Betting and gambling are terms that often go hand-in-hand. First of all, in both of these cases, you’re competing against other people in guesswork for some sort of gain. If they’re formal (not a friendly wager), you’re making a guess that will result in a monetary gain. Both of these activities can be adrenaline-infused and they seem to attract the same type of people (usually even the same people).
Now, with all of this in mind, it’s easy to see why a lot of people don’t understand subtle nuances between the two. Some even go as far as to use betting and gambling as synonyms. Nothing can be further from the truth. Here’s why!
Betting is an agreement between two or more parties, where the party whose assumption turns out incorrect has to forfeit something to the other.
Gambling is about wagering money on an event that previously has an uncertain outcome.
Now, right off the bat, the definitions themselves indicate one major difference – a bet can be placed on a past event. For instance, you could bet with a friend on the exact date of the end of World War Two. A gambling bet, on the other hand, is always an event in the future.
There’s no game in which you toss a dice (even if you can’t see it) and then place a wager on where it’s landed. Even in online gaming, the RNG process is not initiated until the bets are already placed.
Now, keep in mind that this doesn’t mean that you can’t place a bet on a future event.
One more difference lies in the fact that gambling (at least legal gambling) always involves money. On the other hand, betting can involve favors, services, personal items, etc. Overall, betting is less formal, which means that the rules are more prone to interpretation.
Gambling is usually done professionally or on a professional level. In order to gamble, you would have to go to a casino. Here, you would buy chips to use as a currency, abide by all the game-proscribed rules, while failure to do so would result in disqualification.
A bet, on the other hand, can be completely informal. You can place a bet with a friend and, provided that you trust them well enough, you might not even need a witness to your bet. Also, the majority of bets between friends rely on the honor system. This means that there’s no need to consider the means through which you will enforce the result. In fact, there are no such legal means.
For this very reason, when it comes to gambling, the organization charges in advance (through selling chips, charging entrance fees, etc.).
Also, seeing as how gambling is usually done in a formal, professional setting with clearly defined rules, learning proper gambling terminology might be required. With bets, there are no such requirements. Bets are far more intuitive. However, the rules themselves are loosely defined, which is what causes all the ambiguity.
Fact Vs Probability
Now, there’s another interpretation regarding the difference between betting and gambling. Now, betting is determined by simple fact-checking.
- Does something materialize?
- Who got the date of the historical event right?
- Did someone manage to pull something off?
With gambling, it’s all about probability. The likelihood of you guessing odds in roulette are always 37 to 1 (or 35 to 1, depending on whether you’re playing an American roulette).
One more difference worth pointing out is that with gambling there are only two possible outcomes – you got it right or you didn’t. In a direct bet/wager between two parties, there’s sometimes room for the probability that no one will get it right. In that case, the bet is forfeit. Also, if it’s a friendly wager, chances are that there’s an outcome planned for this eventuality, as well.
Wagering on Sports Events
Now, betting on sports events is far closer to gambling than friendly wagers are. This only goes to prove that there are nuances to this term and even explain why the distinction between the two is so confusing.
Wagering on sports events is a particularly big and powerful industry. It’s also incredibly complex and there are professional bookmakers who specialize in making the odds. Today, you can bet on anything, ranging from who’s going to score the first point, all the way to what hand/foot they’re going to use to score it.
This also gives one noticeable distinction between betting and wagering. When playing roulette, betting $100 on black (for instance) is always going to yield the same amount at the same table. When wagering, odds are made before every match. Even two boxers squaring off one another or two teams playing against each other won’t always have the same odds. A key player may be injured, the previous matchup may have shown a bigger difference between two teams than was previously perceived, etc. This is what makes wagering more dynamic.
Also, betting seems to take more skill than gambling (in the majority of cases). For instance, there’s no way that you can know where the roulette ball will land. However, by observing two fighters/teams, you can make a fairly accurate deduction on how things will go. Then again, skill-based gambling games like poker stand to prove you wrong. Nonetheless, even the best poker player in the world may be powerless if their opponent keeps getting one insanely strong hand after another.
As you can see, while the distinction is made difficult by subtle nuances within the broad term of betting itself (a friendly wager, betting on a racehorse, etc.) the differences are more than clear. Sure, situationally these concepts may sound similar but they’re never actually the same. With gambling, it’s all about odds and uncertain outcomes. With bets, it’s about being right or wrong when guessing an outcome, regardless of the odds or probabilities.
Then again, it comes down to the context as well. Poker is clearly a gambling game that depends on skill, while you can feel free to bet on the events that you have no prior knowledge about (thus bringing your odds down to mathematical chance).
Fortunately, you don’t have to know the difference in order to enjoy either of the two.