What type of risk does gambling represent?

Gambling represents speculative risk because it involves the chance of gaining or losing something of value, typically money, based on the outcome of an event that is uncertain. In speculative risk, the outcomes can be both positive and negative, which distinguishes it from pure risk, where only the possibility of loss exists without any chance of gain.

Speculative risks are characterized by the fact that they can lead to financial profit or loss depending on the actions taken or events that occur. In the case of gambling, players actively choose to engage in risk-taking behavior with the expectation that they might win. This contrasts with pure risks, such as natural disasters or accidents, where the only possible outcome is a loss, and no potential for gain exists.

Understanding gambling as a speculative risk emphasizes the voluntary nature of the choice to participate and the uncertain nature of the potential outcomes, as well as how individuals engage in gambling for the sake of profit, unlike pure risks that are typically unpreventable.