Gambling is a form of entertainment in which people place bets, wagers, or odds on events, with the aim of winning money or other prizes. Most people who engage in gambling do so without any problems, but a small proportion develops gambling disorder. This can have substantial and negative personal, family, social, and financial impacts. It is important to understand what causes these problems so that effective strategies can be developed and implemented to reduce the prevalence of gambling disorders.

Research shows that the main reasons people gamble are based on basic human needs. They seek pleasure (which is induced by the same chemicals that are produced by drugs), and to meet other basic needs, such as social belonging, status, and self-esteem. For example, some people may use gambling as a way to escape from a stressful life, but this often makes their situation worse in the long run.

Several studies have examined the effects of gambling on society, but there are methodological challenges that need to be addressed. The most prominent problem is the difficulty of quantifying the impacts that cannot be expressed in monetary terms, such as a decrease in quality of life. To address this, some researchers have attempted to use “consumer surplus” as a proxy for these nonmonetary impacts. However, this is a problematic approach because it attempts to put a monetary value on something that cannot be measured in this way. Moreover, it fails to take into account the impact that gambling can have on a person’s social networks.