The Difference Between Lotteries and Gambling
Lottery – a game with established rules where players buy tickets for a chance to win cash or other merchandise prizes.
Gambling – a game or mutual bet according to established rules whose participants, seeking monetary gain, voluntarily risk losing an amount they have paid in, and where winning or losing is determined by chance, by some event, or by the result of a sport competition.
What they have in common
How they differ
In a lottery, players compete against other players. A lottery’s prize fund is set in advance and the lottery operator does not participate in the game.
In gambling, players compete individually against the gambling operator. It is in the gambling operator’s interest to win against the players.
Levels of thrill depend on a combination of these key factors:
1. The price to participate in a game and the size of the prize. The smaller the cost of playing a game and the bigger the prize (the amount that can be won), the more participants are drawn in (and vice versa).
2. Likelihood of winning. The greater the likelihood of winning, the more participants are drawn in (and vice versa).
3. The amount of time between when a bet is made, its outcome and the opportunity to bet again. The less time there is between when a bet is made, its outcome (won / lost) and the opportunity to bet again, i.e., the less time there is to make a rational decision on whether to continue wagering or to quit, the more participants are drawn in (and vice versa).
Principals for the taxation of lottery and gambling operators
What is taxed is sales revenue:
a 5% lottery tax;
an 8% allocation to charity or sponsorships.
In total, 13% of revenue.
There are two bases of taxation:
1. A fixed tax per gambling machine (at casinos or slot halls);
2. A tax on GGR (what players pay in minus the winnings paid out to them): 15% for betting and sweepstakes, 10% for remote gaming.
A lottery operator sells EUR 1000 worth of lottery tickets. 13% of that revenue, i.e. EUR 130, will go to good causes: EUR 50 will be paid into the state budget as a lottery tax and another EUR 80 will go to charity or sponsorships.
A remote gambling operator takes EUR 1000 of wagers from players. If the GGR (the amount players wager less the winnings they’re paid) is, say, EUR 100, then 10% of that, i.e. EUR 10, will go to good causes: it will be paid into the state budget as a gambling tax.
Sales revenue, EUR
Tax rate, %
Tax amount, EUR
Net income (GGR), EUR
Tax rate, %
Tax amount, EUR
Total taxes, EUR
Tax on revenue, %
Tax on net income, %
- About the Association
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- The Difference Between Lotteries and Gambling
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- Members’ Social Responsibility
- Responsible Gaming
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The Difference Between Lotteries and Gambling Legal definitions Lottery – a game with established rules where players buy tickets for a chance to win cash or other merchandise prizes.
Is Buying a Lottery Ticket Gambling?
Are you one of many who have said, “What’s the harm in buying lottery tickets?” Have you made a few wagers on Monday night football? Did you help plan Casino night at your kids’ school? Are you constantly hoping you’ll win the lottery in order to end all your financial problems?
If so, are you gambling?
Yes, according to Rex Rogers and his book, Seducing America: Is Gambling a Good Bet? You may or may not agree but Rogers says
Rogers says gambling is a problem for a Christian for these reasons:
* Not justified in the Bible
* A dependence on luck and chance rather than God’s sovereignty
* A violation of our stewardship
* An undermining of our work ethic
* The result of covetousness
* A form of theft
* Often associated with social and personal vices
Gambling usually begins as a harmless flirtation, but becomes a problem for many people. In fact, it has become an acceptable and mainstream addiction in American culture. The church has been strangely silent on this issue.
A gambling addiction is a serious and often difficult to stop. Left untreated, a person’s life can spin seriously out of control. Compulsive gamblers lie, deny the seriousness of their problems, and become irritable when trying to quit. Like other addictions, gambling fills an empty place, covers depression, anxiety, guilt or helplessness, and allows someone to escape immediate problems.
Talk to anyone who lives with a compulsive gambler and he/she will tell you about the destructive forces at work with this type of addiction. It’s not a coincidence that the state of Ohio prints warnings on their lottery tickets that say, “Compulsive gambling can be treated.” If you have a gambling addiction, get help.
Do you agree or disagree? My Facebook peeps are weighing in but you can also comment here.
Is Buying a Lottery Ticket Gambling? Are you one of many who have said, “What’s the harm in buying lottery tickets?” Have you made a few wagers on Monday night football? Did you help plan Casino