Gambling win loss taxes

Gambling win loss taxes. What is the Difference Between Gambling and Investing? -

But I'm probably not the best person to make a judgment on this question, because I've never found either gambling or investing to be entertaining However, venture funds typically yield higher returns than stocks because a small percentage of the firm's investments are home runs, more than making up for complete losses on other investments.

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Investors tend to avoid risk unless adequately compensated for taking it, but gamblers don't. Many people regard investing as a planned strategy of wealth-building for specific future goals. However, this characterization of gamblers as risk-takers applies only to non-professional gamblers, people who visit Atlantic City for a weekend for entertainment purposes.


On the other hand, buying in the belief that a stock's price will eventually reflect its value, with the plan of holding as long as it takes for this to happen, is more like investing. A third term, 'speculating', is often used to straddle the two, specifically to handle activities that would ordinarily be considered investing but are done in a way that make them feel more like gambling.

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So while venture capital might seem like gambling in that the odds are against the VC firms on any given bet, on average the expected payoff is positive, so the odds in the long run are actually in their favor. To put it another way, investors take only the risks they should take, while gamblers also take some risks they shouldn't take. While adding the term 'speculation' to the mix might have some value, it probably adds more confusion than clarification, so I prefer to leave it out and focus on just 'gambling' and 'investing'.

Beyond the Dictionary

Of these the foremost are: If you expect to double your money quickly, whatever you're doing is probably gambling, even if it happens on Wall Street rather than in Las Vegas. Aren't the odds stacked against them? Many religions frown on gambling but they don't seem to mind church bingo.

I spent one summer during college working in Arizona, and I drove up to Nevada most weekends to play blackjack.

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The major factors accelerating this trend are that gambling is strictly regulated and not ubiquitous, and that the odds are usually better in investing than in gambling. But this is largely a by-product of having the odds in one's favor.

Governments generally frown on gambling unless, of course, they're getting the lion's share of the profits, such as with state lotteries. In general, I'm in favor of less regulation and more disclosure for both activities described as gambling and those described as investing, but I'm no expert on the subject casino recruitment uk a thorough discussion is beyond the scope of this essay.

In The Intelligent Investor he said: