Gambling involves the process of staking something of value in order to win a prize. The value of the prize may be determined by chance. Some consumers gamble to escape problems in their lives. Others are simply driven by a desire to win money.
Gambling can have positive and negative impacts on society. Generally, gambling impacts can be seen at the individual, interpersonal, and community/society levels. However, this is often a challenge to measure.
Several impact studies on gambling have been conducted. They provide a detailed look at the various economic, social, and health impacts of gambling. Although the research has been largely focused on the costs of gambling, less work has been done on the positive impacts of gambling.
Using a conceptual model, researchers have analyzed the varying types of impacts. These impacts have been classified into three classes, according to their severity.
The first class is known as the monetary or financial impacts. This includes gambling revenues, changes in financial situations, and labor impacts. It also includes the effects of casinos, tourism, and other forms of gambling.
Another type of economic impact is the consumer surplus. This is the difference between what people pay for a product or service and what they would pay if they did not have to gamble.
Despite the fact that some studies have tried to quantify the positive benefits of gambling by measuring the consumer surplus, most studies have not considered these costs.