Gambling is the wagering of money Money is anything that is generally accepted as payment for goods and services and repayment of debts. The main functions of money are as a medium of exchange, a unit of account, and a store of value. In the past, money was almost always commodity money, money with intrinsic value from the commodity of which it is made . However, modern monetary or something of material value The economic value of a good or service has puzzled economists since the beginning of the discipline. First, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods which can be exchanged. From this analysis came the concepts value in use and value in exchange 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 Law is a system of rules, usually enforced through a set of institutions. It shapes politics, economics and society in numerous ways and serves as a primary social mediator in relations between people. Contract law regulates everything from buying a bus ticket to trading on derivatives markets. Property law defines rights and obligations related. 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]
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Legal aspects
Both the Catholic Catholic is an adjective derived from the Greek adjective καθολικός , meaning "universal". In the context of Christian ecclesiology, it has a rich history and several usages. For some, the term "Catholic Church" refers to the Church in full communion with the Bishop of Rome, including both the Western particular Church and Jewish A Jew (Hebrew: יְהוּדִי, Yehudi ; יְהוּדִים, Yehudim (pl.); Ladino: ג׳ודיו, Djudio (sg.); ג׳ודיוס, Djudios (pl.); Yiddish: יִיד, Yid (sg.); יִידן, Yidn (pl.)) is a member of the Jewish people, an ethnoreligious group originating in the Israelites or Hebrews of the Ancient Near East. The Jewish ethnicity, traditions traditionally set aside days for gambling,[4] although religious A religion is an organized approach to human spirituality which usually encompasses a set of narratives, symbols, beliefs and practices, often with a supernatural or transcendent quality, that give meaning to the practitioner's experiences of life through reference to a higher power, God or gods, or ultimate truth. It may be expressed through authorities generally disapprove of gambling to some extent. Gambling can have adverse social consequences In neoclassical economics social cost is defined as the sum of private and external costs. Neoclassical economic theorists ascribe individual decision-making to a calculation costs and benefits. Rational choice theory assumes that individuals only consider their own private costs when making decisions, not the costs that may be borne by others. For these social and religious reasons, most legal jurisdictions limit gambling. Some Islamic nations prohibit gambling; most other countries regulate it Gaming law can be described as the set of rules and regulations that apply to the gaming or gambling industry. Gaming law is not exactly a branch of law in the traditional sense but rather a transversal gathering of a range of legal topics related to gaming which encompasses matters normally included in various branches of law, including.[5]
Many jurisdictions, local as well as national, either ban or heavily control (by licensing) gambling. Such regulation generally leads to gambling tourism Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people who "travel to and stay in places outside their usual environment for more than twenty-four hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity 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 Monaco /ˈmɒnəkoʊ/ , officially the Principality of Monaco (French: Principauté de Monaco; Monégasque: Principatu de Múnegu; Italian: Principato di Monaco; Occitan: Principat de Mónegue), is a small sovereign city-state located in South Western Europe on the northern central coast of the Mediterranean Sea, having a land border on three or Macau Coordinates: 22°10′00″N 113°33′00″E / 22.166667°N 113.55°E The Macau Special Administrative Region, , commonly known as Macau or Macao (pronounced /məˈkaʊ/, traditional Chinese: 澳 .
