Gambling Exists Outside Of Casinos

by | February 12, 2017

Hello. I wanted to make a post about gambling. Gambling is usually associated with casinos with games such as Texas Hold ‘Em Poker, Blackjack, slots and the like. However, there are other forms of gambling which include sports betting, e-sports betting (Counter Strike: Global Offensive), and the financial markets (e.g. stock markets).

If one looks even deeper, gambling exists in product purchases. If you purchase a meal for a high price and it turns out to be underwhelming for the price, then the meal is perceived as a loss. If a meal is purchased at a (low) price and the meal turns out to be really good for the price, the meal is perceived to be of great value. The example can be extended to other goods and services such as clothing, cosmetics, electronics, tutoring services, housing, etc.


Sports Betting

Sports betting is popular in places such as Canada, the United States and in Great Britain. Betting on sporting events is more accessible than going to the casinos since people can bet on the internet using their laptops or smartphones. People bet on outcomes such as which team/player wins, scores, time of scoring a goal. The more rare the outcome, the higher the payout. This is where odds come in. A 5000:1 odds means that there is a 0.02% of winning $5000 for each dollar in the bet.


Financial Markets

In the developed world, the financial markets do have an impact on everyday people and business people. The cost of food for example is dependent on economics, the financial markets and how businesses price and trade their goods and services. When it comes to the stock market, there is at least one winner and at least one loser. A popular strategy is to buy assets when the price is low and sell high at a later date.

The financial/stock markets get a bad reputation because of large losses. When there are large losses, there is at least one person who wins. Financial/stock markets are quite complicated. For example, financial stocks are dependent on supply and demand, government policies and society’s view on businesses and governments. Stock prices can depend on more than one factor and there are cases where current stock prices depend on past prices. One application of using stock prices is prediction. Predictions allow us to prepare for good events or bad events. When it comes to predictions and speculations it is very difficult as you have to predict whether a price goes up or down and the timing of an event (very difficult). (Since predictions are difficult to get correct, I do not think it is right to ridicule those who get predictions wrong.)

The featured image is from https://cdn.techinasia.com/wp-content/uploads/2016/06/dice-gambling-gamble-game-play.jpg.

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