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gambling

 

Betting or staking of something of value on the outcome of a game or event. Commonly associated with gambling are horse racing, boxing, numerous playing-card and dice games, cockfighting, jai alai, recreational billiards and darts, bingo, and lottery. In most gambling games it is customary to express the idea of probability in terms of "odds against winning." In the U.S. casino gambling, once highly restricted, is now legal in many states, and lotteries are employed by many states to raise revenues. The Internet has also become a venue for placing bets. See also bookmaking; casino.

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Insurance Dictionary: Gambling
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Risk-creating device as compared with Insurance which is a risk-reducing or -eliminating device. This is a form of speculative risk.


No mention is made in the Bible of gambling. The first reference to it is in the Mishnah, which states, "The following are ineligible [i.e., to testify in a Jewish court of law]: one who plays dice, one who races pigeons ..." (RH 1:8). While most authorities agree that this ineligibility only applies to professional gamblers, the rabbis nevertheless are opposed to all gambling. In fact, the rabbis ruled that winning money at gambling, while not actual robbery, is close to it and therefore gambling debts cannot be collected through a Jewish court of law. In essence, the rabbis are opposed to gambling because it is unproductive as well as being akin to robbery, maintaining that all people should be engaged in activities that advance the welfare of mankind.

Even though the Mishnah only refers to dice and racing pigeons, the rabbis extended the prohibition to all types of gambling, though in an attempt to modify people's behavior, various communities allowed gambling at specific times, often during Hanukkah and Purim. However, they were not always successful and the literature is filled with Responsa dealing with fines imposed on individuals who had violated local community rules. Leo de Modena, for example, an eminent talmudic scholar who lived in Venice at the end of the 16th century, was an inveterate gambler, causing the community to fear that it would be brought into disrepute because of him. Finally, in 1628, it published a decree forbidding all gambling for a period of six years under the threat that violators would be excommunicated. Some rabbis have wished to forbid all games, including chess, claiming that the time spent playing games should be spent studying the Torah. However, the prohibition against chess has not been generally accepted..


Men and women throughout history and around the world have gambled. In the early colonial days, taverns were the main meeting place—and a place to put down a bet. In addition, gamblers and those who just placed an occasional bet had gambling halls, gaming rooms, saloons, even outdoor games to wager on. Indians, judges, Mexicans, physicians, Chinese, clergymen, African Americans, salesclerks, cowboys, and professional gamblers bet their money and sometimes their possessions on games of chance. Gambling venues included logging camps, elegant steamboats, railroad cars, boxing rings, and more.

Gambling was (and is)a form of entertainment. In the early days of the nation, people worked hard and often did not live near towns, thus when they did go to town they wanted to be entertained. Gambling gave an air of fairly harmless excitement and the payoff (or loss)was immediate.

Indians and Early Gambling

The Assiniboin Indians of North Dakota had a favorite dice game. Their two-sided dice had one side granting points when it came up; the other side did not. The dice were made of pieces of broken dishes or claws from a crow, with one side painted red, the other black. Buttons or other trinkets were also used as dice. Point values for each item were agreed upon before the game began. To make the game last longer and to have more at stake, the Assiniboins often played double or nothing. They would have one round with a set object as the prize. After round one, more objects—even wives—were added to the pot as the rounds continued. Sometimes games went on two and three days and nights, breaking only for meals. The dice games continued until one of the players had lost everything. Wives were property and had no say if they were lost to another man. They just moved. But there were some men who would not bet their wives, and fatal fights sometimes ensued.

The Zuni, Papago, and Hopi Indians liked to bet on foot races. Other tribes used hand games, the equivalent of, "Button, button, who's got the button." In this hand game, a button, or other small object, was placed in a person's hand. That person then began passing the button around the circle—or at least pretended to. Whoever was, "It" had to try to discern who had the button at any given time. If he was wrong, he lost the bet. Most betting included drumming and chants that grew more enthusiastic with each round.

In the 1830s Choctaw Indians played a serious game called, "ball play" that was similar to lacrosse and involved two teams, each consisting of ten players. Sticks about two feet long with a cup fashioned on one end were used to catch and throw a ball in this competition. George Catlin, the renowned Western artist, watched such a game with close to 700 young warriors as players. Women were in charge of the betting for this particular game. At stake were mostly household items, including dogs, horses, and guns. Spectators numbered in the thousands.

