Gambling

TABLE OF CONTENTS

 Introduction
 Prevalence of principal forms
 Chances, probabilities, and odds
 History
Gambling, the betting or staking of something of value, with consciousness of risk and
hope of gain, on the outcome of a game, a contest, or an uncertain event whose result
may be determined by chance or accident or have an unexpected result by reason of the
bettor’s miscalculation.

slot machineSlot machines, Las Vegas.Pcb21

The outcomes of gambling games may be determined by chance alone, as in the purely
random activity of a tossed pair of dice or of the ball on a roulette wheel, or by physical
skill, training, or prowess in athletic contests, or by a combination of strategy and
chance. The rules by which gambling games are played sometimes serve to confuse the
relationship between the components of the game, which depend on skill and chance,
so that some players may be able to manipulate the game to serve their own interests.
Thus, knowledge of the game is useful for playing poker or betting on horse racingbut is
of very little use for purchasing lottery tickets or playing slot machines.

A gambler may participate in the game itself while betting on its outcome (card
games, craps), or he may be prevented from any active participation in an event in which
he has a stake (professional athletics, lotteries). Some games are dull or nearly
meaningless without the accompanying betting activity and are rarely played unless
wagering occurs (coin tossing, poker, dice games, lotteries). In other games betting is
not intrinsically part of the game, and the association is merely conventional and not
necessary to the performance of the game itself (horse racing, football pools).
Commercial establishments such as casinos and racetracks may organize gambling
when a portion of the money wagered by patrons can be easily acquired by participation
as a favoured party in the game, by rental of space, or by withdrawing a portion of the
betting pool. Some activities of very large scale (horse racing, lotteries) usually require
commercial and professional organizations to present and maintain them efficiently.

Prevalence Of Principal Forms

A rough estimate of the amount of money legally wagered annually in the world is about
$10 trillion (illegal gambling may exceed even this figure). In terms of total turnover,
lotteries are the leading form of gambling worldwide. State-licensed or state-operated
lotteries expanded rapidly in Europe and the United States during the late 20th century
and are widely distributed throughout most of the world. Organized football (soccer)
pools can be found in nearly all European countries, several South American
countries, Australia, and a few African and Asian countries. Most of these countries also
offer either state-organized or state-licensed wagering on other sporting events.

Betting on horse racing is a leading form of gambling in English-speaking countries and

in France. It also exists in many other countries. Wherever horse racing is popular, it has
usually become a major business, with its own newspapers and other periodicals,
extensive statistical services, self-styled experts who sell advice on how to bet, and
sophisticated communication networks that furnish information to betting centres,
bookmakers and their employees, and workers involved with the care and breeding of
horses. The same is true, to a smaller extent, of dog racing. The emergence of satellite
broadcasting technology has led to the creation of so-called off-track betting facilities, in
which bettors watch live telecasts at locations away from the racetrack.

Casinos or gambling houses have existed at least since the 17th century. In the 20th
century they became commonplace and assumed almost a uniform character throughout
the world. In Europe and South America they are permitted at many or most holiday
resorts but not always in cities. In the United States casinos were for many years legal
only in Nevada and New Jersey and, by special license, in Puerto Rico, but most other
states now allow casino gambling, and betting facilities operate clandestinely throughout
the country, often through corruption of political authorities. Roulette is one of the
principal gambling games in casinos throughout France and Monaco and is popular
throughout the world. Craps is the principal dice game at most American casinos. Slot
and video poker machines are a mainstay of casinos in the United States and Europe
and also are found in thousands of private clubs, restaurants, and other establishments;
they are also common in Australia. Among the card games played at casinos, baccarat,
in its popular form chemin de fer, has remained a principal gambling game in Great
Britain and in the continental casinos most often patronized by the English at Deauville,
Biarritz, and the Riviera resorts. Faro, at one time the principal gambling game in the
United States, has become obsolete. Blackjack is the principal card game in American
casinos. The French card game trente et quarante (or rouge et noir) is played at Monte-
Carlo and a few other continental casinos. Many other games may also be found in
some casinos—for example, sic bo, fan-tan, and pai-gow poker in Asia and local games
such as boule, banca francesa, and kalooki in Europe.

At the start of the 21st century, poker exploded in popularity, principally through the high
visibility of poker tournaments broadcast on television and the proliferation of Internet
playing venues. Another growing form of Internet gambling is the so-called betting
exchanges—Internet Web sites on which players make wagers with one another, with
the Web site taking a small cut of each wager in exchange for organizing and handling
the transaction.

