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When someone buys a stock in a company they become a part owner of the assets that business requires to operate each day to complete their mission statement. For instance, let’s say Bob buys $1,000.00 worth of shares in Wal-Mart. For Wal-Mart to make a profit they must keep their shelves stocked with a selection of goods to sell to their customers. One way this business can keep their shelves stocked is that they could borrow the money from a bank and pay interest on the money to keep the goods in their warehouses so that they have available products for the stores. The interest would be part of their overhead. This is the most expensive way. Another way is for them to sell stocks, which make the stock purchaser a co-owner of the company’s assets. Each year Wal-mart divides its annual profits among it co-owners as dividends based on the percentage of the company they own. If the company loses money in a year, then the co-owners not only do not have profit to share, but their initial investment is worth less because the company assets are less because it did not make a profit that year.
Wise people make investments so that their savings will provide income as well as their labor each year. Along with every investment is risk. The word “risk” is defined by Dictionary.com as: “to take/run a risk, to expose oneself to the chance of injury or loss; put oneself in danger; hazard; venture.” When I invest a portion of my savings, I have to choose how safe or how risky I want to be with these funds set aside to earn me additional money. Experts often say, “The higher the risk, the higher potential there is for profit.” The reason is that when I become a co-owner of a new and unknown company through a stock purchase, this company may or may not succeed. While the company is new, the stock prices for this company are low. If after five years that company makes large profits each year, however, not only will I receive a large annual dividends check, but the stocks I purchased will increase in value because of the company’s success and proven track record as well as asset growth.
So the potential for a person who has done extensive research to invest a portion of their savings and have it earn a fair and just but large return is possible. Other investors may choose an insured bank to allow their funds to earn a small fixed rate of return (Matt 25:27), but without the possible losses based on a few businesses performance. So, this investment has less potential for return, but also less potential for a loss. Thus, one can say a bank is less “risky” than being a co-owner of a company through stock purchases. But the bank deposits (Luke 19:23) also involve risks. Embezzlers’ have taken funds out of peoples accounts in such a way that the account owner could not prove that they did not make the transactions themselves. Savings and Loans verbally claimed to customers that they were federally insured when they were not and some people only received 5% of their savings back from the court settlement when these institutions failed. This happened to one of my uncles in Virginia.
The USA Federal Reserve controls the interest rates, banking rules, and the value of the dollar. A major failure of the federal government could result in a total loss of funds even in an insured bank. This has happened in other countries during the twentieth century. Thus, all investing results in a certain amount of risk. A wise person understands this and still uses funds to earn additional money as well as their physical labor.
However, some people will use English terms loosely and assume words like “risk” and “gamble” are identical terms when they are not full synonyms. Dictionary.com lists the first and major definition of “gamble” as: “to play at any game of chance for money or other stakes.” It also lists “to lose or squander by betting.” Another definition is listed as “to take a chance on; venture; risk.” This last definition is not the technical use of the term, but is one possible nuance when the term is used in a figurative sense in certain contexts. However, when you come to the act of “gambling,” it is not the same as investing a portion of savings by becoming a co-owner in a company with the hope of earning a profit with that investment. The Legal Dictionary defines gambling as the following action: “to risk something of value for the chance of winning a prize.”
The Bible encourages us to invest our time, talents, treasure, and truth in worthy causes and individuals. When we invest our money as stewards before the Lord in a legitimate businesses and business services that help other humans, we are involved in an enterprise of blessings to others. Likewise, the money we earn is a share of the profit earned from the business venture. We can do this as an act of faith in God (Rom 14:23).
When one wins cash or possessions by gambling, where does the money or assets come from that they receive? It comes from the poorest, least educated, lowest IQ members of society. Moreover, it did not come from their savings. These funds are part of the money their family needs in order to live each day. When someone owes $500.00 rent and then cashes their check for $800.00 and looses the entire amount gambling in a poker game, betting on horses or sports, online gaming, slot machines, poker machines, or even in a state run lottery, whose money did they lose? The money owed for rent or to a utilities company was not additional savings. This is money they owed to someone else. Dictionary.com defines stealing as follows: “to take (the property of another or others) without permission or right, especially secretly or by force; to appropriate (ideas, credit, words, etc.) without right or acknowledgment; to take, get, or win insidiously, surreptitiously, subtly, or by chance.” Did the gambler get the permission of the landlord or utilities company to use their money to play a game of chance? If not, when the money is lost is has been stolen from the rightful owner and lost without their permission.
