainment that involves placing money or something of value on an event with a random outcome. It can include activities such as playing sports, buying scratchcards, betting on football matches or horse races and even online games like poker. Whether gambling is done in person or online, there are both negative and positive impacts on society and individuals. These impacts can range from financial to labor to health and well-being. They can also be observed on personal, interpersonal and community/societal levels (see Fig. 1).
Gambling has become an increasingly important source of revenue for many countries and regions. The revenues can be used for many purposes, including public services, infrastructure development, and economic growth. However, it is important to consider the effects of gambling on society and individuals in order to determine if the benefits outweigh the costs.
The benefits of gambling include a sense of excitement, relaxation, and social interaction. Some research suggests that gamblers also experience a heightened awareness of their own luck, which can help to increase self-esteem and confidence. In addition, the escapism provided by gambling can help to reduce stress and depression. However, gambling can be addictive, and some people have difficulty controlling their spending. Moreover, some individuals are genetically predisposed to thrill-seeking behaviours and impulsivity, which may make them more susceptible to problem gambling.
In general, most adults who participate in gambling do so responsibly. However, 4-6 million adults (1%) in the United States would be considered to have mild or moderate gambling problems, and many of these individuals are at risk for developing serious symptoms. Problem gambling is associated with many negative outcomes, including debt, family discord, substance abuse, and mental health disorders. The good news is that many individuals can overcome gambling addiction with treatment and support from friends and family.
Despite its harmful side-effects, gambling has several positive effects on the economy and society. For example, it can boost local tourism and stimulate the economy in regions where casinos are located. It can also provide jobs and tax revenue for governments.
Furthermore, gambling can improve cognitive skills, which are needed for work and life in general. In a study of elderly residents in a nursing home, the researchers found that those who regularly gambled scored higher on tests of concentration and memory than those who did not.
Gambling has both positive and negative economic and societal consequences, depending on the extent to which it is regulated and monitored. While the majority of studies focus on the impact of problematic gambling, there is a growing body of literature that examines nonproblematic gambling and its positive effects. These effects are often overlooked in economic costing studies, which typically rely on consumer surplus or disability weights to quantify harms and benefits. The use of these metrics can misrepresent the full scope of the costs and benefits of gambling, particularly when examining social impact. The PHIGam model aims to address this by using a holistic approach, which includes both negative and positive impacts on society.