On the Upper Missouri River, the Mandan Indians' favorite game was, "the game of the arrow." Each young warrior who wanted to play had to pay an entry fee of a valued possession, such as a pair of moccasins or a robe. The object was to shoot arrows as fast as possible, seeing how many arrows could be launched before the first one hit the ground. In the game that Catlin observed, one of the warriors got eight arrows off and won all the prizes ("entry fees").

Gambling on Steamboats

Initially steamboats were used only to haul freight. In January of 1812, Robert Fulton introduced his boat, the New Orleans, as the first steamboat to carry passengers. By 1860, western rivers had 735 passenger steamboats plying their waters; these boats carried gamblers, who often took on the air of gentlemen, wearing knee-length black coats, ruffled white shirts, vests, and fancy rings. Referred to as "dandies," these professional gamblers were frequently con men who fleeced their victims in less than honest wins.

The belief was that 99 percent of riverboat gamblers cheated and worked with an accomplice. The gambler and his partner(s)would board the boats at different points, thus covering up their collusion. A team consisted of two, three, or up to six men. Some would play cards, while the others would give them signals. Tips were specific puffs of cigar smoke, holding a cane in a certain manner, wearing a hat at various angles, or anything that would not be obvious to the other players.

With their lavish frescoed walls, crystal chandeliers, and flowery carpets, the riverboats were expensive to run. The Great Republic was sold at auction in 1871 because fuel for the round trip from St. Louis to New Orleans cost $5,000.

Gambling Women

Women also gambled. Alice Tubbs, known as Poker Alice, was born Alice Ivers in Sudbury, England, in 1851; she moved to Virginia with her family in her late teens. She married a mining engineer in Colorado; his early death left her a young widow who soon became acquainted with gambling. Poker Alice learned her craft well in Colorado, practiced it in Oklahoma, and eventually found herself working as a faro dealer in South Dakota. She was apparently the only woman faro dealer that ever lived and worked in the Black Hills, primarily in Sturgis and Deadwood. Photos of Tubbs, who never played cards with strangers, always show her with a big cigar in her mouth. In the 1880s, Tubbs sometimes made $1,000 in just one evening of cards. Also a blackjack dealer and a madam, Poker Alice marched in the 1927 parade in Deadwood, South Dakota, when the town hosted President Calvin Coolidge. She died in 1930, having outlived three husbands.

Lotteries and Violence

Ironically, even though many churches frowned upon other forms of gambling, lotteries were and are accepted by nearly everyone. Many church buildings, schools, and even roads and bridges were built by proceeds from lotteries. Perhaps because the tickets did not have to be sold in the smoky saloons but could be sold by anyone, anywhere, lotteries were looked upon as a good way to raise money and were not truly considered "gambling." Some states banned them; others embraced them. States then and now, passed lottery bills, then fought over how much of the proceeds the state would receive and how they would be used.

James Monroe Pattee, a New Hampshire writing instructor, was the king of lottery sales. He migrated to California for a time then settled in Omaha, Nebraska. He created lotteries for worthy causes such as hospitals and libraries. In 1873 Nebraska outlawed lotteries and Pattee moved to Wyoming. In that state a lottery could be legally offered by buying a three-month license for $100. During his first year in Wyoming, Pattee bought a license every three months for a total of $400. He sold about $7 million worth of tickets in that year. Despite the small population of Wyoming, he was successful because he advertised in the New York Herald newspaper, thus getting out-of-state business.

Violence was often gambling's companion; perhaps the most famous murder was that of Wild Bill Hickok in Deadwood, Dakota Territory. Although Hickok had a strict policy of never sitting with his back to the door when he was playing cards, on 2 August 1866, for the first time, he sat with his back to the door in Saloon #10 and was shot in the back by Jack McCall. Hickok's poker hand—a pair of aces and a pair of eights—was from then on known as a "Deadman's Hand." The saloon is still operating.

