Gambling vs investing- It’s like comparing apples and oranges. This article explores the five key differences between investing and gambling. Keep reading below to find out more! 

The similarity between gambling and investing is a hot topic of conversation these days. Just like apples and oranges have in common the fact that they are both fruits, investing and gambling share some similarities as well. Both activities involve some sort of risk of losing money and the possibility of winning money. But is that enough to say that gambling and investing are the exact same thing? 

This article explores five key differences between gambling and investing that prove that investing in the stock market and gambling at a casino is truly not the same thing. Keep reading below to find out more!

Gambling vs investing explained 

First things first, let’s give a definition to both activities. 

Gambling is typically a short-lived activity that consists of betting money on an event that can have an uncertain outcome and heavily involves chance and luck. This can mean betting on sports events and online or offline casino games. 

Investing is the activity of allocating funds to an asset, whether that means stocks, crypto coins, gold, etc., with the expectation of generating an income in the form of profit. Investing is a long-term activity that can even last a lifetime. 

5 key differences between investing and gambling 

Now you know precisely what gambling and investing are. But, to truly understand why comparing the two is like comparing apples and oranges, we’ll dig deeper into five key differences the two activities have. 

1. The time factor 

One significant difference between investing and gambling is the time factor. In other words, while gambling is a time-bound event, investing in some sort of asset can be an activity that can last several years. 

Think about it: gambling is an activity that terminates with the end of a race or a hand. It only involves an opportunity to profit from a wager, and this opportunity ends just as fast. At the end of the event, gamblers either have won or lost their capital. With investing, the story is different. Investing can be time-rewarding. In fact, with investing, the more time passes, the bigger the profit they can make from a particular asset. For example, Bitcoin investors made a minimum investment at the beginning of this crypto coin. It was only after a few years that investors made significant profit out of their investment when Bitcoin gained sufficient popularity. The story is the same with investments in stocks. 

2. Doing research

Both gamblers and investors do some sort of research before putting their capital at stake, and the purpose of that is to improve their chances of making a winning decision. Yet, the type of information gamblers and investors look for and what they can find is very different. 

As the experts from The Gameday Casino explain, “Gamblers seek all sorts of information like bonus information, casino reviews, and casino news because all this data helps them familiarize with the gambling area, leading to more informed decisions.” 

When it comes to investing, investors research all sorts of company or asset information, including performance stats, market trends, consumer trends, and so on. 

3. Ownership of an asset 

Investing and gambling are also different for one essential reason: the ownership of an asset. 

More precisely, investors who invest their money have a particular asset they own, be it a property, cryptocurrencies, stocks, and so on. In contrast, gamblers don’t get that when investing their money. Gambling consists of betting on an event, which is something that a gambler can’t own. 

4. The fun factor 

What’s entertaining for one is a matter of personal preferences. Some people find it a fun activity to invest in digital coins or real estate properties. Others find it entertaining to bet on casino games and sports events. 

But, truth be told, it is common knowledge that gambling is a fun activity. You rarely hear an investor saying that they invest in, say, rental properties “just for fun”. So, another difference between gambling and investing is that gambling is also an entertaining activity. After all, casino games are designed in a way that helps players enjoy their time while gambling. 

5. A future vs a present goal 

Another key difference between investing and gambling is that they kind of dictate what sort of goals you can set. More precisely, with investing, you can plan a future goal for yourself, whether that is to save up for retirement, go on your dream vacation, or save for your child’s college studies. In contrast, when it comes to betting and gambling, the goal you set for yourself is often a short-term one: to earn more money. 

So, another notable difference between the two is the type of goals you can formulate for them. Sure, you can set a goal to get rich with gambling, but the “investment” you make in gambling activities are short-term. 

The bottom line

Although there are a few similarities between gambling and investing, there is a thin line that differentiates everything about these two activities. 

If you have some extra money you’d like to use to win more, you’re probably now on the fence on whether to choose to gamble or invest in something. The truth is that there’s no easy answer on which option is better, more advantageous, less risky or more fun. It is all a matter of personal choice from what you enjoy more, what are your long-term or short-term money goals, and how much you invest. 

So, the bottom line is that you have two options for “spending” that extra money you have and which option you should choose is an answer that depends entirely on you.