Why is gambling illegal in the States, and yet buying sticks and shares isn't?

Question

Before anyone says buying stocks and shares is different, it's investing ..... nonsense. The result is out of your control, therefore it's gambling. In fact, the definition of gambling is: wagering money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money or material goods

Therefore, "investing" is gambling. I'm a futures trader, I trade the markets every single day, I know it's an odds game, you can get the odds in your favour, but the parallels with poker are astonishing.

Americans can't even legally play online poker. Poker is a skilled game. I know that if I play 100 times online, in a ten man competition, I will win 70% of the time, I'm that good. It's not a game of chance, theoretically through bluffing, I can win every hand, whether I have the best hand or not.

So why can't the Yanks gamble, apart from in selected states?

ERIC

PLEASE

READ

MY

QUESTION

BEFORE

ANSWERING

I HATE IT WHEN PEOPLE DO THIS, I CLEARLY SAID, IN SELECTED STATES

Answer 1

I guess you shouldn't go to the store either, since you COULD be in an accident. Your car, health, or life is something of value.

"Investing" is buying something of value and gambling on whether the value will go up or down.

"Gambling" is putting value in nothing and hoping chance gets you everyone else's money.

Answer 2

The short answer is stupidity and ignorance.

For some who live outside the Untitled States and aren't well acquainted with its unique system of government it can be difficult to understand why different states have different laws. The US constitution gives certain limits and powers to the federal government and allows for individual states to pass laws all other issues not just gambling.

The problem with internet gambling is that it gets around the state laws prohibiting it. I live in a state were any form of gambling is illegal (except equity trading of course) and make a good portion of my income play poker on line. Many of these states have a large constituency of zealots who don’t understand and who are afraid of gambling. Unfortunately the law makers aren’t any more educated than the voters.

While I don’t deny that problem gambling tears families apart and ruins lives I don’t believe that forcing people to game underground is the way to solve the problem. It simply forces people to place their wagers with bookies and offshore companies were there is no legal recourse if a player is taken advantage of. The government is also missing out on an endless supply of revenue.

When California made gambling illegal in the 1800’s they made an exception for poker because they rightly saw it as a game of skill rather than a game of chance. Hopefully the rest of the states and the federal government will see the light as well.

Answer 3

I think it is a question of class. The powers that be, the rich in America like to 'invest.' This is why there are all kinds of companies out there where you can legally buy and sell stock in the US.

Sure you are completely right, since the profit or loss is out of your control it is clearly gambling. When you invest you are hoping the value of your investment will rise. Very similar to when you bet into a pot hoping to hit a flush draw. Some times you will and some times you won't. If you are getting the right pot odds over the long term you will be a winner.

But the bottom line is the rich politicians who make these decisions make stupid morality decisions based on ignorance. Powerful lobby groups convince them that investing is important, whereas gambling is sinful. They have skillfully managed to draw a distinction between investing and gambling.

At the core it amounts to the same thing. But the elite are never going to ban a pastime they enjoy, like stock trading.

Answer 4

what exactly are the odds of the last time you invested.. what exactly are the odds of a pass line bet with 10 times odds in craps...it is illegal to place a wager online or over the telephone in the united states. what EXACTLY are the odds that I will be charged for this criminal act? ok mister smart investor. prove it...the world series of poker. 10,000 buy in...7500 participants.....750 tables of 10 players each.........you win your table and then you move on and on and on. i didn't see you at the final table. an Irish fellow named the unabomber doesn't win 70% of the time so you must be better than him. how come i have never heard of you .it is because i suck as a poker player and i can crush you. what exactly are the odds that you are a worse investor than a poker player.I await your response. PS...i just made a nice tidy profit shorting the cable against the euro

Answer 5

I live in the "no gamble" state of Tennessee. There are gambling states around me such as Mississippi and Indiana. We do have a lottery. Many states also have "dry" counties. These do not allow the sale of alcohol or limit alcohol to no sales on Sundays. They are primarily in the "Bible Belt" of southern states.
These laws go way back to the religious ways of different religions that dominated those states such and Baptist's.
Hope That Helps.

Answer 6

A lot of it's to do with the bible and Americans being deeply religious people apparently. In the bible Jesus wrecked a place because they were gambling in it, therefore it's not allowed. With exception to Las Vegas, most casinos are actually on Indian Reservations which have different laws and therefore exempt.

Answer 7

Each state has the right to choose ..."GAMBLING or not"

Investing is different...while its the ultimate in gambling...it is also a very safe way to invest/gamble..

Not like gambling where the house always wins.

IN investing ..its all a matter of common sense.

Answer 8

Gambling is not illegal in the USA, but taking bets over telecommunications wires is per the Telecommunications act.

That makes gambling on the internet illegal. You will notice, that there are no internet casinos based in the USA, although many imply that they are based here.

Answer 9

Are you insane. gambling is legal, it depends on the state. In NJ and NV all gambling is legal. In WV Hourse racing, dog racing, and video poker is legal. And anyone can play online poker. Please check reality before posting a stupid question.

Answer 10

STOCK AND SHARES ARE TRADING YOU GET SOMETHING FOR YOUR MONEY AND THEN SPECULATE THAT IT WILL MAKE MONEY
YOU COULD SAY THAT PEOPLE WHO BUY PAINTINGS ANTIQUES OR EVEN CLASSIC CAR TO SELL LATER FOR MORE MONEY ARE GAMBLING