28 Apr WHEN IS GAMBLING ALLOWED?

When I was in
yeshiva high school
many decades ago,
some students
occasionally went
to the racetracks to
watch the horse races
and bet on them.
They bet very little;
they really just went for the fun and bet so they
had a horse to cheer for. Was this halakhically
forbidden? It was certainly a waste of time
and an unsavory place for yeshiva students.
Beyond that, was the gambling for fun
forbidden? If we can gamble on stocks, why
can’t we bet on horses? Today, the Internet
has made gambling much easier and more
common. You don’t have to pile into a car and
drive to some strange place; you just have to
take out your phone. The questions are more
important than ever.
I. Why is Gambling Forbidden?
The foundational discussion regarding
gambling appears in the Talmud (Sanhedrin
24b), which lists “one who plays with dice”
(mesacheik be-kubiya) as disqualified from
serving as a witness. The Sages offer two
primary reasons for this disqualification:
1. Asmakhta (contingent commitment): Rami
bar Chama argues that gambling involves a
winner stealing from the loser because each

participant agrees to play only under the
mistaken assumption that they will win. Since
they never truly intend to lose their money,

the transfer of funds is considered non-
consensual and is classified as theft.

2. Yishuvo Shel Olam (societal contribution):
Rav Sheishes disagrees, holding that gambling
is not technically theft. Instead, it is forbidden
because the gambler does not contribute
to society through productive work. His
livelihood from gambling contributes nothing
to society.
II. Gambling for a Living and Gambling
for Fun
The status of a gambler often depends on
whether the activity is their profession or a
recreational pastime. A professional gambler
is unanimously disqualified from serving as
a witness because he fails both conditions of
asmakhta and engaging in an unconstructive
profession. This would include someone who,
for example, plays in poker tournaments for
a living. Halakhah clearly frowns on such a
livelihood.
What about someone who has a regular job
and plays in poker tournaments for side
money and/or fun? Following the Shulchan
Arukh (Choshen Mishpat 370:3), Sephardic
Jews consider all gambling to be a form of
theft (asmakhta) and are forbidden from

gambling even recreationally. This includes
a prohibition on buying lottery tickets.
Ashkenazim, led by the Rema (Choshen
Mishpat 370:3; 207:13), follow Rav Sheishes
and allow occasional gambling for fun under
specific conditions. Namely, in addition
to the player having a separate livelihood,
1) the game must be based entirely on luck
rather than skill, 2) the money must be placed
physically on the table and 3) the table must
be owned by all players. These conditions
on the leniency would seem to forbid poker
tournaments. They would also forbid any bet
on a website that is owned by the host rather
than the counterparties (bettors). Playing
games of chance without money avoids this
problem. (I discuss the lottery in greater
detail in the chapter on Powerball in my book,
Search Engine: Volume One.)
III. Productive Gambling
Isn’t investing a form of gambling? If I buy a
stock or any investment, I am gambling that
its price will rise. Halakhah distinguishes
between taking risks for a productive goal and
taking risks for mere entertainment or profit.
Certain forms of risk are inherently part
of “societal contribution.” Buying stocks
is a legitimate transaction where the buyer
becomes a part owner at the time of purchase,
accepting the risk of a potential plunge in
value. This is not a gamble but an investment
in the profit potential of a business.
Many investments are done as part of a
risk management strategy. If your business
is sensitive to interest or currency rates,
you might choose to hedge that risk with
derivatives. If your business is highly
concentrated in one industry, you might
invest in other industries in order to
diversify and reduce your risk. These types
of “gambling” are done for productive
reasons and pass both criteria for gambling
— asmakhta and yishuvo shel olam.
At the time of the writing of this article,
some bets on the Polymarket homepage
include: US and Iran peace by April 30,
May 31 or June 30, 2026; Which company
has the best AI model at the end of April
2026? Anthropic or Open AI; What will
WTI crude oil hit in April 2026? >$100,
<$90. There are many other bets available.
If both sides of the bet have legitimate
business purposes to hedge their risks
with these bets, these would be examples
of productive gambling without asmakhta.
If either side is just betting for fun, these
would be unproductive and forbidden.
It can be argued that some types of
investment trading provide liquidity to the
market while other types of trading cause
irrational market swings and herd behavior.
I leave it to economists to determine which
types of trading provide societal benefit
and which do not. The permissibility of day
trading as a profession would depend on
this evaluation of whether it constitutes an
investment or provides a societal benefit.

IV. Constructive Gambling
Historically, some authorities permitted
watching or participating in risky activities
like horse racing or jousting if the goal was
to learn a necessary skill (Responsa Mahari
Bruna, no. 71). In these cases, the activity
served a productive societal function. I have
a friend whose training in stock trading
consisted of a week of poker tournaments.
In his case, he learned important skills from
the gambling that helped him become a better
businessman.
Many authorities permit lotteries for tzedakah
because the rule of asmakhta does not apply
to tzedakah. Participants feel comfortable
relinquishing their money knowing it supports
a holy cause, even if they lose. Educational
incentives, such as raffles for children who
come to learn Torah, are often permitted, as
the participants do not truly care if they lose
and the goal is the fulfillment of a mitzvah.
But not all authorities permit it. Rav Gedaliah
Felder (20th cen., Canada) opposed bingo
games for tzedakah (She’eilas Yeshurun, no.
3). (See also Rav Chaim Jachter, Gray Matter,
vol. 1, pp. 125-132.)
Despite technical legal permissions for some
cases, halakhic authorities overwhelmingly
condemn gambling for entertainment.
Various sixteenth century authorities
discuss communities that instituted a local
decree (cherem) against gambling (e.g.
Responsa Maharshdam, Yoreh De’ah, no.
84; Responsa Re’em, no. 13). Even setting
aside the question of proper leisure activities,
gambling that might be technically permitted
(specifically bingo and card games) is
still described by Rav Moshe Feinstein as
“disgusting activities” (Iggeros Moshe, Orach
Chaim, vol. 4, no. 35).
Therefore, the office fantasy football league
should be avoided, especially since there
is some skill involved. Super Bowl, World
Series, Olympics and similar sports bets are
likewise improper if not outright forbidden.
Even casual office bets about who will get
promoted or who will give birth first should
be avoided. And do not go to the horse tracks.
None of these are productive activities.
The prevalence and social acceptability of
gambling is another example of the decadence
and ethical collapse of contemporary society.
Frum Jews must be above this behavior.
There are better ways to