GAMBLING AND ITS SUBSQUENT EFFECTS ON THE

ECONOMY

Gambling

Meaning of Gambling:
Gambling increases aggregate demand for goods and services in the economy. In 1996,
Americans spent one in every ten dollars on commercial gaming. This money goes directly
toward stimulating the economy. This expenditure on gambling can also be magnified when
considering the multiplier effect.gambling involves a game of chance. Generally, the odds are
stacked against gamblers. When gambling, the probability of losing an investment is usually
higher than the probability of winning more than the investment. In comparison to speculation,
gambling has a higher risk of losing the investment.
Common gambling activities like organized betting are restricted except for selective categories
including lotteries and horse racing. In the 21st century, more people have started making cash
bets upon prohibited betting and gambling activities in India.

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For example, a gambler opts to play a game of American roulette instead of speculating in the
stock market. The gambler only places their bets on single numbers. However, the payout is
only 35 to 1, while the odds against them winning are 37 to 1. So if a gambler bets $2 on a
single number, their potential gambling income is $70 (35*$2) but the odds of them winning is
approximately 1/37.
Gambling is the wagering something of value on an event with an uncertain outcome with the
intent of winning something else of value. Gambling thus requires three elements to be
present: consideration (an amount wagered), risk , and a prize. The outcome of the wager is
often immediate, such as a single roll of dice, a spin of a roulette wheel, or a horse crossing the
finish line, but longer time frames are also common, allowing wagers on the outcome of a
future sports contest or even an entire sports season.

Introduction :
Gambling is a historically and culturally prevalent pastime that is broadly accepted in many
cultures and societies in its various forms. Evidence suggests that most people who engage in
gambling activities do so at low levels and experience no negative consequences of their
behavior.1 However, it is increasingly recognized by communities, industry groups, gambling
regulators, and politicians that there are serious harms associated with gambling for at least a
subset of individuals, and all of these groups have a responsibility to undertake efforts to
address these issues2 Yet, despite decades of efforts to develop and implement harm-
minimization gambling interventions, few have been effective.3 Gambling-related problems at
various levels are relatively widespread in the population, including those experiences related
to another person’s gambling. For example, Australian research indicates that up to six people
are affected by every problem gambler, and gambling problems are a social issue on a similar
order of magnitude to major depressive disorder and alcohol misuse and dependence.4 Even
those who experience less serious impairments stand to benefit from initiatives to minimize
gambling-related harms, as would the many people affected by another person’s gambling.5
Consideration of a new approach to reframe our thinking and look more broadly across
academic disciplines to address gambling harms would be beneficial for policymakers,
researchers, stakeholders, and gamblers themselves.
The current article proposes that the field of behavioral economics offers a valuable perspective
for the gambling and broader addiction fields. This article focuses on understanding the
heuristics and biases that drive behavior with an aim of guiding the development of effective
interventions to minimize gambling-related harms. We conclude that greater cooperation
between stakeholders to conduct real-world trials of policies that preserve autonomy, but are
persuasive and make it easier for individuals to enact behaviors that would minimize gambling-
related harms, would make a significant impact on the serious public health issue of problem
gambling.

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Brief Introduction to Gambling

Gambling is an instance of risky decision making whereby money is staked on the uncertain
prospect of a larger outcome. Given this strong element of risk, gambling has long been a topic
of interest for economists. “Gambling” tasks have often been used to simulate risk-taking
scenarios to study human behavior and decision making in psychology and economics.6 The
harm associated with gambling behavior is thought to lie along a spectrum of risk, with such
risks including increased investment of time and money spent gambling, a preoccupation with
gambling and gambling losses, and continued gambling despite negative personal, financial, and
familial outcomes.Problem gambling is an important public health issue. The costs to society
have been estimated to be as much as AUD $7 billion in the Australian state of Victoria alone,
and the UK government is estimated to spend £1.2 billion per annum on gambling-related social
costs,8 including substantial costs related to low and moderate levels of gambling problems.
From a purely economic perspective, these figures suggest that investment in efforts to develop
and evaluate effective prevention and treatment strategies would be highly beneficial for
individuals, families, and society.

