Gambling involves betting something of value on an activity that is primarily chance in the hope of making a profit. Gambling is an important part of the economy worldwide and contributes to the overall financial stability of many countries. Although gambling has many benefits, it also comes with several negative effects. One of the most serious problems associated with gambling is addiction, which can lead to severe social, health and financial consequences for gamblers and their loved ones.

This article will review the impact of gambling by constructing a conceptual model for costs and benefits. The model defines the impacts at personal, interpersonal and society/community levels. Impacts can be classified into three classes: financial, labor and health/well-being. The financial impacts include gambling revenues, tourism and other industries’ benefits and infrastructure cost/value changes. Labor impacts include gambling-related work loss, absenteeism and impaired performance. The health/well-being impacts are related to gambling’s impact on gamblers’ physical and mental well-being.

The main advantages of gambling are that it provides opportunities for socialization and can be a fun and rewarding hobby. In addition, it can help with skill development and improve pattern recognition, critical thinking and math skills. Moreover, games like blackjack and poker encourage players to devise tactics and read body language.

Gambling is also a popular pastime among people who enjoy a good game and the chance to win some cash. However, it is important to understand that gambling is not risk-free and some individuals are more vulnerable to develop problem gambling. This includes those who are more likely to: (1) lose money on a bet (e.g., by “chasing” their losses); (2) tell lies to family members, therapists or others about how much they gamble; (3) spend more time on gambling than they plan; and (4) jeopardize their relationships, careers, education, or health to gamble (American Psychiatric Association 2000).