Gambling on the Reservation

Large scale casino gambling on Indian reservations was allowed in 1987 when the Supreme Court ruled in Calfornia vs. Cabazon Band of Mission Indians that states could regulate commercial gambling on Indian reservations. Congress subsequently passed the Indian Gaming Regulatory Act (IGRA)in 1988. Proceeds of gaming operations were to be used for economic development and welfare of tribal members. Three levels, called classes, of gambling were defined. Class I: traditional tribal and social games with nominal prizes; this class is regulated solely by the tribe. Class II: in states where such games are legal and not prohibited by federal law, bingo, lotto, punch cards, and games played among individuals (not against the house)may be allowed or licensed by the tribe. Class III: casinos, which are the most highly regulated and must be legal in the state where the reservation is located; casinos are subject to state-tribal agreements. Such compacts delineate state-tribal regulatory authority; they also cover cooperative areas of criminal justice and payments to each state for enforcement and oversight.

From passage of IGRA in 1988 through the end of 1996, revenues from gambling on the reservations increased from $212 million to $6.7 billion. Of the 554 federally recognized tribes, the Bureau of Indian Affairs reports only 146 tribes with Class III gaming facilities. More than two-thirds of Indian tribes do not offer gambling; some tribes have voted not to offer gaming on their lands.

The Prairie Island Indian Community is one of eleven reservations in Minnesota and one of the smallest in that state. Prairie Island uses the revenue from its gambling operations to pay for some of its basic services and to improve the lives of tribal members. The largest Indian gambling facility in the United States, Foxwoods Casino (run by the Mashantucket Pequots)near Ledyard, Connecticut, employs about 13,000; the entire tribe has only about 500 members.

Alcohol consumption is not a given in reservation casinos; it is up to each tribe to decide if it will allow liquor to be sold on the reservation. In South Dakota, the Pine Ridge Indian Reservation is a dry reservation yet it owns and operates Prairie Wind Casino. It still draws visitors—and their dollars—to the reservation.

Bibliography

Moulton, Candy Vyvey. The Writer's Guide to Everyday Life in the Wild West From 1840–1900. Cincinnati, Ohio: Writers Digest Books, 1999.

Sasuly, Richard. Bookies and Bettors: Two Hundred Years of Gambling. New York: Holt, Rinehart and Winston, 1982.

MacFarlan, Allan, and Paulette MacFarlan. Handbook of American Indian Games. New York: Dover, 1985.

Eadington, William. Indian Gaming and the Law. Reno: University of Nevada Press, 1998.

—Peggy Sanders

 
Columbia Encyclopedia: gambling
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gambling or gaming, betting of money or valuables on, and often participation in, games of chance (some involving degrees of skill). In England and in the United States, gambling was not a common-law crime if conducted privately. Even in colonial America, however, gambling was liable to rankle public opinion because it was often associated with rowdy activities and could produce debtors who would burden society.

In the United States, state laws largely govern gambling. Some states prohibit public wagers or betting by minors, while others allow wagering up to a certain amount. In some states parimutuel betting on horse races at the tracks is legal; several states permit parimutuel betting on dog races and jai alai games, and most states operate or participate in daily and weekly lotteries. Though all of these state-sanctioned forms may conflict with public opinion on the moral and economic worth of gambling, all provide state and local governments with large revenues. The first legalized offtrack betting system (OTB) in the United States opened in New York City in 1971.

Nevada was the first state to sanction many types of gambling, with casinos operating slot machines, card games, and various games of chance. For many years, Nevada (joined in 1978 by Atlantic City, N.J.) was the only place in the United States where casinos were legal; now more than half the states have them. Some states, however, particularly those along the Mississippi River, restrict casino gambling to riverboats (often permanently docked). Following the federal Indian Gaming Regulatory Act of 1988, states were required to permit on reservations any type of gambling that was permitted off-reservation. Since that time, tribes throughout the country have opened legal gambling establishments, often greatly enhancing their economy and that of the area where they live, but reservation gambling still produces only a small percentage of all gambling revenues in the country. In the late 1990s, concerns over compulsive gambling (said to affect up to 3% of adult Americans) and the social effects of the mushrooming gambling economy-which had grown by 1,600% since the mid-1970s, with revenues of some $50 billion-brought increased government attention, but gambling revenues have continued to grow in importance to many state budgets.

