What is gambling?
Gambling, the betting or staking of something of value, with consciousness of risk and hope of gain, on the outcome of a game, a contest, or an uncertain event whose result may be determined by chance or accident or have an unexpected result by reason of the bettor's miscalculation.
What is the cause of gambling?
Self! Love of money! Addiction! Many factors can contribute to gambling addiction which includes desperation for money, the desire to experience thrills and highs, the social status associated with being a successful gambler, and the entertaining atmosphere of the mainstream gambling scene.
The two main types of gambling include:*
Chance-based – such as playing the lottery(baba ijebu, nairabet), roulette, bingo or gaming machines. The results are random.
Skill-based gambling – such as betting on races and playing poker or blackjack. Your ability or skill can influence whether you win or lose.
What is Investing?
Investing is the act of allocating funds or committing capital to an asset, like stocks, with the expectation of generating an income or profit. The expectation of a return in the form of income or price appreciation is the core premise of investing.
Risk and return go hand-in-hand in investing; low risk generally means low expected returns, while higher returns are usually accompanied by higher risk. Investors must always decide how much money they want to risk. Some traders typically risk 2-5% of their capital base on any particular trade.
Longer-term investors constantly hear the virtues of diversification across different asset classes. However, risk and return expectations can vary widely within the same asset class, especially if it's a large one, as the equities class is. For example, a blue-chip stock that trades on the New York Stock Exchange will have a very different risk-return profile from a micro-cap stock that trades on a small exchange.
Differences between gambling and investing.
As it was defined before, let me give you full details on gambling beyond entertainment:
Gambling is defined as staking something on a contingency. Also known as betting or wagering, it means risking money on an event that has an uncertain outcome and heavily involves chance.
Like investors, gamblers must also carefully weigh the amount of capital they want to put "in play." In some card games, pot odds are a way of assessing your risk capital versus your risk-reward: the amount of money to call a bet compared to what is already in the pot. If the odds are favorable, the player is more likely to "call" the bet.
Most professional gamblers are quite proficient at risk management. They research player or team history, or a horse's bloodlines and track record. Seeking an edge, card players typically look for cues from the other players at the table; great poker players can remember what their opponents wagered 20 hands back. They also study the mannerisms and betting patterns of their opponents with the hope of gaining useful information.
In casino gambling, the bettor is playing against "the house." In sports gambling, and in lotteries—two of the most common "gambling" activities in which the average person engages—bettors are in a sense betting against each other because the number of players helps determine the odds. In horse racing, for example, placing a bet is actually a wager against other bettors: The odds on each horse are determined by the amount of money bet on that horse, and constantly change up until the race actually starts.
Generally, the odds are stacked against gamblers: The probability of losing an investment is usually higher than the probability of winning more than the investment. A gambler's chances of making a profit can also be reduced if they have to put up an additional amount of money beyond their bet, referred to as "points," which is kept by the house whether the bettor wins or loses. Points are comparable to the broker commission or trading fee on investor pays.
How many times during a discussion about finances have you heard someone say, "Investing in the stock market is just like gambling at a casino or sport betting online"?
True, 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.
Also, there is a negative expected return to gamblers, on average and over the long run. On the other hand, investing in the stock market typically carries with it a positive expected return on average over the long run.
Both Investing and gambling involve risking capital in the prospect of making profit and the key principle is to minimize risk while maximizing reward. Gamblers have fewer ways to mitigate losses than investors do. Investors have more sources of relevant information than gamblers do.
Over time, the odds will be in your favor as an investor and not in your favor as a gambler.
investment risk management strategy
· Spreading your capital across different assets, or different types of assets within the same class, will likely help minimize potential losses.
· In order to enhance their holdings' performance, some investors study trading patterns by interpreting stock charts.
· Stock market technicians try to leverage the charts to glean where the stock is going in the future. This area of study dedicated to analyzing charts is commonly referred to as technical analysis.
· Investment returns can be affected by the amount of commission an investor must pay a broker to buy or sell stocks on his behalf.
· When you gamble, you own nothing, but when you invest in a stock, you own a share of the underlying company; in fact, some companies actually reimburse you for your ownership, in the form of stock dividends.
Investing and gambling Comparism
Mitigating Loss
When betting on any pure gambling activity, there are no loss-mitigation strategies. Stock investors and traders have a variety of options to prevent total loss of risked capital. Setting stop losses on your stock investment is a simple way to avoid undue risk. If your stock drops 10% below its purchase price, you have the opportunity to sell that stock to someone else and still retain 90% of your risk capital. However, if you bet N100,000 that Chelsea will win the Man U this season, you cannot get part of your money back if they just make it to the Super Bowl. And even if they did win the Super Bowl, don't forget about that point spread: If the team does not win by more points than given by the bettor, the bet is a loss.
The Time Factor
Gambling is a time-bound event, while an investment in a company can last several years. With gambling, once the game or race or hand is over, your opportunity to profit from your wager has come and gone. You either have won or lost your capital.
Stock investing, on the other hand, can be time-rewarding. Investors who purchase shares in companies that pay dividends are actually rewarded for their risked dollars. Companies pay you money regardless of what happens to your risk capital, as long as you hold onto their stock. Savvy investors realize that returns from dividends are a key component to making money in stocks over the long term.
