Gambling involves placing something of value on an event that is dependent on chance. Whether it is betting on a football team to win a match, or buying a scratchcard, the gambler makes a choice of what they want to bet on and matches it with ‘odds’ set by the company, which determine how much money they could win.
For the most part, people gamble for fun and entertainment. For a small group of individuals, however, gambling is more than just a form of entertainment and it causes negative personal, family and financial impacts. Often, these effects are exacerbated by other problems such as mental illness, drug/alcohol abuse, or depression.
A common goal of studies on the impact of gambling is to find a methodology for measuring and accounting for social and personal costs and benefits. A conceptual model can help structure this process. The model separates impacts into three classes: financial, labor and health and well-being. These impacts manifest at the personal, interpersonal and community/society levels. Personal impacts are effects that influence the gamblers themselves, while external impacts influence those who are not the gamblers. These impacts can also be long-term and create change that persists over time. For example, gambling-related debt and financial strain can impact a person’s family and affect their ability to function, while the effects of problem gambling can escalate into bankruptcy and homelessness. In addition, the underlying mood disorders that contribute to problematic gambling can cause other issues such as family and relationship difficulties, unemployment, job loss, and depression.