In recent years, betting on sports such as baseball, basketball, boxing, and football, although illegal in nearly all states, has increased tremendously. Several countries in the Caribbean have established offshore sports betting and on-line casinos, patronized principally by Americans, despite the fact that Internet sports betting is illegal under the federal Wire Wager Act (1994) and all Internet gambling is illegal under many state laws. The World Trade Organization has ruled (2004) that the United States cannot apply its laws to foreign Internet gambling operations, but the United States has not complied with the ruling. Organized sport, although haunted by the memory of the Black Sox scandal of the 1919 World Series and college basketball scandals (1951, 1961), has done little to discourage betting, and instances of professional gamblers attempting to fix the outcome of sporting events still occur. It is also common for network television and newspapers not only to publicize odds but also to employ oddsmaking experts. For sporting events, gambling brokers (popularly, bookies) usually establish two sets of odds, one for each side of the bet, so that they profit no matter what the outcome of the contest.

Bibliography

See E. Bergler, The Psychology of Gambling (1985); F. and S. Barthelme, Double Down (1999); A. Martinez, 24/7 (1999).


History 1450-1789: Gambling
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From the early medieval period, various forms of gambling were popular at every level of society, although the types of games played, as well as the freedom to indulge in them, was dependent on an individual's position in the social hierarchy, and subject to sustained criticism from both church and state. Blood sports such as bearbaiting and cockfighting were popular among the peasantry, and regular contests, accompanied by heavy betting, drinking, and general revelry, were a traditional part of community life.

At the other end of the social spectrum, horse racing was a pastime confined to the upper classes. The ownership and racing of horses operated within a system of royal patronage, with successive monarchs—most notably, Charles II of England (ruled 1660–1685), "the father of the British turf"—organizing races and entering horses to compete in their name. Betting was a strictly private affair conducted among the aristocracy, who regarded participation in the sport as their exclusive right.

Lotteries began during the fifteenth century, and, although popular, were governed by politically expedient legislation that made participation irregular and often arbitrarily illegal. The most widespread form of gambling, however, was dice playing, which endured as the standard game of the entire medieval period. The most ancient and simple form of gambling, it was pursued assiduously by all sections of society—including the clergy—despite being subject to innumerable bans and prohibitions. The Saxons, Danes, and Romans all introduced their own varieties of games and their own styles of playing, although most games tended to fall into one of two types: either based on moving counters around boards (such as the Spanish alquerque, a game similar to checkers), or guessing games based on dice throws (such as hazard). Playing cards were introduced into Europe from the East toward the end of the thirteenth century, where they grew, over the next three hundred years, from an elite pastime into a leisure activity popular with every social class. Their route of entry is uncertain: some have suggested that Marco Polo brought them back from his travels in Cathay, while others believe they were introduced by Gypsies or returning Crusaders. Whatever the case, the first mentions of cards in Europe come from Italy in 1299, from Spain in 1371, from the Low Countries (modern Belgium, Luxembourg, and Netherlands) in 1379, and from Germany in 1380. By 1465, they were sufficiently well established in Britain to be subject to an import ban.

These early cards were crafted by hand on copper and ivory as well as card and wood, usually by professional painters who found patronage in aristocratic households. The first woodcuts on paper were, in fact, playing cards. (The term Kartenmahler or Kartenmacher, 'painter' or 'maker of cards', appears in German in 1402.) At first, their expense put cards out of reach of all but the wealthiest in society, with the result that widespread playing was initially restricted to the upper classes. Gambling was fashionable among this group, with high-stakes "betting orgies" frequently lasting for days and serving as a marker of status and prestige as much as a straightforward leisure pursuit. Cards and games were symbolic systems that represented the cultural climate and social order that surrounded them. Medieval card games such as brelan, pair, gleek, and primero were based on the principals of "melds" and "murnivals"—pairing and joining cards in ranks—reflecting the hierarchical social organization, represented as the "great chain of being" in the Middle Ages.

