How Casinos Effect Country’s Economy



Since the establishment of casinos, they have been noted to expand significantly. There are thousands of casinos established in both land-based and online arenas all over the globe such as, and new ones keep arising with nearly every waking day. This growth factor is mainly owed to how betting and gambling has been readily accepted by the society as a form of leisure activity.

This lucrative industry has affected the economies of the regions where they are located in various ways. Some impacts have led to the improvement of their respective societies, while in some ways they have caused retrogression. However, a lot of attention is directed to its negative impacts. In most cases, betting and gambling activities are considered quite dangerous forms of leisure activities. Nevertheless, casinos have been noted to have a couple of positive impacts if its implementation is done in the right way. In this article, we will assess the economic impacts – both positive and negative – of the establishment of casinos on the economy.

Positive Impacts

Some of the positive effects are;

1. Generation of Revenue

This is one of the biggest positive impacts casinos have on the economy. The casino industry is one of the biggest recreational industries in the world. Therefore, governments have been able to earn billions of dollars in revenue from these establishments. This has created a huge funding for various government projects. Casinos generate revenue in various ways including;

  • Gross revenue
  • Federal taxes and revenue savings
  • Taxes to local governments
  • State taxes, regulatory fees, and revenue sharing

The tax benefit of the casino industry cannot possibly be overstated since it has positively impacted both citizens and governments in equal measure. The money obtained has been used to pay off state debts and eliminated the need for government to raise taxes on other goods and services.

2. Availability of job opportunities

The establishment of casinos has created a lot of job opportunities for locals. According to reports, they have showcased a higher employment rate than some of the biggest agencies such as the airline industry. Especially in struggling cities, casinos have provided a significant amount of job opportunities, which has worked to improve the lives of citizens. In most cases, the rate of unemployment has been noted to drop with the establishment of a new casino.

3. Improved public services

With the amount of revenue that is collected by state government from casinos, it is only natural for the improvement of public services to occur. The enhancement of public institutions that have been impacted by this revenue include;

  • Hospitals
  • Schools
  • Roads, etc.

These improvements have been used by most governments as a reason to avoid the closure of most houses. In other areas – especially where native casinos are located, or bingo and raffles are the most popular games – casinos have been noted to fund charitable causes that have been used to improve the lives of the community locals.

4. Improved infrastructure value

The construction of new buildings that host casinos improve the value of the regions they are located. The introduction of such physical assets to a community means that other establishment upgrades are soon to follow e.g.

  • Electricity
  • Sewage systems
  • Roads, etc.

These assets are necessary to ensure that the casino operates smoothly in the area. The increase in the value of infrastructure also draws more investors to bring their businesses closer to the establishment to compliment the services that are offered.

Negative Impacts

1. Compulsive Gambling

This is one of the biggest negative effects that are associated with casinos. Problem gambling is as much a negative impact on the economy of a state as it is in personal and social lives. The consequences of being a pathological gambler range from disruption of personal relationships to difficulties in clearing financial debts. When it comes to its effect on the economy, most compulsive gamblers have been known to lose their jobs to the habit. Therefore, the level of productivity goes down, and the economy suffers. Also, they cause the state and other institutions significant amount of money in the establishment of programs directed at resolving the physical, emotional, and financial problems they face.

2. Increased crime rates

The establishment of casinos has increased the rise of crime in various ways, but two main forms that stand out from the rest.

  • The first is the involvement in crime by pathological gamblers. Due to the financial problems that come with this gambling disorder, most suffering from it turn to theft to clear their debts, keep bookies at bay, and add more money to their limited resources to gamble some more. Research indicates that most gamblers who have had a run in with the law have committed crimes such as money laundering, robbery, forgery, fraud, and theft.
  • Casinos also provide an arena for the occurrence of money laundering. Since the true measure of money going in and out of houses cannot be measured in a definite figure, most crime syndicates take advantage of this loophole to clean up their money.

3. Unfair competition

In areas where casinos have been built, they have brought harm to other industries in the area. For instance, most of them today incorporate restaurants and guest rooms within them. Therefore, clients who gamble there do not need to go out to find a food joint or a place to sleep. This presents unfair competition to hotels and restaurants that are built in the area.

Conclusive Comments

With the pros and cons that are associated with casinos, it is hard to establish whether or not there are good or bad for the economy. Assessing the factors is quite hard, but either way, we can agree the entertainment they present is thrilling.


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