But a gambling addict will keep trying to win money that was collected from other less intelligent poor people that often was not really their money (it belonged to their creditors), so that the gambler can receive funds for which he did not work or earn by capital investments (2 Thes 3:10). Millions of lottery and other gambling funds were taken from children who needed food, clothing, shelter, and medicine as well as needy adults by someone with blind faith in the false gods of “luck” and “chance.” They had no reserve funds with which to replace this money. Millions of gambling funds come from people who have declared bankruptcy and cheated their creditors out of large amounts of money. Instead of paying back what they owe, they try to get riches without hard work and honest labor. Gambling is not a biblical way of receiving funds (Eph 4:28). When you receive money that was owed to a landlord, utility company, or child needing food —you are receiving stolen funds. This is immoral and unethical even though some gambling is legalized by certain state and local governments (Exod 20:15). The state does not make sure that these funds were not owed to others or even that they were not acquired by an armed robbery. In lottery states, if you have the cash in your hand, the conveyance store clerk will sell you the lottery ticket if you are old enough to buy them.
What mental attitude must one have to gamble? They must long for something that belongs to someone else. These assets are also resources for which they want to obtain without working, trading, investing, or saving. The Bible calls this mental attitude “coveting.” The Bible says: "You shall not covet your neighbor's house. You shall not covet your neighbor's wife, or his male or female servant, his ox or donkey, or anything that belongs to your neighbor." (Exod 20:17 TNIV). What mental attitude must one have to become a co-owner of a company that might not succeed? It requires courage. They are willing to risk losing a small portion of their savings so that they can share in the profit this company will make if it succeeds. However, some investors only invest in companies with a long proven track record, and so their stock prices are already high and the investor will only earn a dividend on their capital investment into that company. Neither of these investment plans involves “coveting” the belongings of others or stealing from unpaid creditors or poor children. The dividends earned are profits from honest business ventures.
Jesus said,” But if God so clothes the grass of the field, which today is alive and tomorrow is thrown into the oven, will he not much more clothe you, O you of little faith? 31 Therefore do not be anxious, saying, 'What shall we eat?' or 'What shall we drink?' or 'What shall we wear?' 32 For the Gentiles [Pagans] seek after all these things, and your heavenly Father knows that you need them all. 33 But seek first the kingdom of God and his righteousness, and all these things will be added to you. 34 "Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Sufficient for the day is its own trouble” (Mat 6:30-34 ESV).
Are you walking by faith in the God of the Bible to meet your daily needs if you are spending God’s money on lottery tickets with a four million-to-one odd that you will win a prize of money taken from the poorest of the land? What kind of stewardship is that (Luke 12:42-48)? “Now without faith it is impossible to please God, for the one who draws near to Him must believe that He exists and rewards those who seek Him” (Heb 11:6 HCSB). Gambling is the opposite of walking by faith. Please do not behave like the pagan Roman soldiers who gambled for Jesus’ seamless tunic. The Bible records that the soldiers “said to one another, ‘Let's not tear it, but cast lots for it, to see who gets it.’ They did this to fulfill the Scripture that says: They divided My clothes among themselves, and they cast lots for My clothing.3 And this is what the soldiers did” (John 19:24 HCSB). But do chose to follow Solomon’s advice which requires wise, careful, and well researched investing. “A good man leaves an inheritance to his grandchildren, but the sinner's wealth is stored up for the righteous” (Prov 13:22 HCSB). “Wisdom, like an inheritance, is a good thing and benefits those who see the sun” (Eccl 7:11 TNIV).
So, is investing in the stock market the same as buying lottery tickets or playing a high stakes poker game? The answer is: absolutely not. Is risking one’s life on a foreign mission field for the gospel of Christ the same as playing a slot machine in Las Vegas? Again, the answer is: absolutely not. “Chance” and “luck” are not enthroned on the mission field by a Christian missionary. There you can observe a dependent obedient trust in the living God being worked out in real life. This is a risk worth taking because the motive is to bring glory to the Sovereign God of the universe, namely, Yahweh. He is worthy of risking our lives and fortunes. Furthermore, excellent leaders and wise men are willing to take risks for the right causes. However, attempting to receive stolen money at four million-to-one odd is not worth the gambling risk, especially for one who is assigned to be a steward of God’s money (e.g., a Christian, 1 Cor 4:7) and is forbidden to be greedy (Col 3:5) or covetous (Eph 5:5).
