What is Gambling
Gambling, or placing a bet, involves playing a game of chance or skill where something valuable such as money is put at risk for the possibility of a prize. People usually gamble with the hope of winning more than they bet, such as buying a lottery ticket for the chance at a multimillion-dollar jackpot. While casinos and racetracks are places where people often gamble, it also happens in everyday settings, including convenience stores, community events, sports venues, between friends, and on online platforms. 14, 23
How do people gamble?
Lottery Games
A state-run lottery allows people to purchase tickets for a chance to win cash prizes.
Instant Games (“Scratch-Offs”)
Sometimes called “scratch-offs,” these tickets are part of a lottery system and reveal symbols or numbers when scratched, offering immediate results and cash prizes.
Charitable Games
Bingo, raffles, and pull-tab tickets that are organized or sold by licensed nonprofits or charities to raise funds.
Pari-Mutuel Betting
Betting on horse races through a system called pari-mutuel wagering, where all bets are pooled and winnings are divided among those who placed winning bets.
Sports Betting
Sports betting allows people to place bets on the outcomes of professional and collegiate sporting events. There are different types of bets - see the Understanding Terms section to learn more.
Fantasy Sports
People create virtual “fantasy teams” made up of real athletes to compete against other fantasy teams. Winners are determined by the performance of those athletes in real games during the chosen time period.
Casino Table Games
Blackjack, poker, roulette, craps, and other table games traditionally found on a casino gaming floor.
Casino Gaming Machines
Slot machines, video poker, and similar electronic gaming machines traditionally found on a casino gaming floor.
Electronic Gaming Devices / Skill Games
Electronic machines that function like slot machines but are not operated by a licensed casino. These may be located in bars, gas stations, convenience stores, or similar locations.
Sweepstakes / Social Casinos and Sportsbooks
These are online platforms that mimic gambling websites and apps such as casinos or sportsbooks, but operate differently from traditional, real-money gambling sites. They are typically “free to play,” providing users with free virtual currency, often through daily bonuses. Players use these virtual coins or credits to play casino-style games (like slots or blackjack) or place sports bets. While they do not require users to wager real money to play, they typically allow users to purchase additional virtual currency to place bets. They are not regulated and licensed in the same way that traditional casinos and sportsbooks are. 1
Understanding Common Types of Sports Betting Terms
Sports betting involves more than just picking who will win or lose – there are many different ways to place a bet. Being familiar with the most common types of bets can help in understanding gambling behaviors and their risks.21
Common Types of Sports Bets
A single bet on a team to win outright. It can be based on either the simple outcome (moneyline) or by factoring in the number of points by which a team wins (spread).
A single wager linking two or more bets. To win, every individual bet must be won. Parlays offer bigger payoffs, but a single wrong outcome means you lose it all.
A bet that focuses on specific game events that don’t necessarily influence the final result, such as how many touchdown passes a quarterback throws, who scores first, or whether the game goes into overtime.
A long-range bet placed on an outcome that takes place later in a season or event, for example, betting on the next champion, MVP award winner, or other season-long competition.
A special parlay where the bettor adjusts the point spread in their favor, making each leg easier to win. The trade-off is a lower payout compared to a regular parlay. They typically include multiple games and allow point adjustments, such as adding six points to each selection on a football or basketball bet.
A teaser bet can be compared to moving the goalposts closer when you’re kicking a field goal, making it easier to score, but since it’s less risky, the reward isn’t as big.
What is the difference between gaming and gambling?
Gaming vs. Gambling
Gaming is when someone plays a video game on a console or mobile device. Some of these games have gambling-like components, such as loot boxes, where individuals have an opportunity to buy something of value in the game with real or virtual currency.
Loot boxes mimic gambling because they work like slot machines. The player risks something they value for a random prize with no idea whether the payout will be worth it.
This can make it hard to tell the difference between gaming and gambling. Some people are concerned that gambling-like features in video games may lead to gambling, especially among young people.