In a wide sense of the word, stock markets may also be considered a form of gambling,
albeit one in which skill and knowledge on the part of the bettors play a considerable
part. This also goes for insurance; paying the premium on one’s life insurance is, in
effect, a bet that one will die within a specified time. If one wins (dies), the win is paid out
to one’s relatives, and if one loses (survives the specified time), the wager (premium) is
kept by the insurance company, which acts as a bookmaker and sets the odds (payout
ratios) according to actuarial data. These two forms of gambling are considered
beneficial to society, the former acquiring venture capital and the latter spreading
statistical risks.

Chances, Probabilities, And Odds

Events or outcomes that are equally probable have an equal chance of occurring in each
instance. In games of pure chance, each instance is a completely independent one; that
is, each play has the same probability as each of the others of producing a given
outcome. Probability statements apply in practice to a long series of events but not to
individual ones. The law of large numbers is an expression of the fact that the ratios
predicted by probability statements are increasingly accurate as the number of events
increases, but the absolute number of outcomes of a particular type departs from
expectation with increasing frequency as the number of repetitions increases. It is the
ratios that are accurately predictable, not the individual events or precise totals.

The probability of a favourable outcome among all possibilities can be expressed:

probability (p) equals the total number of favourable outcomes (f) divided by the total
number of possibilities (t), or p = f/t. But this holds only in situations governed by chance
alone. In a game of tossing two dice, for example, the total number of possible outcomes
is 36 (each of six sides of one die combined with each of six sides of the other), and the
number of ways to make, say, a seven is six (made by throwing 1 and 6, 2 and 5, 3 and
4, 4 and 3, 5 and 2, or 6 and 1); therefore, the probability of throwing a seven is 6/36, or 1/6.

In most gambling games it is customary to express the idea of probability in terms of

odds against winning. This is simply the ratio of the unfavourable possibilities to the
favourable ones. Because the probability of throwing a seven is 1/6, on average one
throw in six would be favourable and five would not; the odds against throwing a seven
are therefore 5 to 1. The probability of getting heads in a toss of a coin is 1/2; the odds
are 1 to 1, called even. Care must be used in interpreting the phrase on average, which
applies most accurately to a large number of cases and is not useful in individual
instances. A common gamblers’ fallacy, called the doctrine of the maturity of the
chances (or the Monte-Carlo fallacy), falsely assumes that each play in a game of
chance is dependent on the others and that a series of outcomes of one sort should be
balanced in the short run by the other possibilities. A number of systems have been
invented by gamblers largely on the basis of this fallacy; casino operators are happy to
encourage the use of such systems and to exploit any gambler’s neglect of the strict
rules of probability and independent plays. An interesting example of a game where
each play is dependent on previous plays, however, is blackjack, where cards already
dealt from the dealing shoe affect the composition of the remaining cards; for example, if
all of the aces (worth 1 or 11 points) have been dealt, it is no longer possible to achieve
a “natural” (a 21 with two cards). This fact forms the basis for some systems where it is
possible to overcome the house advantage.

In some games an advantage may go to the dealer, the banker (the individual who
collects and redistributes the stakes), or some other participant. Therefore, not all
players have equal chances to win or equal payoffs. This inequality may be corrected by
rotating the players among the positions in the game. Commercial gambling operators,
however, usually make their profits by regularly occupying an advantaged position as
the dealer, or they may charge money for the opportunity to play or subtract a proportion
of money from the wagers on each play. In the dice game of craps—which is among the
major casino games offering the gambler the most favourable odds—the casino returns
to winners from 3/5 of 1 percent to 27 percent less than the fair odds, depending on the
type of bet made. Depending on the bet, the house advantage (“vigorish”) for roulette in
American casinos varies from about 5.26 to 7.89 percent, and in European casinos it
varies from 1.35 to 2.7 percent. The house must always win in the long run. Some
casinos also add rules that enhance their profits, especially rules that limit the amounts
that may be staked under certain circumstances.

