Gambling is a risky activity in which an individual wagers something of value on a random event with the intent to win something else of value. It is a worldwide activity and has existed in virtually every society throughout recorded history. While most people gamble responsibly and enjoy it as an entertaining pastime, a small percentage of individuals become excessively involved in gambling to the point of developing problems. These problems have a variety of negative economic, social, and personal effects on the gambler and his or her significant others and families, as well as on society at large.

While some governments prohibit gambling, most allow it and regulate it to some extent. There are numerous forms of gambling, from casinos and lotteries to video games that feature betting elements and sports betting. People can place a bet at any time and from any location, and gambling has expanded to include online and mobile gaming. The ease of access to gambling has increased the potential for problem gambling among young people and other vulnerable groups.

Gambling has many positive effects on the economy, including job creation, consumer spending, and infrastructure improvements. It has also been shown to promote tourism, a vital source of revenue for some areas, and can provide a way for charities to raise funds. However, most studies focus on the monetary costs of gambling and ignore the social impacts, which are more difficult to quantify. Taking a public health approach, the negative and positive effects of gambling can be assessed using a model that divides benefits and costs into three classes: financial, labor and health, and societal impacts.

The financial impact of gambling includes gambling revenues, economic growth, and changes in the monetary value of assets. Labor impacts include gambling effects on the workforce, such as absenteeism and reduced performance, while health and well-being impacts encompass an individual’s physical, mental, and social functioning and overall quality of life.

While most individuals participate in gambling, a small percentage develops a problem, which can be classified as pathological or compulsive gambling disorder. This behavior is characterized by an inability to control the amount of money or other assets a person spends on gambling activities and the consequences of these actions on his or her relationships with family members, friends, and work colleagues.

Psychologist Shane Kraus, PhD, director of the Behavioral Addictions Lab at the University of Nevada, Las Vegas, points out that there are various factors that can make some individuals more susceptible to developing gambling problems, such as cognitive and motivational biases, as well as a preference for high-risk bets. He adds that young people and men are particularly at risk, with up to 5% of adolescents and adults who gamble developing a problem. He further notes that people with low incomes may have more to lose than those with higher ones, and this may contribute to their vulnerability to developing a gambling problem. In addition, the onset of gambling can coincide with other stressors such as divorce and the death of a loved one.