Gambling in microeconomics :
Gambling is an instance of risky decision making whereby money is staked on the uncertain
prospect of a larger outcome. Given this strong element of risk, gambling has long been a topic
of interest for economists.

How does gambling affect the economy? :

The most prominent economic effect of casino gambling is employment. Many families rely on
wages and other benefits from the casino gambling industry. The gambling industry also
contributes to the per capita income, which is beneficial to the national economy.

Here are some of the economic effects of casino gambling :

Employment, Wages and Per Capita Income :-The most prominent economic effect of casino
gambling is employment. The gambling industry employed 1.8 million employees in 2018.
Casinos employ many workers in different sections, from security, attendants, accountants, and
managers. Low-level casino jobs do not require a lot of skill, but they can earn good wages and
provide for their families.Many families rely on wages and other benefits from the casino

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gambling industry. The gambling industry also contributes to the per capita income, which is
beneficial to the national economy.
Government Tax Revenues :-The casino gambling industry has proven to be one of the most
significant sources of income through taxes for local and state governments. The industry
generated $9.7 billion in 2018 for local and state governments.More than half of the states
have continually reported an annual increase in casino gambling revenue. The continuous
increment in revenue shows that the gaming industry is a robust economic sector that supports
the government and local economies throughout the country.
Spillover effects:-Las Vegas is a perfect example of the spillover economic effects of
casinogambling. Gambling casinos are good for local businesses, particularly in the hospitality
industry.Gambling casinos attract visitors from local or far clientele. The visitors often consume
other services aside from gambling, including restaurants, shops, accommodation, night clubs,
and other forms of entertainment. Casinos have become part of tourist attractions, and they
boost local businesses through spill-over effects.
Consumer benefits :-State and local governments use gambling casino revenue to support
various programs, from public education to infrastructure construction. In most states,
gambling revenue is often dedicated to public education.States and local governments often
justify gambling casinos as they are a source of tax that funds some local development projects.
Legislators support the construction of new casinos as they are sources of millions of taxes,
which will benefit the local consumers in different ways.
Commercial activity :-Gambling is also a major international commercial activity, with the legal
gambling market totaling an estimated $335 billion in 2009. In other forms, gambling can be
conducted with materials that have a value, but are not real money. For example, players of
marbles games might wager marbles, and likewise games of Pogs or Magic: The Gathering can
be played with the collectible game pieces as stakes, resulting in a meta-game regarding the
value of a player’s collection of pieces.

History :
Gambling dates back to the Paleolithic period, before written history. In Mesopotamia the
earliest six-sided dice date to about 3000 BC. However, they were based on astragali dating
back thousands of years earlier. In China, gambling houses were widespread in the first
millennium BC, and betting on fighting animals was common. Lotto games and dominoes
appeared in China as early as the 10 thcentury.Playing cards appeared in the 9th century AD in
China. Records trace gambling in Japan back at least as far as the 14 thcentury.Poker, the most
popular U.S. card game associated with gambling, derives from the Persian game As-Nas, dating

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back to the 17thcentury.The first known casino, the Ridotto, started operating in 1638 in Venice,
Italy.
Great Britain
Gambling has been a main recreational activity in Great Britain for centuries.Horseracing has
been a favorite theme for over three centuries.It has been heavily regulated. Historically much
of the opposition comes from evangelical Protestants, and from social reformers.
United States
Gambling has been a popular activity in the United States for centuries. It has also been
suppressed by law in many areas for almost as long. By the early 20 th century, gambling was
almost uniformly outlawed throughout the U.S. and thus became a largely illegal activity,
helping to spur the growth of the mafia and other criminal organizations. The late 20 th century
saw a softening in attitudes towards gambling and a relaxation of laws against it.

