The Economic Impact of Casino Gambling - Essay Example

The Economic Impact of Casino Gambling Affiliation: The relationship between economic performance and casino gambling can be argued for and against. It is important to highlight that many casino gambling points are licensed by the state or local governments, giving casinos a legal base for operation. The economic outcome of casino gambling is dependent on the market structures prevailing in the economy where casino gambling is practiced. Monopoly and oligopoly market structures often result in losses to states and local governments when casino gambling is legalized in such market contexts.

Person 1 argues in favor of casino gambling. Person 1 says that casino gambling is licensed, monitored and controlled by the local government or state. As a result, earnings made by casino operators are taxed, over and above payments made for license fees. The local government or the state further uses the tax revenue to run public projects that are healthy for economic growth and development. Fiscal and social costs are the second impact that was highlighted by Person 2. He linked casino gambling to the realization of externalities in the society.

While there are positive externalities that relate to gaming and entertainment, Person 2 pointed out a number of social costs in relation to casino gambling. These are: crime, business and employment costs such as lost time on the job, bankruptcy, suicide, illness, direct regulatory costs, family costs such as child neglect and abuse, and abused dollars (Walker, 2010). Person 3 considered the extent to which casino gambling complements other sectors in the economy. Many casino gambling points attract locals and foreigners, many of whom are domestic and international tourists.

Casino activities therefore boost tourism, and further extend the underlying benefits to sectors that deal with manufactured products, transport and communication among others. In other words, casino gambling encompasses more than just gaming and entertainment. Person 4 evaluated the effect of casino gambling on state lotteries. The main argument in this point is that gambling is harmful to state lottery. Local governments and states raise significant revenues from lotteries. However, the casino gambling effect on lotteries is negative.

Due to low participant activity as compared to casinos, many lottery players are turning to casino gambling. Casinos are also characterized by rapid money exchange, a scenario that exacerbates the need to play. Revenue generation from lotteries therefore decrease as casino gambling increase. Diversity in local government or state sources of revenue in gaming and entertainment is being dominated by casino gambling.The legal system was integrated into the discussion by Person 5. Person 5 argued that the structuring of the legal system affects economic outcomes of an economy.

Upholding rights and freedoms of the society is healthy in pursuit of economic growth and development. The argument here is that those people who want to gamble at casinos should be allowed. By so doing, they increase their expenditure, a scenario that depicts economic welfare. The legal system, in the casino gambling context, aids consumer expenditure and enhances a standard of living that the player wants to observe, prior to positively contributing to the local economic welfare. Finally, Person 6 argues that casino is a significant tool through which depressed areas can be stimulated.

A number of such areas were cited, including but not limited to Las Vegas, Atlantic City, New Jersey, and many of the other locales for casinos (Walker, 2010). Money changes hands so quickly, and so is the making of investment decisions. Casino infrastructure development has resulted in creation of employment opportunities as well as attracting complementary businesses around casino locales. ReferenceWalker, D. (2010). The Economics of Casino Gambling. New York: Springer.