References
- American Gaming Association. (2024, August). Regulatory vigilance critical to ensure “sweepstakes” don’t threaten consumers and undermine gaming regulation [PDF]. Legal Sports Report. https://www.legalsportsreport.com/wp-content/uploads/2024/08/AGA-Sweepstakes-Memo-1.pdf
- American Gaming Association. (2025). State of Play: Gaming map and legal landscape. https://www.americangaming.org/research/state-of-play-map/
- American Psychiatric Association. (2022). Diagnostic and statistical manual of mental disorders (5th ed., text rev.).
- Blaszczynski, A., & Nower, L. (2002). A pathways model of problem and pathological gambling. Addiction, 97(5), 487–499.
- Custer, R. L., & Milt, H. (1985). When Luck Runs Out: Help for Compulsive Gamblers and Their Families. Facts on File.
- Evergreen Council on Problem Gambling. (n.d.). Responsible gambling guidelines. Retrieved November 5, 2025, from https://www.evergreencpg.org/responsible-gaming/responsible-gambling-guidelines/
- Gambling Industry News. (2025). U.S. Lottery – A state-by-state guide. GamblingIndustryNews.com. https://gamblingindustrynews.com/usa-lottery/
- Kentucky Center for Statistics. (2024). Kentucky Incentives for Prevention (KIP) statewide report. https://www.kipsurvey.com/kip-reports-publications
- Kentucky Council on Problem Gambling. (2022). By the numbers: Kentucky gambling behavior, prevalence, and treatment estimates. https://kycpg.org/wp-content/uploads/2022/09/By-the-Numbers.pdf
- Kentucky Council on Problem Gambling. (n.d.). Referral resources for individuals and families. Find a Counselor – Kentucky Gambling Help
- Kentucky Department of Charitable Gaming. (2024). Licensing and Regulations. https://dcg.ky.gov
- Kentucky General Assembly. (2023). House Bill 551 (Regular Session). Bills - Legislative Research Commission
- Kentucky Horse Racing Commission. (2024). Pari-Mutuel Wagering Overview. https://khrc.ky.gov
- Kentucky Lottery Corporation. (2025). Fiscal Year 2025 annual report. https://klcannualreport.my.canva.site/fy25
- Legal Sports Report. (January 5, 2026). US Sports Betting Revenue & Handle. https://www.legalsportsreport.com/sports-betting-states/revenue/
- Let’s Gamble USA. (2024). Kentucky gambling laws & legal age to gamble. Let’s Gamble USA. https://www.letsgambleusa.com/kentucky/gambling-laws/
- National Collegiate Athletic Association. (2023, May). Sports wagering survey of 18–22 year olds. NCAA Media Center. NCAA releases sports wagering survey data - NCAA.org
- National Council on Problem Gambling. (2024). NGAGE 3.0 Key Findings. Washington, DC: National Council on Problem Gambling. https://www.ncpgambling.org/wp-content/uploads/2025/06/NGAGE-3.0-Key-Findings-FINAL-FOR-DISTRIBUTION.pdf
- National Council on Problem Gambling. (2024). NGAGE Survey Dashboard. Retrieved from https://www.ncpgambling.org/training/ngage-survey/ngage-dashboard/
- National Council on Problem Gambling. (2025). Problem Gambling Fact Sheet. https://www.ncpgambling.org/wp-content/uploads/2025/01/PGAM-2025-Problem-Gambling-Fact-Sheet.pdf
- New York Council on Problem Gambling. (2023, August). Sports betting glossary of terms. https://nyproblemgambling.org/wp-content/uploads/2023/08/Sports-Betting-Glossary-of-Terms.pdf
- NKyTribune. (2025, January). Kentucky Council on Problem Gambling sees increase in helpline calls amid greater awareness. NKyTribune. https://nkytribune.com/2025/01/kentucky-council-on-problem-gambling-sees-increase-in-helpline-calls-amid-greater-awareness/
- Responsible Gambling Council. (n.d.). What is gambling? Responsible Gambling Council. https://responsiblegambling.org/for-the-public/about-gambling/what-is-gambling/
- SweepCasinos. (2025). Sweepstakes casinos in Kentucky: Free online casino play. https://sweepcasinos.com/state/kentucky
- USA Casinos. (2024). Kentucky Casinos. https://usa-casino.com/usa-casinos/kentucky-casinos/