Regulation :
Many jurisdictions, local as well as national, either ban gambling or heavily control it by
licensing the vendors. Such regulation generally leads to gambling tourism and illegal gambling
in the areas where it is not allowed. The involvement of governments, through regulation and
taxation, has led to a close connection between many governments and gaming organizations,
where legal gambling provides significant government revenue, such as in Monaco and Macau,
China.
There is generally legislation requiring that gaming devices be statistically random, to prevent
manufacturers from making some high-payoff results impossible. Since these high payoffs have
very low probability, a house bias can quite easily be missed unless the devices are checked
carefully.Most jurisdictions that allow gambling require participants to be above a certain age.
In some jurisdictions, the gambling age differs depending on the type of gambling. For example,
in many American states one must be over 21 to enter a casino, but may buy a lottery ticket
after turning 18.

Insurance
Because contracts of insurance have many features in common with wagers, insurance
contracts are often distinguished in law as agreements in which either party has an interest in
the “bet-upon” outcome beyond the specific financial terms. E.g.: a “bet” with an insurer on
whether one’s house will burn down is not gambling, but rather insurance – as the homeowner

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has an obvious interest in the continued existence of his/her home independent of the purely
financial aspects of the “bet” (i.e. the insurance policy). Nonetheless, both insurance and
gambling contracts are typically considered aleatory contracts under most legal systems,
though they are subject to different types of regulation.

Asset recovery
Under common law, particularly English Law a gambling contract may not give a casino bona
fide purchaser status, permitting the recovery of stolen funds in some situations. In Lipkin
Gorman v Karpnale Ltd, where a solicitor used stolen funds to gamble at a casino, the House of
Lords overruled the High Court’s previous verdict, adjudicating that the casino return the stolen
funds less those subject to any change of position defence. U.S. Law precedents are somewhat
similar. For case law on recovery of gambling losses where the loser had stolen the funds see.
An interesting question is what happens when the person trying to make recovery is the
gambler’s spouse, and the money or property lost was either the spouse’s, or was community
property. This was a minor plot point in a Perry Mason novel, The Case of the Singing Skirt, and
it cites an actual case Novo v. Hotel Del Rio.

Religious views :
1)Hinduism – text Arthashastra recommends taxation and control of gambling.
2)Judaism -Ancient Jewish authorities frowned on gambling, even disqualifying professional
gamblers from testifying in court.
3)Christianity -
Catholicism :
The Catholic Church holds the position that there is no moral impediment to gambling, so long
as it is fair, all bettors have a reasonable chance of winning, there is no fraud involved, and the
parties involved do not have actual knowledge of the outcome of the betand as long as the
following conditions are met: the gambler can afford to lose the bet, and stops when the limit is
reached, and the motivation is entertainment and not personal gain leading to the or making a
living.In general, Catholic bishops have opposed casino gambling on the grounds that it too
often tempts people into problem gambling or addiction, and has particularly negative effects
on poor people; they sometimes also cite secondary effects such as increases in loan sharking,
prostitution, corruption, and general public immorality. Some parish pastors have also opposed
casinos for the additional reason that they would take customers away from church bingo and
annual festivals where games such as blackjack, roulette, craps, and poker are used for
fundraising.St. Thomas Aquinas wrote that gambling should be especially forbidden where the

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losing bettor is underage or otherwise not able to consent to the transaction. Gambling has
often been seen as having social consequences, as satirized by Balzac. For these social and
religious reasons, most legal jurisdictions limit gambling, as advocated by Pascal.
Protestantism :
Gambling views among Protestants vary, with some either discouraging or forbidding their

members from participation in gambling. Methodists, in accordance with the doctrine of

outward holiness, oppose gambling which they believe is a sin that feeds on greed; examples
are the United Methodist Church, the Free Methodist Church, the Evangelical Wesleyan
Churchthe Salvation Armyand the Church of the Nazarene.Other Protestants that oppose
gambling include many Mennonites, Quakers,the Christian Reformed Church in North America,
the Church of the Lutheran Confession, the Southern Baptist Convention, the Assemblies of
Goand the Seventh-day Adventist Church. Other Christian denominations Other churches that
oppose gambling include the Jehovah's Witnesses, The Church of Jesus Christ of Latter-day
Saintsthe Iglesiani Cristo, and the Members Church of God Internationa

Types :

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Casino games
While almost any game can be played for money, and any game typically played for money can
also be played just for fun, some games are generally offered in a casino setting.
Table games

Non-casino games
Gambling games that take place outside of casinos include bingo (as played in the US and UK),
dead pool, lotteries, pull-tab games and scratchcards, and Mahjong.