Under US federal law The law of the United States was originally largely derived from the common law system of English law, which was in force at the time of the Revolutionary War. However, the supreme law of the land is the United States Constitution and, under the Constitution's Supremacy Clause, laws enacted by Congress and treaties to which the U.S. is a party, gambling is legal Gambling, often referred to as "gaming", had 2006 gross revenues of $90.93 billion, and thrives in the United States despite being restricted. Gross gambling revenue is the amount wagered minus the winnings returned to the players. It is a true measure of the economic value of gambling in the United States The United States of America is a federal constitutional republic comprising fifty states and a federal district. The country is situated mostly in central North America, where its forty-eight contiguous states and Washington, D.C., the capital district, lie between the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the, and states are free to regulate or prohibit the practice. Gambling has been legal in Nevada Nevada ( /nəˈvæːdə/ ) is a state located in the western region of the United States. The capital is Carson City, Nevada and the largest city is Las Vegas. The state's nickname is the "Silver State," due to the large number of silver deposits that were discovered and mined there. In 1864, Nevada became the 36th state to enter the since 1931, forming the backbone of the state's economy, and the city of Las Vegas The Las Vegas metropolitan area, also known as the Las Vegas-Paradise-Henderson Metro Area Metropolitan Statistical Area, is a metropolitan area in the southern part of the U.S. state of Nevada, consisting of Clark County. A central part of the metropolitan area is the Las Vegas Valley, a 600 sq mi basin in which is located the metropolitan area's is perhaps the best known gambling destination in the world. In 1976, gambling was legalized in Atlantic City Atlantic City is a city in Atlantic County, New Jersey, United States. Famous for its boardwalk, casino gambling, sandy beaches, shopping centers, spectacular view of the Atlantic Ocean, and as the inspiration for the board game Monopoly, Atlantic City is a resort community located on Absecon Island on the coast of the Atlantic Ocean. As of 2008,, New Jersey New Jersey ( /nuːˈdʒɝːzi/ ) is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north by New York, and to the east, the Hudson River, Sandy Hook Bay, Long Island and the Atlantic Ocean. Delaware borders New Jersey only on the southwestern side, and Pennsylvania lies to the west of New Jersey, and in 1990, it was legalized in Tunica, Mississippi Tunica is a town in Tunica County, Mississippi, United States, located near the Mississippi River. Historically part of an agricultural area, the town lies on the fringe of a growing gambling resort area, with major casinos attracting visitors from nearby Memphis, Tennessee and all over the Southeast; both of those cities have developed extensive casino and resort areas since then. Since a favorable U.S. Supreme Court The Supreme Court of the United States is the highest judicial body in the United States, and leads the federal judiciary. It consists of the Chief Justice of the United States and eight Associate Justices, who are nominated by the President and confirmed with the "advice and consent" of the Senate. Once appointed, Justices effectively decision in 1987, many Native American Native Americans in the United States are the indigenous peoples from the regions of North America now encompassed by the continental United States, including parts of Alaska and the island state of Hawaii. They comprise a large number of distinct tribes, states, and ethnic groups, many of which survive as intact political communities. There has 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 The Indian Gaming Regulatory Act is a 1988 United States federal law that establishes the jurisdictional framework that governs Indian gaming. There was no federal gaming structure before this act. The stated purposes of the act include providing a legislative basis for the operation/regulation of Indian gaming, protecting gaming as a means of under federal law. Additionally, almost all states have legalized gambling in the form of a state-run lottery A lottery is a form of gambling which involves the drawing of lots for a prize. Some governments outlaw it, while others endorse it to the extent of organizing a national lottery. It is common to find some degree of regulation of lottery by governments and most states allow for limited non-profit organizations to host Bingo nights.
Because contracts of insurance Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An 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 An aleatory contract is a contract in which the performance of one or both parties is contingent upon the occurrence of a particular event. The most common type of aleatory contract are insurance policies. Such insurance contracts may be a boon to one party but create a major loss for the other, as more in benefits may be paid out than actual 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 A numeric sequence is said to be statistically random when it contains no recognizable patterns or regularities; sequences such as the results of an ideal die roll, or the digits of π exhibit statistical randomness, to prevent manufacturers from making some high-payoff results impossible. Since these high-payoffs have very low probability Probability, or chance, is a way of expressing knowledge or belief that an event will occur or has occurred. In mathematics the concept has been given an exact meaning in probability theory, that is used extensively in such areas of study as mathematics, statistics, finance, gambling, science, and philosophy to draw conclusions about the, 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 A casino is, in the modern sense of the word, a facility that houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships and other tourist attractions. Some casinos are known for hosting live entertainment events, such as stand-up comedy, setting.
