What is Gambling?
Gambling means to participate in a game in which you risk money or something of value to win money or a prize. Gambling depends on three elements.
- Consideration: The amount used for gambling.
- Risk: The chance or probability of winning or losing.
- Prize: The money or prize for which the gambling is done.
The below explanation, with the help of an example, can help the illustration.
Example: Mr A invested Rupees 2000 in a lottery worth 20000000 Rupees. Total of 100 lottery tickets was in print.
Here Consideration is Rupees 2000, Risk or chance of winning the lottery is 1% (100 tickets printed), and the prize is Rupees 20000000.
Forms of Gambling:
There are many forms and types of gambling. Gambling can be classified into chance based and skill based gambling.
- Chance Based Gambling: Here, the result is entirely dependent on chance and random events. The players cannot influence the result anyhow. It includes Casino games and Lottery products.
- Casino Games: Some examples of chance based casino games are
- Slot Machines
- Lottery Products: Some examples of chance based lottery products are
- Scratch and Win Tickets
- Lotto Max
- 50/50 Raffles
- Skill Based Gambling: Here, players can use techniques and strategies to win. It depends on the skills, experience and knowledge the player possesses. Somenexamples of skill based gambling are
- Horse Race Betting
- Sports Betting
- Shooting Games
These are some forms of gambling. Each type is different from another. One has to possess proper knowledge to indulge into gambling.
Outcomes of Gambling:
There can only be three outcomes of gambling.
- You Win Nothing: It happens when you lose all the money and win nothing in return. Ex. Investing Rupees 500 in a lottery and not winning the prize money (When you get no prize money)
- You Win Less: It happens when you lose all your money and win something less in return. Ex. Playing slot machine games worth Rupees 1000 and winning prize worth Rupees 200 (consideration amount is greater than the prize money)
- You Win More: It happens when you lose some money and win something more in return. Ex. Horse betting worth rupees 5000 and winning prize money worth Rupees 100000 (Prize money is greater than the consideration amount)
These are the 3 outcomes of gambling. You can win through your luck, chance, knowledge or experience.