Other non-casino gambling games include:

Non-casino card games, including historical games like Basset, Ecarté, Lansquenet and Put.
Technically, a gambling card game is one in which the cards are not actually played but simply
bet on.Carnival Games such as The Razzle or Hanky PankCoin-tossing games such as Head and
Tail, Two-upConfidence tricks such as Three-card Monte or the Shell gameDice-based games,
such as Backgammon, Liar’s dice, Passe-dix, Hazard, Threes, Pig, or Mexico.

Fixed-odds betting
Fixed-odds betting and Parimutuel betting frequently occur at many types of sporting events,
and political elections. In addition many bookmakers offer fixed odds on a number of non-
sports related outcomes, for example the direction and extent of movement of various financial
indices, the winner of television competitions such as Big Brother, and election results.[51]
Interactive prediction markets also offer trading on these outcomes, with “shares” of results
trading on an open market.

Parimutuel betting
One of the most widespread forms of gambling involves betting on horse or greyhound racing.
Wagering may take place through parimutuel pools, or bookmakers may take bets personally.
Parimutuel wagers pay off at prices determined by support in the wagering pools, while

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bookmakers pay off either at the odds offered at the time of accepting the bet; or at the
median odds offered by track bookmakers at the time the race started.

Sports betting
Betting on team sports has become an important service industry in many countries. For
example, millions of people play the football pools every week in the United Kingdom. In
addition to organized sports betting, both legal and illegal, there are many side-betting games
played by casual groups of spectators, such as NCAA Basketball Tournament Bracket Pools,
Super Bowl Squares, Fantasy Sports Leagues with monetary entry fees and winnings, and in-
person spectator games like Moundball.

Virtual sports
Based on Sports Betting, Virtual Sports are fantasy and never played sports events made by
software that can be played every time without wondering about external things like weather
conditions.

Other types of betting

One can also bet with another person that a statement is true or false, or that a specified event
will happen or will not happen within a specified time. This occurs in particular when two
people have opposing but strongly held views on truth or events. Not only do the parties hope
to gain from the bet, they place the bet also to demonstrate their certainty about the issue.
Some means of determining the issue at stake must exist. Sometimes the amount bet remains
nominal, demonstrating the outcome as one of principle rather than of financial importance.
Betting exchanges allow consumers to both back and lay at odds of their choice. Similar in some
ways to a stock exchange, a bettor may want to back a horse.
Spread betting allows gamblers to wagering on the outcome of an event where the pay-off is
based on the accuracy of the wager, rather than a simple “win or lose” outcome. For example, a
wager can be based on the when a point is scored in the game in minutes and each minute
away from the prediction increases or reduces the payout.

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Electronic game

Staking systems :
Many betting systems have been created in an attempt to “beat the house” but no system can
make a mathematically unprofitable bet in terms of expected value profitable over time. Widely
used systems include:
Card counting – Many systems exist for blackjack to keep track of the ratio of ten values to all
others; when this ratio is high the player has an advantage and should increase the amount of
their bets. Keeping track of cards dealt confers an advantage in other games as well.

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Due-column betting – A variation on fixed profits betting in which the bettor sets a target profit
and then calculates a bet size that will make this profit, adding any losses to the target.
Fixed profits – the stakes vary based on the odds to ensure the same profit from each winning
selection.
Fixed stakes – a traditional system of staking the same amount on each selection.
Kelly – the optimum level to bet to maximize your future median bank level.
Martingale – A system based on staking enough each time to recover losses from previous bet
until one wins.

