Flashcards in Definition Deck (10):
What is the definition of gambling?
wagering money or something of material value on an event with an uncertain outcome in hope of winning additional money and/or material goods.
- the outcome is typically evident in a short period of time
- usually has a negative mathematical expectation.
Who are the primary recipients of gambling revenue in Canada?
Provincial governments are the primary recipients of gambling revenue
- Regulator is the Operator
How are casinos operated in the US compared to Canada?
US - Casinos are privately owned by companies, government taxes those companies.
- Canada - provincial governments are primary recipients of gambling revenue.
What are some exclusions to gambling? (what is not gambling)
- excludes emotional or physical risk-taking where money or material goods are not being risked
- long-term investment with positive expected returns and economic utility
- starting new business
- insurance (protects against loss rather than to collect or win)
- sometimes excludes charity tickets as primary reason to purchase is supporting a worthy cause (still require gambling licence in Canada)
- sometimes excludes stock market products with high risk and negative mathematical expectation (penny stocks)
- differs from gaming
What is the difference between Gaming and Gambling?
- Gaming is an industry euphemism for gambling.
- fundamentally different. In gaming there is no money at risk, where gambling there is money involved. Both will involve risk
What is the difference between gambling in capitalist society and pre-capitalist society?
- pre-capitalist societies, such as Bali, China, Africa, and Australian Aboriginal communities, gambling traditionally has been primarily for socially defined ends, often organized around religious or communal activities with little direct economic significance
- capitalist societies, gambling activity takes place in a way that allows an individual or group to profit from the transaction.
On which 4 dimensions does gambling vary?
- What is being risked
- How much is being risked
- Predictability of the event
- Expected return
What is the payback rate of lottery tickets?
What is the payback rate of roulette?