Table games
Main article: Table game The Caesars Palace main fountain. The statue is a copy of the ancient Winged Victory of Samothrace The Winged Victory of Samothrace, also called the Nike of Samothrace, is a third century B.C. marble sculpture of the Greek goddess Nike . Since 1884, it has been prominently displayed at the Louvre and is one of the most celebrated sculptures in the world. A pachinko Pachinko is a Japanese gaming device used for amusement and gambling. A pachinko machine resembles a vertical pinball machine, but with no flippers and a large number of relatively small balls. The player fires a ball up into the machine, controlling only its initial speed. The ball then cascades down through a dense forest of pins. In most cases, parlor in Tokyo Tokyo , officially Tokyo Metropolis (東京都, Tōkyō-to?), is one of the 47 prefectures of Japan and is located on the eastern side of the main island Honshū. The twenty-three special wards of Tokyo, each governed as a city, cover the area that was once the city of Tokyo in the eastern part of the prefecture, totalling over 8 million people, JapanElectronic gaming
- Pachinko Pachinko is a Japanese gaming device used for amusement and gambling. A pachinko machine resembles a vertical pinball machine, but with no flippers and a large number of relatively small balls. The player fires a ball up into the machine, controlling only its initial speed. The ball then cascades down through a dense forest of pins. In most cases,
- Slot machine A slot machine , fruit machine (British), or poker machine (Australian) is a casino gambling machine with three or more reels which spin when a button is pushed. Slots are also known as one-armed bandits because slot machines were originally operated by a lever on the side of the machine (the one arm) instead of a button on the front panel, and
- Video poker Video poker is a casino game based on five-card draw poker. It is played on a computerized console similar in size to a slot machine
Other gambling
- Bingo Bingo is a game of chance played with randomly drawn numbers which players match against numbers that have been pre-printed on 5x5 matrices. The matrices may be printed on paper, card stock or electronically represented and are referred to as "cards." Many versions conclude the game when the first person to achieve a specified pattern
- Keno Keno is a lottery-like or bingo-like gambling game often played at modern casinos, and is also offered as a game in some state lotteries. A traditional live casino keno game uses a circular glass enclosure called a "bubble" containing 80 ping pong-like balls which determine the balldraw result. Each ball is imprinted with a number 1
Non-casino gambling games
Mahjong Mahjong (also called mah-jongg by the American association, Mandarin: má jiàng, Cantonese: ma jeung, Japanese: mājan, Korean: majak, Vietnamese: mạt chược) is a game for four players that originated in China. It was called 麻雀 (má què, meaning sparrow) in ancient China, and the name is still in active use in Guangdong, Fujian, Hong tiles.Gambling games that take place outside of casinos include Bingo (as played in the US Bingo is a game of chance played with randomly drawn numbers which players match against numbers that have been pre-printed on 5x5 matrices. The matrices may be printed on paper, card stock or electronically represented and are referred to as "cards." Many versions conclude the game when the first person to achieve a specified pattern and UK), dead pool A dead pool, also known as a death pool, death watch or ghoul pool, is a game of prediction which involves guessing when someone will die, lotteries A lottery is a form of gambling which involves the drawing of lots for a prize. Some governments outlaw it, while others endorse it to the extent of organizing a national lottery. It is common to find some degree of regulation of lottery by governments, pull-tab A pull-tab is a gambling ticket that is used in a pull-tab game to raise money for government agencies or for licensed, charitable nonprofit organizations games and scratchcards A scratchcard is a small token, usually made of cardboard, where one or more areas contain concealed information: they are covered by a substance (usually latex) that cannot be seen through, but can be scratched off, and Mahjong Mahjong (also called mah-jongg by the American association, Mandarin: má jiàng, Cantonese: ma jeung, Japanese: mājan, Korean: majak, Vietnamese: mạt chược) is a game for four players that originated in China. It was called 麻雀 (má què, meaning sparrow) in ancient China, and the name is still in active use in Guangdong, Fujian, Hong.
