Gambling involves risking something of value on an activity that is primarily a matter of chance in the hope of realizing a profit. It has existed in every society since prerecorded history and is a part of many cultural customs and rites of passage. It has both positive and negative economic and social impacts. Benefits include entertainment, relaxation, and socialization, but problem gambling can cause significant personal, family, and financial consequences.

Most people gamble for fun, but a small group of individuals become too involved and continue to gamble despite adverse personal, family, and financial effects. They are known as pathological or compulsive gamblers and may have serious health, relationship, work, and financial problems (American Psychiatric Association 2000). Those who have trouble controlling their gambling often lie to others, including family members, about the extent of their involvement. They might also steal money or commit other illegal activities in order to finance their gambling habit. In addition, they often jeopardize or lose jobs, educational opportunities, and relationships.

Gambling has several benefits for the economy, including increased tourism and tax revenues. It can also impact the economy in other ways, such as through changes in economic conditions and infrastructure costs. However, most studies ignore the nonmonetary benefits of gambling and focus only on financial costs. Using an arbitrary monetary amount to quantify these benefits is problematic and misleading. The most important social impacts of gambling are invisible to the individual and occur at the societal level. These include general social cost/benefits, cost/benefits associated with problem gambling, and long-term costs/benefits.