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Free Money Finance

The Poor Gamble More than the Rich

Posted: 04 Jan 2017 02:05 AM PST

Here's an interesting piece from Rich Habits which says the poor gamble more than the rich. Some details:

6% if the rich gambled regularly on the lottery vs. 77% of the poor and 16% of the rich gambled on sports at least once a week vs. 52% of the poor.

Someone (was it Dave Ramsey?) used to say that the lottery was a tax on people who were poor at math. Really, all gambling is. The odds are not in your favor. For each dollar you wager, you get back less than $1 on average. In many cases, much less.

I prefer to invest $1 and get $1+ back. I particularly like index funds and real estate but there are other ways to grow your money of course.

The poor seem content to take their money and lose it while the rich are content to take their money and grow it. Seems pretty intuitive, doesn't it?

I've never been a big gambler. In fact I can't remember if I've ever bought a lottery ticket or gambled at a casino. I have bet on games, but that was usually "$1 a game" with my dad around college bowl season.

If you look at gambling as entertainment, money you "spend" to have fun, then there is some justification for it. But most people go into it expecting to win more than they put in. This desire to get rich quickly is often their undoing. After all (again), the odds are not in favor of making more than is put in.

What's your take on gambling? Is it harmless entertainment or something that's keeping people from becoming wealthy?


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