Gambling involves risking something of value, usually money, in the hope of realizing a gain. It has been a part of virtually every culture since prerecorded history, and is incorporated into many customs, traditions, and rites of passage. It can have negative and positive social, family, personal, and financial effects for individuals who gamble. It is also a source of entertainment for the public at large.

Some people are more susceptible to gambling problems than others. These include younger people, particularly those in their teens and twenties who are more likely to try new things without thinking about the consequences; and those from lower socioeconomic groups, who may be more motivated by the hope of a small win than by the opportunity to invest scarce resources elsewhere. It is estimated that up to 5% of young adults and a slightly higher percentage of men develop a gambling disorder.

There are several different ways to measure the social impacts of gambling. The most commonly used way is to examine the amount of money that is lost to gambling and compare it to the revenue that is generated by gambling. This approach is referred to as consumer surplus and is often used to quantify the social benefits of gambling. However, this method is problematic because it focuses solely on the positive economic impact of gambling, ignoring the negative social and emotional costs.

Studies that focus on consumer surplus also tend to ignore the societal and community costs associated with gambling. These can be both indirect and direct, including costs associated with a person’s gambling habits, which can lead to other illicit activities such as forgery or theft; the harm caused by a gambler’s addiction to gambling, which can result in strained relationships and even violence; or the negative impact on a person’s reputation, employment, and education.

In addition, the indirect or community costs of gambling can be significant. These costs may be in the form of taxes and fees levied by gambling establishments to support local governments or businesses, or in the form of indirect benefits such as tourism, infrastructure improvement projects, and job creation. Some communities, such as Las Vegas, Nevada, are largely dependent on gambling revenues.

The negative social and psychological impacts of gambling can affect a person’s self-esteem, relationships, physical and mental health, work performance, and their sense of control. They can also impact other people, such as their families, friends, and coworkers. Moreover, some people become so addicted to gambling that they can no longer function normally in their daily lives. This condition is referred to as pathological or problem gambling. These people can be a danger to themselves and their families, as they are more likely to engage in petty crimes like stealing and forgery or commit serious violent acts, such as spousal and/or child abuse or homicide, to sustain their gambling habit. Pathological gambling has also been linked to depression and substance use disorders.