Difference between gambling and taking a risk

gboyinwa ajomale

October 10, 2017 4:26 PM

If you want to succeed in business or entrepreneurship, it is of utmost importance to take risks. Most businessmen got to the peak of their career by taking risks.

Gambling and taking a risk. Do both words have the same meaning? A lot of people confuse these two words to have the same meaning. But actually, they dont.

You should be able to distinguish between the two terms when it comes to finance and money talk.

But when taking risks, you should be sure that the risk you are about to take in business has the potential to yield positive results. This is where calculated risks come in.

Calculated risk is a type of risk based on an educational point of view, which is predicated on some certain rules that should be followed. Investors would go ahead to take a business risk after studying and going by some business rules, doing a feasibility study on what they are about to invest in, calculating their profit and loss before going ahead to put in money for investment.

With calculated risk, emotional intelligence comes into play

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As for gambling, it is so different from taking risks.

According to wikipedia gambling is the wagering of money or something of value (referred to as "the stakes") on an event with an uncertain outcome with the primary intent of winning money or material goods.

Gambling is a game of chance, in gambling, the stake on losing is much higher than the stake on winning. With gambling, you have no idea if you would win or lose.

There are so many stories about how people have lost all their life savings to gambling. The thing about gambling is that there is always a slim chance of winning but when you eventually win you keep staking more from what you've won with the feeling you will win more until you eventually lose it all. And you are back to square one.

Gambling could become so addictive and if you are not careful, you could lose everything just to gambling. People become emotionally addicted to gambling.

With the incessant rise of sports betting in the country gambling has become a thing most millennials engage in. As the male folks indulge in it, so do the female folks. Gambling has become a means of livelihood for Nigerians, especially millennials.

gboyinwa ajomale