Other uses of the term :

Many risk-return choices are sometimes referred to colloquially as whether this terminology is
acceptable is a matter of debate:Emotional or physical risk-taking, where the risk-return ratio is
not quantifiable (e.g., skydiving, campaigning for political office, asking someone for a date,
etc.)Insurance is a method of shifting risk from one party to another. Insurers use actuarial
methods to calculate appropriate premiums, which is similar to calculating gambling odds.
Insurers set their premiums to obtain a long term positive expected return in the same manner
that professional gamblers select which bets to make. While insurance is sometimes
distinguished from gambling by the requirement of an insurable interest, the equivalent in
gambling is simply betting against one’s own best interests (e.g., a sports coach betting against
his own team to mitigate the financial repercussions of a losing season).Situations where the
possible return is of secondary importance to the wager/purchase .Investments are also usually
not considered gambling, although some investments can involve significant risk. Examples of
investments include stocks, bonds and real estate. Starting a business can also be considered a
form of investment. Investments are generally not considered gambling when they meet the
following criteria:

Economic utility :
Positive expected returns Underlying value independent of the risk being undertakenSome
speculative investment activities are particularly risky, but are sometimes perceived to be
different from gamblingForeign currency exchange (forex) transactions

Prediction markets :

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Securities derivatives, such as options or futures, where the value of the derivative is
dependent on the value of the underlying asset at a specific point in time (typically the
derivative’s associated expiration date)

Negative consequences :
Studies show that though many people participate in gambling as a form of recreation or to
earn an income, gambling, like any behavior involving variation in brain chemistry, can become
a behavioral addiction. Behavioral addiction can occur with all the negative consequences in a
person’s life minus the physical issues faced by people who compulsively engage in drug and
alcohol abuse.Problem gambling has multiple symptoms. Gamblers often gamble to try to win
back money they have lost, and some gamble to relieve feelings of helplessness and anxiety.
A 2020 study of 32 countries found that the greater the amount of gambling activity in a given
country, the more volatile that country’s stock market prices are.

Psychological biases :
Studies show that though many people participate in gambling as a form of recreation or to
earn an income, gambling, like any behavior involving variation in brain chemistry, can become
a behavioral addiction. Behavioral addiction can occur with all the negative consequences in a
person’s life minus the physical issues faced by people who compulsively engage in drug and
alcohol abuse.Problem gambling has multiple symptoms. Gamblers often gamble to try to win
back money they have lost, and some gamble to relieve feelings of helplessness and anxiety.In
the United Kingdom, the Advertising Standards Authority has censured several betting firms for
advertisements disguised as news articles suggesting falsely that a person had cleared debts
and paid for medical expenses by gambling online . The firms face possible fines.A 2020 study of
32 countries found that the greater the amount of gambling activity in a given country, the
more volatile that country’s stock market prices are.

Is gambling an economic activity? :

Earnings through gambling would be considered as an economic activity by the ongoing
economic census if casinos are permitted by the state government. … He said that in the states
where casino gambling is illegal, the activity would not be covered under the census.

What is gambling in economics ? :

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Gambling is a historically and culturally prevalent pastime that is broadly accepted in many
cultures and societies in its various forms. Evidence suggests that most people who engage in
gambling activities do so at low levels and experience no negative consequences of their
behavior.1 However, it is increasingly recognized by communities, industry groups, gambling
regulators, and politicians that there are serious harms associated with gambling for at least a
subset of individuals, and all of these groups have a responsibility to undertake efforts to
address these issues2 Yet, despite decades of efforts to develop and implement harm-
minimization gambling interventions, few have been effective.3 Gambling-related problems at
various levels are relatively widespread in the population, including those experiences related
to another person’s gambling. For example, Australian research indicates that up to six people
are affected by every problem gambler, and gambling problems are a social issue on a similar
order of magnitude to major depressive disorder and alcohol misuse and dependence.4 Even
those who experience less serious impairments stand to benefit from initiatives to minimize
gambling-related harms, as would the many people affected by another person’s gambling.5
Consideration of a new approach to reframe our thinking and look more broadly across
academic disciplines to address gambling harms would be beneficial for policymakers,
researchers, stakeholders, and gamblers themselves.
The current article proposes that the field of behavioral economics offers a valuable perspective
for the gambling and broader addiction fields. This article focuses on understanding the
heuristics and biases that drive behavior with an aim of guiding the development of effective
interventions to minimize gambling-related harms. We conclude that greater cooperation
between stakeholders to conduct real-world trials of policies that preserve autonomy, but are
persuasive and make it easier for individuals to enact behaviors that would minimize gambling-
related harms, would make a significant impact on the serious public health issue of problem
gambling

