When looking at the history of casinos and gambling, it’s hard to think that the industry has only been around for a few decades. Back in 1980, gambling was still illegal in almost every part of the globe and have only become legal in places such as Atlantic City, N.J. and Las Vegas, Nevada. Ever since the 80’s Vegas hype, there has been over 30 states to legalize gambling. Most believe that it was only accepted in the majority of countries for its economic prospects for the future. Whether something is good or bad, if it promises growth, chances are it will be reconsidered and accepted in society.
Since the establishment of casinos, apart from economic growth, the best benefits include local retail sales, as well as the revenue tax and the relevant country’s government. It also allows for the relief of budgets as it makes a lot of bank for the given country and attracts acceptance of the public.
When looking at some of the biggest markets in gambling, Nevada, of course, reach the number one spot and is the largest casino market, reaching an estimate of $9.5 billion per annum. Generating less than half of Nevada’s revenue is its competitor, Atlantic City. Atlantic City casinos generate up to $4 billion per annum and riverboat casinos up to $1-2 billion.
With local governments selling the idea of gambling to citizens, the degree of increase is at large with an introductory and commercial growth, leading to economic development.
The issues regarding casinos at the expense of economic development
- Casinos ultimately showcase a lower unemployment rate as it’s introduced as an evidenced mechanism of which casinos use to improve their local employment. The local unemployment rate has dropped ever since casinos have reached the market. The point to be made is that unemployment rates, as well as local business conditions and population changes, should be considered before an after a casino is established.
- The question to be asked is whether casinos require labour, and at a large scale at that. On the contrary to the many labour benefits and jobs it could bring, if it has an opposite effect in which case jobs are limited, casinos will take more from the economy than what they offer.
Tax revenues and benefits
Casino competitors, as well as local governments, promote tax revenue as a benefit, furthermore benefits the recipients of the taxed casino revenue. Although the revenue is not recognized as “new money”, it’s tax results in a transfer of income shifting from one group to the next.
The positive effect includes boosting local sales
Apart from casinos generating an insane percentage of profit annually, it also lures people, or rather travellers, from abroad to spend money in the relevant country. This might be one of the best economic benefits of all and just so happens to be the perfect solution for a country in crisis. Whether casinos are regarded to be good or bad, they are deemed good in the instance of economic growth.