Other non-casino gambling games include:
- Card games A card game is any game using playing cards as the primary things with which the game is played, be they traditional or game-specific. Countless card games exist, including families of related games . Some games have formally standardized rules, while rules for others can vary by region, culture, and person, such as Liar's poker, Bridge Contract bridge, usually known simply as bridge, is a trick-taking card game of skill and chance . It is played by four players who form two partnerships; the partners sit opposite each other at a table. The game consists of the auction (often called bidding) and play, after which the hand is scored, Basset, Lansquenet Lansquenet (derived from the German Landsknecht , applied to a mercenary soldier) is a card game, Piquet Piquet is one of the oldest card games still being played. It originated over 500 years ago, with a written reference dating back to at least 1534, in Gargantua and Pantagruel by Rabelais. Legend attributes the game's creation to Stephen de Vignoles, a knight in the reign of Charles VII. Until the early 20th century, Piquet was perhaps the most, Put A put option is a financial contract between two parties, the seller (writer) and the buyer of the option. The buyer acquires a short position offering the right, but not obligation, to sell the underlying instrument at an agreed-upon price (the strike price). If the buyer exercises the right granted by the option, the seller has the obligation to, Teen patti
- Carnival Games such as The Razzle Razzle is a game sometimes presented on carnival midways and historically, in the casinos of Havana, Cuba. The game is also known as Razzle-Dazzle. This generic name is seldom known to players, as it is generally presented as Football, Ten Points Win, Baseball, Mo-Co, Indian Poker, Cajun Bingo or other name selected to generate interest for the or Hanky Pank
- Coin-tossing A coin is a piece of hard material, usually metal or a metallic material, usually in the shape of a disc, and most often issued by a government. Coins are used as a form of money in transactions of various kinds, from the everyday circulation coins to the storage of vast numbers of bullion coins. In the present day, coins and banknotes make up the games such as Head and Tail, Two-up*
- Confidence tricks such as Three-card Monte or the Shell game
- Dice-based games, such as Backgammon, Liar's dice, Passe-dix, Hazard, Threes, Pig, or Mexico
*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
Tokyo Racecourse in Tokyo, Japan. Main article: Parimutuel bettingOne 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
Main article: sports bettingBetting 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
Main article: arbitrage bettingArbitrage 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 better may want to back a horse (hoping it will win) or lay a horse (hoping it will lose, effectively acting as bookmaker)
Staking systems
Main article: betting strategyMany 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
Main article: Problem gamblingStudies 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
- Gambling in Japan
- Gambling in Macau
- Gambling in South Africa
- Gambling in the United Kingdom
- Gambling in the United States
See also
- Casino
- Comps (casino)
- Gambler's conceit
- Gambler's fallacy
- Gambler's ruin
- Gaming mathematics
- Mobile gambling
- Online gambling
References
- ^ United Kingdom Office of Public Sector Information: Definition as Gaming
- ^ Gambling Law US
- ^ UK Gambling Commission
- ^ Barlow, Rich (2007-12-02). "Gambling had role in religious history". The Boston Globe. http://www.boston.com/news/local/articles/2007/12/01/gambling_had_role_in_religious_history/.
- ^ International Association of Gaming Regulators: Members
- ^ Nevada State Gaming Control Board: Technical Standards (Adopted)
- ^ Sky City - SkyCity Casino - Table Games - Two Up
- ^ ABC.net: US election betting backs Bush
External links
| Look up gambling in Wiktionary, the free dictionary. |
| Wikiquote has a collection of quotations related to: Gambling |
| Wikimedia Commons has media related to: Gambling |
- Gambling at the Yahoo! Directory
- Gambling sites at the Open Directory Project
- Gaming Studies Research Center - at University of Nevada, Las Vegas
- Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno
Categories: Gambling
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The Associated Press
In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which aimed to curb online gambling by prohibiting financial institutions from ...
Poker Players Lobby Lawmakers To License Online Games Wall Street Journal
US Online Gambling Bill Gains More Support from Representatives OnlineCasino.org
Online poker advocates lobby Congress to lift federal ban MiamiHerald.com
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In order to make quick bucks teenagers are trying their luck into the field of gambling Ontario s latest study has postulated the growing craze for gambling among teens and the results were
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With no competition, Macau's new leader was appointed Sunday while the world's . gambling. capital and Chinese enclave struggles with an industry slump brought on by the economic crisis and...
Q. If I win over $3000 gambling, but bet $4000 and loose $1000 for the year do I have to report anything on my taxes? It wasn't 1 big win. Most wins and losses were widely spread out. Do I need to send proof that I lost more than I won with my taxes? All my wins were under the "tax radar".
Asked by seadog - Tue Feb 12 16:25:08 2008 - - 5 Answers - 0 Comments
A. Legally you have to claim your winnings, whether it was one big win or several small ones. You can only deduct losses up to the amount of your winnings, and then only if you itemize and if you have the required documentation.
Answered by Judy - Tue Feb 12 16:35:59 2008
