Casinos have been part and parcel of urban life for a long time. So it comes as no surprise that they have deep-rooted financial impacts in the economy by both online as well as brick-and-mortar casinos. There are a lot of casinos in different parts of the world, and studying their revenue and social impact, it is possible to deduce both positive and negative effects due to their existence and operation.
Positive Impacts of Gambling At New Casinos
- Job Creation: A brick and mortar casino, once established, offers a large number of jobs, especially blue-collar ones. Casinos usually come with a minimum of 4-star rating, so it needs cashiers, waiters, cleaners, maybe even masseurs. Even in online Casinos, a large number of coders are required to maintain the confidentiality and security of the website and to maintain a robust firewall to protect against piracy and possible money laundering. So a large number of jobs are created due to casinos.
- Economic Development: With an increase in jobs, the per capita income of each individual increases. This increases the purchasing power of people in the economy, and a higher percentage of per capita income. This ultimately leads to positive economic development and betterment of the state’s financial situation.
- Taxpayer Benefit: Casinos are considered a luxury asset by governments. Therefore, they are taxed higher than other people, and hence the income to the government is much more significant. This tax money can be used by the government to provide a better lifestyle to the people in the state.
Negative Impacts of Gambling at New Casinos
- Socio-Economic Costs: Even though there have only been a few reported, the general public’s reaction to a new casino in town is mostly unwelcoming. They tend to believe that crime rate alcohol and drug abuse and other criminal activity might be increased due to the introduction of a casino. Even though this is because of widespread propaganda and movies, it cannot be overlooked. It may increase the general socio-economic cost, including the people’s discomfort, and in that way the real cost as well.
- A Decrease in State Lottery Sales: State lotteries contribute a lot to the government. With the increased number of casinos, this tends to decrease because casinos offer a large number of gambling options with much higher stakes and a much bigger payout than state lotteries. This means that the state has a decrease in revenue due to casinos.
- Increased Use of Public Services: Anyone who has been to a casino knows how much electricity is required to run it, and one which runs for 24 hours a day, seven days a week. The water required is also imaginable because of the sheer number of people who come and go all day and all night. Other public services like the police are also required because there may be law enforcement issues in places like these.