More Singaporeans Turn To Gambling As Investments

In the recent survey of 2,300 Singaporeans conducted by the Ministry of Community Development, Youth and Sports, it was found that 60 per cent among those earning under $1,000 gambled, up from 50 per cent in 2005.

Three-quarters of respondents started gambling as early as 24 or younger and most view gambling as a leisure activity. An increasing segment of the population is addicted to gambling, and may become ‘pathological’ gamblers. These are worrying trends as Singapore prepare for the launching of two integrated resorts with casinos by early 2010.

Worldwide, the casino gambling industry is estimated at a $50 billion business and growing. Why is it that gambling is so popular and addictive? Everyone, from the upper-class to those living in poverty are engaged in it.

To be sure, psychological and financial meaning of gambling differs between the economic classes. Higher income people view gambling as an entertainment and a means of socializing while the poor looks at it as a form of investment.

The latter has virtually no access to lucrative investment products of the exclusive rich-men’s club and gambling is seen as the only serious chance of transforming their lives. To them, it takes Lady Luck to smile once and they will have it made for life.

It is a well-established fact that people’s infatuation with gambling does not take into account statistics to determine the odds of winning, else few will be involved. Human behavior dictates that the heavy odds present attractive challenges instead of daunting prospects.

Adam Smith, the father of modern economics, attributed the gambler’s motivation to “overwhelming conceit which men have of their own abilities and their absurd presumption in their own good fortune.” His words described aptly the overconfidence of men 200 years ago and is equally applicable today.

To cure you of gambling addiction, I do have a useful suggestion here:

Whenever you feel like placing bets on 4D or Toto, put the money which is supposed to go to Singapore Pools into your piggy bank, at the end of one year, break open the bank and that is your first prize. :)

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10 Comments

Filed under Economy, Entertainment, Stocks, gambling

10 Responses to More Singaporeans Turn To Gambling As Investments

  1. Hi Jeflin,

    Stumbled on your blog from Panzer’s website, thanks for highlighting the problem of gambling among youths, which I must say is a growing pervasive problem here.

    I also maintain a blog but it’s more on value investment rather than being market-focused, though sometimes I do blog about economic issues as well. Do visit if you have the time, thanks !

    Regards,
    Musicwhiz

  2. Hey Jeflin, nice site btw, thanks for stopping by http://www.HedgeAgainstSpeculation.com

  3. With casinos now opening throughout Asia (Singapore, Vietnam, Macau), gambling addiction there will just continue to get worse.

    Slot machine addiction is the worst form of addiction, and is known to be the “crack-cocaine” of gambling addiction.

    I have experienced this first hand. I truly do believe that gambling addiction is becoming the new addiction of our times. It is very scary and very sad.

    Thanks for your post. :)
    Michelle Tee

  4. oh i’m surprise that there are people who like my blog.. thanks =)

    i see only 2 months in archive, this is a new site or you’ve transfer from another blog??

    and your blog is about investment huh?? i can see that you’re having a good start actually.. nice posts but too bad i cant totally understand haha as i know nuts about investment… if this is your interest then by all means blog/do it.. Keep it going!! =)

  5. @ Musicwhiz -
    Thanks, I dropped by your blog and it contains lots of useful information. In fact, it is one of the better local investment blogs. Keep it up.

    @ Richard -

    Thanks for the kind comments. Your site is not too bad either. :)

  6. @ Michelle -

    Well, gambling addiction is really bad and can cause harmonious families to break up.

    But everybody wants to get on the casino bandwagon. The governments just got to deal with the social problems as they come along.

    @ joshuaongys -

    Yes, this is indeed a new site which I started.

    If you are new to investments, you can actually read up (not only on this blog) other library or online resources, to prepare yourself for the day when you get interested in the stock market.

  7. akt

    The constant exposure to betting companies’ advertisements like Toto and 4D has an indirect influence over a person’s decision to keep the money in the pocket or just throw all up for bits of paper.

  8. Come to think of it, gambling is a win-win investment… only that an investor for these kinds of amusements has to have massive capital.

    Thanks for sharing your insights. :)

    Ladys last blog post..China to relax property restrictions

  9. @ AKT -

    The exposure could be part of the reason but even without advertising, I believe people willl still make a beeline to the TOTO and 4D stands.

  10. @ Lady -

    Gambling is not an investment and neither is it win-win. But these days, playing the stock market seems like gambling too.

    jeflins last blog post..Prudence Is The Way To Go

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