The need to makemoney without hard labor is something most people get interested in.Today most people through the help of gambling have been able to sortout major bills in their life and at the same time some people haveruined their lives with just a single bet. The question today is’’how does gambling affect the economy?’’ Gambling involves playing an array of games taking risky options thatcould be favorable or unfavorable depending on the outcome of thegame. When its favorable people call it a jackpot, a feeling everygambler loves to experience. What we can term a reward for passion.

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• Economic Benefits Of Gambling

The economy of acountry could get better when players win or lose but the effect ofmultiple players losing a bet over time can be very detrimental andcan also be a threat to a country development.

According to the U.S. General Accounting Office. Casino gambling causes up to $289 in social costs for every $46 of economic benefit, according to Grinols. “In 2003 dollars, the cost to society of an additional pathological gambler is $10,330 based on studies performed. Economic benefits Gambling provides jobs since all commercial games require labor. Casinos require intensive labor including security guards, technical support staff, gaming staff, among others. In 1996, around 300,000 employees earned a total of US$7.7 billion within the US nation.

When people getaddicted to gambling it can be pathological thus they are referred toas pathological gamblers. A good number of these pathologicalgamblers are very successful while another fraction is at the vergeof bankruptcy.

The effect ofgambling on economy cannot be over emphasized as it can affect theeconomy in tons of ways either positively or negatively which wouldbe reviewed.

Somebenefits of Gambling in the Economy

• Employment
• Tax revenue
• Economic growth

Employment

Gambling enterprises can lead to employment of a good amount ofindividuals, with the increasing amount of different betting agenciesthese individuals can work in various capacities as an agent,marketer and store keeper. As the time progresses they could becomeowners of a gambling center and later the brand ambassador.

For some gambling centers that have need for entertainers someindividuals are employed to entertain gamers and VIP gamers.

In some gaming centers there is need for menial workers such as thecleaners, security, croupiers etc.

Just as the physical gaming market is growing the online gamingmarket grows as well and there is room for more employment to work asa developer, coder, manufacturer, tech analyst, graphic designer etc.the job openings is endless.

A good gambling enterprise is made up of both the physical gaming andvirtual gaming paving way for countless employment opportunities thuseliminating poverty.

Individuals are engaged because some of these gambling enterpriseshave hotels where most of their foreign players lodge creating morespace for employment even outside the gaming sphere.

Tax revenue

The government smiles especially when an enterprise pays tax with thecurrent increasing number in gaming networking the government hasdimmed it fit to tax local and foreign game enterprises as a way ofgenerating funds or revenue.

The two gaming revenues are Gross gaming revenue and Net gamingrevenue. Over the years it has been calculated that taxes generatedfrom gaming revenue has been used to fund major Government projectswhile in some countries gambling is considered illegal such as Brazilwhere it’s almost restricted.

Also gambling revenue can be generated online by online gaming orgambling market. To function properly in a state or country it isvery advisable to register your business with the specific governmentauthorities.

It’s believed that countries like china who sprang up in a shorttime has made excessive billions of dollars Macau China made a grossrevenue of about 27 billion USD in 2016 from all kinds of gamblingincluding virtual gaming. China has one of the highest gross gamingrevenue in the world.

The United States specifically Nevada and New Jersey has generatedgross revenue of about 71.1 billion USD annually.

This revenue has been used judiciously by these nations indevelopment and restructuring some of these gaming centers whichattracts tourists from all over the world this has added to therevenue as hospitality, transportation, and other basic needs wherepaid for.

It also brings to a point where foreign currencies are exchangedinterchangeably this serve as a boost to the nation economy.

Economic Growth

With the increase in employment and tax revenue it can lead to a morestable economy where other government projects can be actualized.Putting in check economic threats such as inflation and recession.

Gambling been classified as a form of entrepreneurship can lead toeconomic growth by increasing the labor inputs either by hours workedor workers employed, it can also lead to technological advancementespecially in virtual gaming where mainly developers and programmersare needed basically.

Gambling has increased various countries gross domestic product (GDP)countries like United States of America, Republic of China, England,Mexico, and Uruguay etc.

A nation grows not just in size but also monetarily by giving foreigninvestors a chance to build gaming centers such as casinos, lotterycenters etc. these gaming centers do not only generate revenue butthey also bring tourist from far and across as time has shown tourismalso can build up a nation’s economy.

Some negative benefits ofgambling in the economy

• Increased crime rate
• Bankruptcy poverty and unemployment
• Health problems

Increased crime rate

Gambling can lead to increased crime rate when stake becomes highlyunfavorable, leading to excessive loss. Individuals who has become soaddicted to gambling may have to steal to make sure they gamble, somemay go ahead to murder. Cases of murder have been reported in variouscountries as a result of gambling. Some individuals even go as far astaking their own life; gambling suicide is the most common cause ofdeath in Europe.

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Gamers after using family life savings to bet in the process losingit sink into depression from which they consider suicide because ofthe stigma and the fear of facing their family members.