The development of the printing press in the fifteenth century was crucial to the history of cards, transforming them from the playthings of the aristocracy into mass-produced commodities enjoyed by all ranks of society. The presses also gave cards the name they still have today. The medieval Latin charta, 'sheet of paper', was taken as shorthand for the playing cards, which were, for a time, the presses' main industry. The word survives as the standard term for cards throughout Europe, variously as cart, carte, Karte, karta, and kartya.

Despite its widespread popularity, attempts were continually made by both church and state to limit or outlaw gambling. Although ostensibly designed to curb the excesses of the general population, most legislation targeted the poor and was uneven in its application. Initially, prohibitions imposed by the Catholic Church were pragmatic and aimed at steering the population away from sedentary activities that were seen to encourage idleness and toward more organized exertions, such as sports. Ultimately, the aim was to create a fit workforce that could be easily rallied into an indigenous army, a definite advantage in the violent climate of the Middle Ages. As such, various edicts attempted to regulate gambling according to social position. From the time of the Crusades, dicing by any soldier below the rank of knight was forbidden.

Cardplaying on workdays had been banned since 1397, and was further outlawed when a statute of Henry VIII (ruled 1509–1547) confined all gambling among the working population to Christmas, the assumption being that, as they would be celebrating anyway, its disruptive effects would be minimal. After the Reformation, attempts to outlaw gambling were dramatically increased by the Protestant bourgeoisie, who objected to it on the ideological grounds that it undermined the work ethic and squandered time and money.

Criticism continued throughout the Enlightenment, when the emphasis shifted to the disorderly effects of gambling within rational society—again, aimed primarily at the poor. Across the continent, legislation during the seventeenth and eighteenth centuries attempted to remove gambling from the mass of the population, primarily by fiscal means: imposing taxes on cards and dice, charging hefty entrance fees for horse races, and increasing the price of lottery tickets.

At the same time, many European countries introduced laws limiting public gambling to licensed premises, while restricting the granting of licenses to members of the nobility and upper classes. The result of such legislation was the stratification of public betting and the effective outlawing of gambling for the majority of the population, with the poor restricted to playing in illegal, unlicensed taverns, and the upper classes free to indulge in a wide variety of games with impunity.

Bibliography

Ashton, John. The History of Gambling in England. Montclair, N.J., 1969. Originally published in 1898.

Cotton, Charles. The Compleat Gamester. London, 1674.

Kavanagh, Thomas. Enlightenment and the Shadows of Chance: The Novel and the Culture of Gambling in Eighteenth-Century France. Baltimore and London, 1993.

Reith, Gerda. The Age of Chance: Gambling in Western Culture. London and New York, 1999.

—GERDA REITH

Law Dictionary: Gambling
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"a play for value against an uncertain event in the hope of gaining something for value," 283 N.Y.S. 2d 760, 761, whose elements include the "payment of a price for a chance to gain a prize." 310 P. 2d 834, 837. Gambling is illegal in most jurisdictions, although many states permit state-run lotteries. See aleatory [aleatory contract].

Wikipedia: Gambling
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Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Typically, the outcome of the wager is evident within a short period.

The term gaming[1] in this context typically refers to instances in which the activity has been specifically permitted by law. The two words are not mutually exclusive; i.e., a “gaming” company offers (legal) “gambling” activities to the public.[2] This distinction is not universally observed in the English-speaking world, however. For instance, in the UK, the regulator of gambling activities is called the Gambling Commission (not the Gaming Commission).[3]

Contents

Legal aspects

Both the Catholic and Jewish traditions traditionally set aside days for gambling,[4] although religious authorities generally disapprove of gambling to some extent. Gambling can have adverse social consequences. For these social and religious reasons, most legal jurisdictions limit gambling. Some Islamic nations prohibit gambling; most other countries regulate it.[5]

Many jurisdictions, local as well as national, either ban or heavily control (by licensing) gambling. Such regulation generally leads to gambling tourism and illegal gambling. In other terms gambling can be performed through materials which are given a value but isn’t real money. The involvement of governments, through regulation and taxation, has led to a close connection between many governments and gaming organizations, where legal gambling provides significant government revenue, such as in Monaco or Macau.

