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This has brought about morally questionable issues, such as states' using marketing firms to increase their market share, or to develop new programs when old forms of gambling do not raise as much money. The american gaming association breaks gambling down into the following categories: card rooms, both public and private; commercial casinos. Gambling creates a risk where none exists. Gambling provides the opportunity for gains or losses. Insurance mitigates an existing risk of loss. The buyer of insurance has no opportunity for gain. The opportunity is to be made whole. Edit: i suppose that i have provided the practical difference. Insurance is not gambling. Ironically, not getting insurance is gambling with the financial futures of ourselves and our loved ones. Given the little insurance planning most singaporeans have embarked on, many people may be at "gambling" without realizing it. Gary tay blogs at reflections of an independent adviser. Under texas law, ( penal code §47. 02) gambling is considered a criminal offense if someone: makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest. So, an explicit statement is added saying that regardless of any other factor, insurance isn’t to be considered gambling. As for the difference between the two and why insurance is allowed while gambling isn’t. More accurately not having insurance is a form of gambling. You are taking a somewhat probable winnings (not paying premiums) against unlikely but huge losses. It's like putting $10,000 on a roulette wheel for a $100 payout if it doesn't land on 15
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