Many gambling games include elements of physical skill or strategy as well as of

chance. The game of poker, like most other card games, is a mixture of chance and
strategy that also involves a considerable amount of psychology. Betting on horse racing
or athletic contests involves the assessment of a contestant’s physical capacity and the
use of other evaluative skills. In order to ensure that chance is allowed to play a major
role in determining the outcomes of such games, weights, handicaps, or other
correctives may be introduced in certain cases to give the contestants approximately
equal opportunities to win, and adjustments may be made in the payoffs so that the
probabilities of success and the magnitudes of the payoffs are put in inverse proportion
to each other. Pari-mutuel pools in horse-race betting, for example, reflect the chances
of various horses to win as anticipated by the players. The individual payoffs are large
for those bettors whose winning horses are backed by relatively few bettors and small if
the winners are backed by a relatively large proportion of the bettors; the more popular
the choice, the lower the individual payoff. The same holds true for betting with
bookmakers on athletic contests (illegal in most of the United States but legal in
England). Bookmakers ordinarily accept bets on the outcome of what is regarded as an
uneven match by requiring the side more likely to win to score more than a simple
majority of points; this procedure is known as setting a “point spread.” In a game of
American or Canadian football, for example, the more highly regarded team would have
to win by, say, more than 10 points to yield an even payoff to its backers.

Unhappily, these procedures for maintaining the influence of chance can be interfered
with; cheating is possible and reasonably easy in most gambling games. Much of the
stigma attached to gambling has resulted from the dishonesty of some of its promoters
and players, and a large proportion of modern gambling legislation is written to control
cheating. More laws have been oriented to efforts by governments to derive tax
revenues from gambling than to control cheating, however.

History
Gambling is one of mankind’s oldest activities, as evidenced by writings and equipment
found in tombs and other places. It was regulated, which as a rule meant severely
curtailed, in the laws of ancient China and Rome as well as in the Jewish Talmud and by
Islam and Buddhism, and in ancient Egypt inveterate gamblers could be sentenced to
forced labour in the quarries. The origin of gambling is considered to be divinatory: by
casting marked sticks and other objects and interpreting the outcome, man sought
knowledge of the future and the intentions of the gods. From this it was a very short step
to betting on the outcome of the throws. The Bible contains many references to the
casting of lots to divide property. One well-known instance is the casting of lots by
Roman guards (which in all likelihood meant that they threw knucklebones) for the
garment of Jesus during the Crucifixion. This is mentioned in all four of the Gospels and
has been used for centuries as a warning example by antigambling crusaders. However,
in ancient times casting lots was not considered to be gambling in the modern sense but
instead was connected with inevitable destiny, or fate. Anthropologists have also pointed
to the fact that gambling is more prevalent in societies where there is a widespread
belief in gods and spirits whose benevolence may be sought. The casting of lots, not
infrequently dice, has been used in many cultures to dispense justice and point out
criminals at trials—in Sweden as late as 1803. The Greek word for justice, dike, comes
from a word that means “to throw,” in the sense of throwing dice.

European history is riddled with edicts, decrees, and encyclicals banning and
condemning gambling, which indirectly testify to its popularity in all strata of society.
Organized gambling on a larger scale and sanctioned by governments and other
authorities in order to raise money began in the 15th century with lotteries—and
centuries earlier in China with keno. With the advent of legal gambling houses in the
17th century, mathematicians began to take a serious interest in games with
randomizing equipment (such as dice and cards), out of which grew the field
of probability theory.

Apart from forerunners in ancient Rome and Greece, organized sanctioned sports
betting dates back to the late 18th century. About that time there began a gradual, albeit
irregular, shift in the official attitude toward gambling, from considering it a sin to
considering it a vice and a human weakness and, finally, to seeing it as a mostly
harmless and even entertaining activity. Additionally, the Internet has made many forms
of gambling accessible on an unheard-of scale. By the beginning of the 21st century,
approximately four out of five people in Western nations gambled at least occasionally.
The swelling number of gamblers in the 20th century highlighted the personal and social
problem of pathological gambling, in which individuals are unable to control or limit their
gambling. During the 1980s and ’90s, pathological gambling was recognized by medical
authorities in several countries as a cognitive disorder that afflicts slightly more than 1
percent of the population, and various treatment and therapy programs were developed
to deal with the problem.
Dan Glimne
CITATION INFORMATION
ARTICLE TITLE: Gambling
WEBSITE NAME: Encyclopaedia Britannica
PUBLISHER: Encyclopaedia Britannica, Inc.
DATE PUBLISHED: 13 May 2014
URL: https://www.britannica.com/topic/gambling
ACCESS DATE: February 11, 2019