How does gambling affect economy? :

As states have moved from merely tolerating gambling to running their own games, as
communities have increasingly turned to gambling for an economic boost, important questions
arise. Has the new age of gambling increased the proportion of pathological or problem
gamblers in the U.S. population? Where is the threshold between “social betting” and
pathology? Is there a real threat to our families, communities, and the larger society?
Pathological Gambling explores America’s experience of gambling, examining:
The diverse and frequently controversial issues surrounding the definition of pathological
gambling.
Its co-occurrence with disorders such as alcoholism, drug abuse, and depression.

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Its social characteristics and economic consequences, both good and bad, for communities.
The role of video gaming, Internet gambling, and other technologies in the development of
gambling problems.
Treatment approaches and their effectiveness, from Gambler’s Anonymous to cognitive
therapy to pharmacology.
This book provides the most up-to-date information available on the prevalence of pathological
and problem gambling in the United States, including a look at populations that may have a
particular vulnerability to gambling: women, adolescents, and minority populations. Its
describes the effects of problem gambling on families, friendships, employment, finances, and
propensity to crime.
How do pathological gamblers perceive and misperceive randomness and chance? What are
the causal pathways to pathological gambling? What do genetics, brain imaging, and other
studies tell us about the biology of gambling? Is there a bit of sensation-seeking in all of us?
Who needs treatment? What do we know about the effectiveness of different policies for
dealing with pathological gambling? The book reviews the available facts and frames the
intriguing questions yet to be answered.
Pathological Gambling will be the odds-on favorite for anyone interested in gambling in
America: policymakers, public officials, economics and social researchers, treatment
professionals, and concerned gamblers and their families.

Is gambling a investment? :
Yes,Investing and gambling both involve risk and choice—specifically, the risk of capital with
hopes of future profit. But gambling is typically a short-lived activity, while equities investing
can last a lifetime.
Investing and gambling are two activities that are often equated because they involve risk.
However, where gambling involves a high degree of chance, investing seems to marginal
activity by allowing traders to carry out technical analyses, risk management strategies and
choose a specific set of stock to buy in the first place. Let’s have a closer look .

The Difference between Investing and Gambling :

The difference between investing and gambling isn’t always clearly defined. There are many
situations in which you would not be able to tell the two apart. This comes down to the type of

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investment you pursue and the activity you choose to bet on. However, there are some things
you ought to acknowledge.

Is gambling part of GDP? :

World Revenue from gambling and betting and GDP.Some of the signs and symptoms

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problem gambling is not a financial problem, but an emotional problem that has financial
consequences.It also impacts the way in which the person with the disorder relates to his or her
family and friends. For instance, they may miss important events in the family, or they might
miss work.
Anyone who is concerned about their gambling might ask “Can I stop if I want to?” If the
answer is “no,” it is important to seek help.
Diagnosis –
Need to gamble with increasing amounts of money to feel excitementRestlessness or irritability
when trying to stop gamblingRepeated unsuccessful attempts to stop, control, or reduce
gamblingThinking often about gambling and making plans to gambleGambling when feeling
distressedReturning to gamble again after losing moneyLying to conceal gambling
activitiesExperiencing relationship or work problems due to gamblingDepending on others for
money to spend on gambling
Addiction :
For someone with a gambling addiction, the feeling of gambling is equivalent to taking a drug or
having a drink.Gambling behavior alters the person’s mood and state of mind.As the person
becomes used to this feeling, they keep repeating the behavior, attempting to achieve that
same effect.In other addictions, alcohol, for instance, the person starts developing a tolerance.
An increasing amount of alcohol is necessary for the same . A person who has an addiction to
gambling needs to gamble more to get the same .In some instances, they “chase” their losses,
thinking that if they continue to engage in gambling, they will win back lost money.A vicious
circle develops, and an increased craving for the activity. At the same time, the ability to resist
drops. As the craving grows in intensity and frequency, the ability to control the urge to gamble
is weakened.This can have a psychological, personal, physical, social, or professional
impact.Neither the frequency of gambling nor the amount lost will determine whether
gambling is a problem for an individual.Some people engage in periodic gambling binges rather
than regularly, but the emotional and financial consequences will be the same.Gambling
becomes a problem when the person can no longer stop doing it, and when it causes a negative
impact on any area of the individual’s life.