Under US federal law, gambling is legal in the United States, and states are free to regulate or prohibit the practice. Gambling has been legal in Nevada since 1931, forming the backbone of the state's economy, and the city of Las Vegas is perhaps the best known gambling destination in the world. In 1976, gambling was legalized in Atlantic City, New Jersey, and in 1990, it was legalized in Tunica, Mississippi; both of those cities have developed extensive casino and resort areas since then. Since a favorable U.S. Supreme Court decision in 1987, many Native American tribes have built their own casinos on tribal lands as a way to provide revenue for the tribe. Because the tribes are considered sovereign nations, they are often exempt from state laws restricting gambling, and are instead regulated under federal law. Additionally, almost all states have legalized gambling in the form of a state-run lottery and most states allow for limited non-profit organizations to host Bingo nights.

Because contracts of insurance have many features in common with wagers, insurance contracts are often distinguished under law as agreements in which either party has an interest in the "bet-upon" outcome beyond the specific financial terms. E.g.: a “bet” with an insurer on whether one's house will burn down is not gambling, but rather insurance — as the homeowner has an obvious interest in the continued existence of his/her home independent of the purely financial aspects of the "bet" (i.e., the insurance policy). Nonetheless, both insurance and gambling contracts are typically considered aleatory contracts under most legal systems, though they are subject to different types of regulation.

There is generally legislation requiring that the odds in gaming devices are statistically random, to prevent manufacturers from making some high-payoff results impossible. Since these high-payoffs have very low probability, a house bias can quite easily be missed unless checking the odds carefully.[6]

Types of gambling

Casino games

While almost any game can be played for money, and any game typically played for money can also be played just for fun, some games are generally offered in a casino setting.

Table games

The Caesars Palace main fountain. The statue is a copy of the ancient Winged Victory of Samothrace.
A pachinko parlor in Tokyo, Japan

Electronic gaming

Other gambling

Non-casino gambling games

Mahjong tiles.

Gambling games that take place outside of casinos include Bingo (as played in the US and UK), dead pool, lotteries, pull-tab games and scratchcards, and Mahjong.

Other non-casino gambling games include:

*Although coin tossing isn't usually played in a casino, it has been known to be an official gambling game in some Australian casinos[7]

Fixed-odds gambling

Fixed-odds gambling and Parimutuel betting frequently occur at many types of sporting events, and political elections. In addition many bookmakers offer fixed odds on a number of non-sports related outcomes, for example the direction and extent of movement of various financial indices, the winner of television competitions such as Big Brother, and election results.[8] Interactive prediction markets also offer trading on these outcomes, with "shares" of results trading on an open market.

Parimutuel betting

One of the most widespread forms of gambling involves betting on horse or greyhound racing. Wagering may take place through parimutuel pools, or bookmakers may take bets personally. Parimutuel wagers pay off at prices determined by support in the wagering pools, while bookmakers pay off either at the odds offered at the time of accepting the bet; or at the median odds offered by track bookmakers at the time the race started.

Sports betting

Betting on team sports has become an important service industry in many countries. For example, millions of Britons play the football pools every week. In addition to organized sports betting, both legal and illegal, there are many side-betting games played by casual groups of spectators, such as NCAA Basketball Tournament Bracket Pools, Super Bowl Squares, Fantasy Sports Leagues with monetary entry fees and winnings, and in-person spectator games like Moundball.

Arbitrage betting

Arbitrage betting is a theoretically risk-free betting system in which every outcome of an event is bet upon so that a known profit will be made by the bettor upon completion of the event, regardless of the outcome. Arbitrage betting is a combination of the ancient art of arbitrage trading and gambling, which has been made possible by the large numbers of bookmakers in the marketplace, creating occasional opportunities for arbitrage.

Other types of betting

One can also bet with another person that a statement is true or false, or that a specified event will happen (a "back bet") or will not happen (a "lay bet") within a specified time. This occurs in particular when two people have opposing but strongly-held views on truth or events. Not only do the parties hope to gain from the bet, they place the bet also to demonstrate their certainty about the issue. Some means of determining the issue at stake must exist. Sometimes the amount bet remains nominal, demonstrating the outcome as one of principle rather than of financial importance.

