When Is Gambling Not Gambling?
2007-08-15 12:45:25
By:
Gene Bromberg
Usually it's the government who gets to decide what the definition of "gambling" is. Which makes sense, as they're the ones who make the laws. And they're also the folks who can sic the cops on you and toss you in jail if they don't like what you're up to.
When the UIGEA was passed it was intended to stop financial transactions to internet gaming sites. Unless...unless those transactions involved horse racing, online lotteries, and fantasy sports. Because the government decided that betting on the ponies, playing the numbers and valuing Hines Ward over Jamal Lewis did not constitute "gambling". At least not the sort of gambling they felt was worth squelching.
Of course, life is all about gambling. We take calculated risks a thousand times a day. Some are small (should I get gas here or see if it's cheaper up the road?), some are more significant (should I try rewiring the kitchen by myself, I think I know what I'm doing?). Nearly everyone engages in a form of gambling called "investing". You take some money and, instead of spending it today on a Big Mac or an iPod or a
BMW M5, you invest the money in stocks, bonds, CDs, or some other investment vehicle. The idea is that the money you invest will be worth more down the road than it's worth today, allowing you in the future to buy a Double Whopper with Cheese, an iPhone, or a BMW AeroSled (or whatever they have on the market by then).
People expect their investments to appreciate over time--they're careful to put their money in situations where they're far more likely to make money than lose it. Rather sounds like
poker, doesn't it? At least
poker as played by folks who actually want to win. But, as in
poker, some people like action. They don't want to grind out a small win day-in and day-out--they want to make a big score. And they don't mind putting their whole bankroll at risk in the attempt.
The
poker writer Amy Calistri has a
very good piece up on her blog about a form of investing you may have heard a bit about recently--hedge funds. Hedge funds are unregulated, private, often heavily-leveraged groups that often seem to be more akin to gambling than investing. Which is fine--risk often equals reward. Or sometimes not, if you read Amy's post and the often-ridiculous terms investors often agree to when then join these funds. You think the rake at your local cardroom is extreme? Methinks you'll change your mind after reading Amy's article. And you'll also find your anger rising at the continued hypocrisy of those in goverment who anathematize
online poker...and then happily turn a blind eye to other activities with far great consequences and potential for abuse.
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