Advantages of gambling :
•Earn Money
•Easy to Start
•Fun and Entertaining
• be a Social Occurrence

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•Good for the Economy and Tourism

Disadvantages of gambling :
•Losing Money
•Addictive
•Conclusion

*Gambling in India*

In India Gambling is experienced from many decades. It presents as a form of Entertainment,

but as society develops people using this as a mode of earning money. There is a very great
opportunity of Gambling in Indian Market but most of the Gambling is Illegal in Indian State.
Gambling includes Skill Games, Casino Gambling, Online Gambling and Sports betting and many
more. There are some states in which Gambling is practiced under government laws. Gambling
has both pros and cons to the Indian economy. On the positive side, gambling provides
employment to poor and marginalized people. In the Lottery, some five million are working on

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a part-time basis. Casino generates employment in Many ways, such as preparing food, parking
car, serving customer etc.On the negative side, we can say illegal Gambling is like a termite to
the Indian economy which Is degrading it slowly. Due to its crime rate is also increasing at a fast
rate. Money generates From this illegal means is generally deployed to market, which
sometimes discouraged honest Businessman because it creates illicit competition for them.
Gambling generally does the transfer Of money from poor to rich people by giving them a false
idea of making more money. Gambling Generates illegal or black money which not show in
accounts so it does nothing to make the Economy better. Gambling is also affecting the moral
values as well as social life and economicCondition of the country. Gambling in India, being a
subject of state matter gives the power to Formulate laws to govern such activities

HISTORICAL GROWTH OF GAMBLING IN INDIA:

Gambling in India has a very long history. The gambling activity has a long and well-recorded
History in the country, appearing in many ancient texts. In ancient times they generally do not
Distinguish between what is game playing and what is gambling. The origin of gambling can be
Traced back from the epic story of Mahabharata. In which Yudhishthira along with his kingdom
Lost his four brothers and wife in the game of dice. This is a great example of reckless
gambling.The role of gambling in generating revenue is not new, during the time of Kautilya’s
gambling Was regulated by the state in which they charge a 5 percent tax on every winning.By
the 15th century, gambling is structured by the king in which he takes the profits of all Legalized
gambling houses. At that time people used to bet on bullfighting, cockfighting, goats Fighting
etc. In some fights of animal, they tied knives on their head to harm each other during The
fight.
Honored.Gambling is also more advanced during the emerging of new technologies, especially
with the Growth of the IT sector. Bets are placed on the lottery by mobile phone, fax and
internet. Gambling hosts are linked to each other by networks and transfer of money easily
possible .Through net banking. The stock market lottery has been practiced by television and
radio. Gambling on cricket, hockey and football has been possible by satellite-based live
telecasts. Many middle-class people watch Television and increase their enjoyment by placing
bets over .Phone or fax. All participants think that their action is personal, private and not
sociallyOffensive. Now a day’s gambler using a different technology from which they can do
online Betting from anywhere in the world and it is nearly impossible to trace them
Main four types of gambling prevailing in India:
1. UNDERGROUND LOTTERY
2. HORSE RACING
3. SPORTS GAMBLING

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 GAMBLING AND ITS SUBSQUENT EFFECTS ON THE
ECONOMY

4. CASINO GAMBLING

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