Why Is Gambling Considered A Taboo? – Society Vs Betting

Posted on by Toby @ Punter2Pro

I’ve asked myself: is there any particular reason why so many people consider gambling a taboo? Is it really so different from other, more accepted, forms of betting?

Trading and gambling are similar in that they both involve taking calculated risks to generate a capital gain; neither produces a new product or service. Yet within our society, gamblers continue to be viewed in a more negative light than traders from a financial background.

In this post I explore the social factors that contribute to this bias.

 

1. No “New Wealth”

While you could earn a profit, or even make a living from gambling, no additional product or “wealth” is created. This isn’t unique to gambling, though. The same is true for financial, crypto, and other types of trading.

So what exactly is “new wealth” if it isn’t purely measured in terms of profit?

It can take many forms. Generally, it refers to a product or service that others find valuable. For example, a suit tailor, psychologist, mechanic, baker, or police officer.

Arguably, financial or sports traders create market liquidity, which benefits long-term investors and bettors, and that provides some value. But that’s a stretch. The bottom line is that both trading and gambling involve capital transfer without capital creation. Society prefers the tailor-type endeavour because it produces something beneficial to others.

Side thought: Does Punter2Pro.com create “new wealth” by providing its readers with betting advice?

 

2. A “Mug’s Game”

It’s widely known that casinos and bookmakers have an ‘edge’ or ‘overround‘ that keeps the odds in their favour. With the odds stacked against players, society treats gambling much like alcohol or tobacco: legal, regulated, but carrying serious risks for the consumer. Gambling is essentially seen as a “mug’s game”.

By contrast, financial trading isn’t deemed ‘unfair’ since the markets aren’t controlled by a single entity holding an advantage. The risks remain, but they’re not emphasised in the same way as gambling. In fact, financial losses can be far greater — particularly due to the use of borrowed capital (debt).

Nonetheless, the sports betting industry already offers platforms such as Betfair that mimic, and rival, the stock market in terms of transparency and fairness. Sports betting no longer deserves its long-standing reputation as a “mug’s game” — because players don’t have to accept reduced odds that are “rigged” against them. Indeed, punters have had betting exchanges — where the public sets the odds — at their disposal for over two decades.

Yet despite Betfair (and its imitators) introducing revolutionary products, most gamblers don’t appreciate the scale of that breakthrough. Even Betfair themselves realised players wouldn’t fully embrace their trading product and ended up adding a traditional bookmaker — with inferior odds — to the very same site. Crazy, right?

The tradition of the bookmaker lives on. And while it does, I don’t see sports betting being regarded as an ‘investment’ in society. It will remain a taboo.

Learn more about bookmakers in my post: How Do Bookmakers Earn? How Big Is Their Edge?

 

3. “Unskilled” & “Lazy”

Professional gamblers struggle to shake negative labels. The average non-gambler often sees them as naïve, unintelligent, unskilled — or even lazy. The hard work is rarely recognised.

There’s a perception that professional gamblers are cutting corners, trying to avoid the daily grind of the workplace. Many people simply don’t believe it’s possible to earn a substantial living from gambling, or that it requires real effort. Yes, plenty have tried and failed. Many give up early. But there are also highly intelligent individuals who succeed long term in both the sports and casino betting worlds.

Professional gambling isn’t guesswork. Building and refining predictive models for sports events can take years of trial and error — not to mention advanced mathematical and programming skills. The combined efforts of analysts and traders have made betting odds so sharp that becoming a professional bettor is harder than ever. Professional gambling is not an easy escape from employment; it’s a highly competitive field filled with smart people.

Sports betting is gradually following financial markets down the road of statistical analysis. Over the coming decade, we can expect more index-type betting products to emerge. This will likely attract more academics and may shift the public’s perception of gambling as “unsophisticated.”

 

4. Not a “Real Occupation”

You’re unlikely to be taken seriously if you say “I’m a professional gambler”.

Society encourages people to aspire to certain professions by studying or gaining qualifications. Nothing equivalent exists for professional gambling.

There’s no large-scale company to work for in the city centre, no skyscraper, no glamour — no presence. In our society, professional gambling is so far off the grid that it isn’t viewed as a “real” job at all. Meanwhile, crypto and financial trading are seen as exciting, modern, and smart, with entire industries and career paths built around them.

I’ve experienced this stigma first-hand. Several freelance programmers refused to work on my Betfair trading projects, worried it would damage their CV and limit future career prospects. They saw the taboo. My response was: “But we’re building algorithms for Betfair trading programs. Why is that so different from programming for any other type of investment?”

Professional gambling has a long tradition of existing in the shadows. Most professionals operate quietly, and why wouldn’t they? They’re happily earning a living while others dismiss them.

 

5. Debt, Addiction & Problem Gambling

Gambling is like smoking. Infrequently — say once a month — it probably won’t cause serious harm (unless your cigarette is exceptionally large). But it’s all too easy to do it more often. Once you form an impulsive habit, you’re almost guaranteed to lose in the long run.

Whether online or in a shop, there are endless opportunities to start betting. You only need to be 18+ (depending on location) and as little as £1 to get started. Walk through any UK town and you’ll find at least one betting shop — even in otherwise abandoned areas. Betting shops thrive in poor neighbourhoods as well as rich ones.

Addiction and debt are serious risks, and those who cannot afford to lose are hit hardest. Some groups or personalities are more vulnerable than others. Gambling companies do the minimum to protect them, since profit remains the priority. This, understandably, fuels the taboo around the industry.

Learn more about greed within the gambling industry.

 

6. Criminal Activity

Our society often associates gambling with crime.

Think of popular TV and film characters — Tommy from Peaky Blinders, Tony Soprano, Brick-Top from Snatch, Sam Rothstein (Robert De Niro) in Casino, or Lester Murphy (Edward Norton) in Rounders. Almost every mainstream depiction of gambling involves criminality.

The stereotypical mob-like gangsters linked with gambling commit crimes such as money laundering through casinos, loan-sharking to addicts, unlicensed bookmaking, and betting scams. These activities do still exist in reality. But other industries also have their share of crooks — the financial markets are full of them too.

 

7. Religious Factors

In a diverse society, religious and cultural values vary. Some — but not all — religions consider gambling a taboo.

Gambling is forbidden in most ascetic Hindu practices, while less strict sects focus on the motives and outcomes of gambling when judging its morality. Jewish teachings condemn it because the loser wasn’t expecting to lose. Muslims view its addictive nature as destructive to family and social stability. Christians, however, lack a unified stance since Jesus said little about gambling directly.

Religious views don’t usually condemn trading. Trading isn’t technically “gambling,” despite its similarities. Financial trading also didn’t exist when most religious texts were written, whereas gambling was. That leaves interpretation up to the individual. For some, trading may bypass the rules.

Do you consider gambling a taboo? How do you view professional gamblers?

Toby @ Punter2Pro
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