The differences between gambling and gaming become clear when we define the two terms. Gambling refers to wagering money on events with an uncertain outcome. It should always involve three elements: wagered money, an element of chance or risk, and the possibility to win a prize. Gaming refers to playing interactive computer and video games.

Most online video games include at least some elements of chance (similar to gambling), and some forms of gambling - say race betting and poker - include elements of skill and judgement. Although the pokies are called gaming machines, playing them is gambling: it involves money, and whether you win or lose is pure chance.