Getting Information
Both stock investors and gamblers look to the past, studying historical performance and current behavior to improve their chances of making a winning move. Information is a valuable commodity in the world of gambling as well as stock investing. But there's a difference in the availability of information.
Stock and company information is readily available for public use. Company earnings, financial ratios, and management teams can be researched and studied, either directly or via research analyst reports, before committing capital. Stock traders who make hundreds of transactions a day can use the day's activities to help with future decisions.
Gambling is in categories namely: Political, Religious, Sex, Community and Financial gambling.
The recent pandemic lockdown increase gambling rate across Africa especially in Nigeria. Businesslifeafrica investigation on gambling revealed how baba ijebu never prayed for Covid extinction. The agents revealed to Emmanuel Ogunleye, BLA reporter
C19 Testimonial: Baba Ijebu Celebrates Over 200% sales Increase
During the covid 19 incubation for about 7 months, Baba ijebu, the number one popular gambling system in Nigeria testify to their increase in sales by over 200 percent during the lockdown.
As the government of Nigeria failed to provide for the welfare of the citizenry during the pandemic, it was recorded that the gambling rate rises from about 10% to 20% for survival and sustainability of many homes in Nigeria.
The SMEs who are the major driver of the economy are badly hit as Government could not rescue or support for survival. Many who are struggling to move above poverty level were forcefully dragged beyond the poverty line (backward).
They have no option than to look for alternative way to be relevant and provide for their family needs when there is no hope. Many ran towards ‘Baba Ijebu’ for help by investing what they have at hand for double returns from the gambling.
Emma Oguns, One of the gambling agent claimed that ‘Baba Ijebu’ helps a lot of people in Nigeria during the lockdown and after by giving them hope via the game reward to build, rebuild dreams and collapse businesses stability'. He said
'The game has been lifting people out of poverty and it is still, that is why people didn't stop playing it.'He affirmed.
How it works
'We play six games a day from Monday to Sunday and we realise more than N30,000 per day on a normal day but during the covid 19 lockdown when government could not assist citizenry's for feedings, as all government promises was not fulfilled. A mere promise that was diverted by the same people in government.
People who eats on their daily struggles are more vulnerable e.g transporter, labourer, market women and men, petty traders, teachers etc baba ijebu was the only hope for most of them because that was the only shop allowed to open during the pandemic. People used their office as the gathering centre as try to boycout the family demand on daily basis that money is not coming in and it is going out.
Due to huge participation, we were recording over N100,000 per day against the previous N30,000 before the pandemic. What as testimony! The profit was so much to the extent that we agents of baba ijebu never pray for covid 19 to stop.
See! People are still winning everyday and it helps a lot of people including me' he emphasized.
Experts Contributions
Dr. Vincent Nwamma, Country manager, Bloomberg Media Initiative Africa (BMIA ) said Nigeria and Africa as a whole don't have investment and development Patience - reasons why we became prey in the hand of scammers or fraudsters
He also disclosed to Business Life Africa that the rate at which our youth are getting involving in gambling are worrisome. They believed that innovations takes time to yield than gambling that can rewrite N200 to 2million in a month.
I don't blame them and I blame them. Why? When and where there is no problem, no solution provider s needed. A great number of them have concluded that Nigeria is a scam. If it is true, it means we are all scammer." A report shows that 60 percent of Nigeria population between the age of 16-45 are gamblers. Hmm! When a system is populated with gamblers than innovators, it became a scam village - BLA
Others
Sex Gamblers: They are set of people who bet to have sex for money. Many young ladies now involve in this for wealth creation. It is very common among the tertiary institutions ladies.
Mrs Aderenle Dimla spoke on how ladies are jumping from one relationship to others because of inheritance. Once they give birth to a baby, they file divorce to request for their quota of the man's property and zoom. Likewise young lazy men who are busy searching for sugar mummy to service and dupe. It makes all our youths more lazy to innovate as they get cool cash from their sex gambling business.
Community Gamblers
Community gamblers are the land owners who play tricks to get money at all cost from the buyers. Land cases year in year out. We discovered that most land fights and cases are agreed by families to be relevant and make more money.
All land agents popularly known as land grabbers belongs to the same association. If you have any land issue, you most be skeptical in dealing with the land owners.
So many of them sold land that does not belong to them, in the process to win the game, judgement and court case will set in. Those who can ensure and follow up wins but the impatient lose to land grabbers.
Our investigation revealed that many land cases between land owners are not real. It is called ‘Jankara case’ which as been in existence for more than 30years now.
A situation whereby, land owners families makes a 5year rotation between each other by claiming to win statutory of the land to extort people.
There are so many cases we have investigated in more than 20 communities in south west Nigeria where land crises ravage. It shows that, most families demonstrating in public as foes over land are in synergy to make turn by turn money. - Business life Africa.
Resolutions
Gambling is not good for survival as it render many youths, able family men lazy and unproductive. It can not be inherited or transfer as a legacy to the coming generation.
Nigeria really needs a total restructuring to lift as much as possible people out of their penury situation and be independent to support the growth of the nation. We need to reverse back to 1963 Constitution implementation which give liberty to Nigerians.
We need to Empower the youth, insurance scheme should be available (property, health etc), education should be funded with utmost priority and house deficit saga should be solved. The citizen will care less of being their own government at the detriment of their lives.
Nigeria is bad because we don't have leaders with governing spirit but one with gambling spirit.
Be wise... BLA revelation to Information that grows business
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