In the eyes of many, gambling is seen as a danger, an addiction, and a moral hazard -- but so many people continue to participate in this activity in growing numbers. What causes people to choose to gamble, when at the same time they are incurring risk? In today's American society risk is greatly avoided, and that is seen through the numerous financial insurance policies. So why consume risk?
There are three major explanations as to why gambling is so prevalent in a nation where it is even illegal in most places. The first suggestion is that people enjoy the action. Everyday life is without action as it is filled with daily routines. When gambling, an individual is allowed to cross the line from routine to adventure, where feelings and characteristics emerge in a scene unlike the norm. A gambler who wins experiences feelings of strong-mindedness and boldness, and for those who don't experience these feeling in the context of their daily life can be re-created through the actions of risk consumption.
The second theory behind why people gamble is economic by nature. This theory begins with the assumption that the gambler is of low economic and social status. The theory, then, is that people gamble because it is the only way to improve their economic and social status. It is thought that people do not easily change their situation in life, but gambling provides the possibility for immediate solutions with the chance of unexpected success.
Finally, the third explanation arises that uses Veblen's notion of conspicuous consumption. This theory suggests that people (generally poor) gamble in order to associate themselves with the winners. This type of gambler is not so much bent on winning or loosing, but simply wants to join the ranks of the elite by taking on this risk -- whether it makes his/her own financial situation worse or not. In consuming risk by gambling with the elite, this conspicuous consumer believes that they are consuming ideally as they appear to be part of a social class to which they do not ordinarily belong.