If you want to gamble, then do it through an investment account rather than a casino.

When we think of gambling, we often think of high risk situations where the pay-off is great.  If you win, you win big.  If you lose, you go home empty handed.

A number of companies on the market are taking part in very risky ventures and stand to gain a lot, if successful.  If they are successful their shareholders will win big, too.  If they fail, then you’ll be bringing home little to nothing.

What’s a better bet?  Going to a casino for your high risk ventures or to the stock market?  The clear choice is the stock market.  Why?

When you gamble you can only write-off losses against your gambling winnings.  If you win $100 this year you can write off the $50 in losses you had in the year as well.  If you win $0 this year, then you cannot write off the $50.

When you lose investing in a stock or fund, you can write off the loss when tax time comes regardless if you have or have not made a profit.  You don’t have to win to get the write-off as you do when you gamble.

Stock market losses are looked at in a more favorable light than casino/gambling losses by the IRS.

Note – To enjoy the benefit of a write-off you must have some form of income to write-off against.  Since I have no idea about your tax situation, consult your tax adviser, to see how this strategy might benefit you.