Gambling involves risking something of value on an activity whose outcome is primarily a matter of chance in order to gain a prize. It has existed in virtually every society since prerecorded history, and it is incorporated into many local customs and rites of passage. Gambling has both positive and negative impacts on individuals, communities/society and the economy. These impacts can be categorized as financial, labor and health and well-being. The negative effects of gambling are generally observed at the personal level and affect gamblers directly, whereas the positive impacts at the interpersonal and community/society levels involve other people. The negative effects at the individual level include increased debt, financial stress and deteriorating health. These effects can also have long-term implications and create changes in the course of an individual’s life and even pass between generations.

People who are more vulnerable to developing a gambling problem include those with lower incomes, especially those who might be tempted to increase their wagers in the hope of recovering losses, as well as young people, particularly boys and men, who tend to gamble at a higher rate than women. Vulnerability can also be attributed to genetic factors such as an underactive brain reward system, which may predispose some to seek thrill-seeking activities and to have difficulty controlling impulses and weighing risks.

The economic impact of gambling can be seen in the employment and spending generated by the industry, both of which contribute to a given percentage of GDPs in countries around the world. Gambling is also a major source of tax revenues, which can be partially directed towards community/society benefits such as public services or infrastructure development projects.