Betting exchanges allow consumers to both back and lay at odds of their choice. Similar in some ways to a stock exchange, a bettor may want to back a horse (hoping it will win) or lay a horse (hoping it will lose, effectively acting as bookmaker)

Staking systems

Many betting systems have been created in an attempt to "beat the bookie" but most still accept that no system can make an unprofitable bet profitable over time. Widely-used systems include:

  • Card counting - Many systems exist for Blackjack to keep track of the ratio of ten values to all others; when this ratio is high the player has an advantage and should increase the amount of their bets. Keeping track of cards dealt confers an advantage in other games as well.
  • Due-column betting – A variation on fixed profits betting in which the bettor sets a target profit and then calculates a bet size that will make this profit, adding any losses to the target.
  • Fixed profits – the stakes vary based on the odds to ensure the same profit from each winning selection.
  • Fixed stakes – a traditional system of staking the same amount on each selection.
  • Kelly – the optimum level to bet to maximize your future median bank level.
  • Martingale – A system based on staking enough each time to recover losses from previous bet(s) until one wins.
  • Pot odds vs. true odds - In poker, the ratio of the size of the current pot to the bet a player is considering is called "pot odds", which can be compared to the "true odds" of a player completing a winning hand from the cards remaining to be dealt to determine whether to make the bet.

Other uses of the term "gambling"

Many risk-return choices are sometimes referred to colloquially as "gambling." Whether this terminology is acceptable is a matter of debate, but generally the following activities are not considered gambling:

  • Emotional or physical risk-taking, where the risk-return ratio is not quantifiable (e.g., skydiving, campaigning for political office, asking someone for a date, etc.)
  • Insurance is a method of shifting risk from one party to another. Insurers use actuarial methods to calculate appropriate premiums, which could be considered similar to calculating gambling odds. However, insurers can set their premiums to obtain a long term positive expected return.
  • Situations where the possible return is a secondary reason for the wager/purchase (e.g. buying a raffle ticket to support a charitable cause)

Investments are also usually not considered gambling, although some investments can involve significant risk. Examples of investments include stocks, bonds and real estate. Starting a business can also be considered a form of investment. Investments are generally not considered gambling when they meet the following criteria:

  • Economic utility
  • Positive expected returns (at least in the long term)
  • Underlying value independent of the risk being undertaken

Some speculative investment activities are particularly risky, but are still usually considered separately from gambling:

  • Foreign currency exchange (forex) transactions
  • Prediction markets
  • Securities derivatives, such as options or futures, where the value of the derivative is dependent on the value of the underlying asset at a specific point in time (typically the derivative's associated expiration date)

Psychological aspects

Studies show that though many people participate in gambling as a form of recreation or even as a means to gain an income, gambling, like any behavior which involves variation in brain chemistry, can become a psychologically addictive and harmful behavior in some people. Reinforcement schedules may also make gamblers persist in gambling even after repeated losses.

The Russian writer Dostoevsky (himself a problem gambler) portrays in his novella The Gambler the psychological implications of gambling and how gambling can affect gamblers. He also associates gambling and the idea of "getting rich quick", suggesting that Russians may have a particular affinity for gambling. Dostoevsky shows the effect of betting money for the chance of gaining more in 19th-century Europe. The association between Russians and gambling has fed legends of the origins of Russian roulette.

By country

See also

References

External links


 
 

 

Copyrights:

Britannica Concise Encyclopedia. Britannica Concise Encyclopedia. © 2006 Encyclopædia Britannica, Inc. All rights reserved.  Read more
Insurance Dictionary. Dictionary of Insurance Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.  Read more
Encyclopedia of Judaism. The New Encyclopedia of Judaism. Copyright © 1989, 2002 by G.G. The Jerusalem Publishing House, Ltd. All rights reserved.  Read more
US History Encyclopedia. © 2006 through a partnership of Answers Corporation. All rights reserved.  Read more
Columbia Encyclopedia. The Columbia Electronic Encyclopedia, Sixth Edition Copyright © 2003, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/ Read more
History 1450-1789. Encyclopedia of the Early Modern World. Copyright © 2004 by The Gale Group, Inc. All rights reserved.  Read more
Law Dictionary. Law Dictionary. Copyright © 2003 by Barron's Educational Series, Inc. All rights reserved.  Read more
Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Gambling" Read more