While some partake in cybercrime creating clone website whereignorant users log in sensitive information’s such as bankpasswords, bank verification numbers etc. these users get scammed oftheir money, some of these users still end up committing suicide. Thecircle of crime continues which sometimes lead to money launderingand extreme racketeering.

Bankruptcy poverty andunemployment

The trio of bitter existence, when gamblers are very addicted theyfail to calculate. They incur lots of debt in the quest of coming outof the debt they are submerged. For some the debt is so much they aresacked from work while for others they sign all form of documentswhich may involve their houses and business as standing collateral.They fail to realize the length they have gone until when they cannotplay any longer.

Poverty is inescapable, they become unemployed and bankrupt whichcould trigger some to a crime filled life while others are lead tosuicide.

They distort the economy with high level or amount of criminalactivities sometimes leading to financial breach in a countryexpected gross domestic product (GDP), here unemployment can alsoaffect economic growth as some families becomes poorer due to a rapiddrop in labor input and labor employed.

In some countries diversion of companies’ funds to gamble have beenrecorded which has been one of the primary causes of unemployment inAsia and Europe. Due to Africa poor exchange rate with othercontinents gambling is not seen as a major threat to the economy butseveral cases has been reported by top firms in the continent.

Any individual with such criminal case may find it difficult to getemployed in future because they are regarded untrustworthy and mayrequire strict supervision which is too much inconvenience to acompany the chances of getting employed remains herculean.

Health Problems

Gambling can lead to many health challenges to mention a few losingbet more frequently can lead to mood disorders it can also lead tothe over consumption of alcohol and drugs which leads to anxietydisorders and depression. One of the most leading causes of death inEurope and Africa is mental illness.

Just as the physical health is very important the mental health isimportant too most gamblers are not conscious of their mental statebefore and after a stake some gamers are hypertensive with interlacedhealth problems in their family history because some die of stroke orbetter put heart attack. Mood disorder which is also known as moodswing leads to acute depression this can affect the economy byshutting spaces in mental facilities making the population vulnerableas the greater half of them is prone to mental breakdown this totallycut down the work force or labor force which could lead to acountries poverty and a drastic drop in her gross domestic product(GDP).

Health problems limits an individual as they become totally dependenton the country so invariably they diminish the countries economicalprogression, reasons because most of these family are alreadybankrupt they cannot pay their medical bills leaving the Governmentwith more loss as most of its resources would be used for care andmanagement both in the hospitals (physical and mental) or atpsychological centers this also bring down the economy.

As the saying goes ‘’health is wealth’’ it’sonly the healthy that can make an economy stable and a nationwealthier when the ratio of sick to healthy individuals is notproportionate it can crumble any nation’s economy which could leadto poverty.

A sick man with no house to stay is very difficult to manage oftentimes they don’t come for their treatments even when the bills arealready paid by the government which can also lead to loss in theeconomy some of these individuals would prefer to buy cheap alcoholor take drugs they get in the streets and they totally neglect thefacility this again may increase mortality rate in the economy.

As a result of gambling, some are driven to extreme lengths to cover debt. Severely addicted gamblers spend most of their energy following their addiction. They cost companies loss of productivity and profit. Gamblers themselves may suffer from depression and bankruptcy. Some may go into severe debt and suffer anxiety because of it. The social costs to society are varied and include unemployment benefits, family services and medical treatment to gamblers.^[1]

During times of economic success, casinos tend to take labor supply away from neighboring businesses. Since casinos offer higher wages than regular neighboring businesses, such as restaurants, employees leave the neighboring business and works for the casino. Customers who normally go to the neighboring restaurants now instead go to the casino for food. This demonstrates how not all growth by a casino can be attributed as economic growth; sometimes casinos merely transfer growth from other businesses into their own.^[2]

Economic benefits[edit]

Gambling provides jobs since all commercial games require labor. Casinos require intensive labor including security guards, technical support staff, gaming staff, among others. In 1996, around 300,000 employees earned a total of US$7.7 billion within the US nation. This number does not include those who are indirectly involved with gambling, such as racing organizers. Employment resulting from gambling is difficult to estimate since gambling involves employees in many different stages. Entertainment is interlinked with gambling as well, for instance, the many shows available in casinos in Las Vegas. Hotel services and chauffeurs are also in higher demand because of gambling. Gambling increases aggregate demand for goods and services in the economy. In 1996, Americans spent one in every ten dollars on commercial gaming. This money goes directly toward stimulating the economy. This expenditure on gambling can also be magnified when considering the multiplier effect.^[3]

Reasons for gambling institutions[edit]

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In a study by Grinols, it was found that in the US, even though a state may not want to support a gambling institution, it would be economically beneficial for them to do so. If they did not support the institution, there would be many repercussions. This is because, neighboring states have gambling institutions. Residents of the local state will travel to these institutions and gamble nonetheless. This would take away profit and revenue form the resident state. Since these gamblers will gamble anyway, it is economically beneficial for a state to allow and support gambling institutions.^[2]

Another study compared personal income to personal gambling expenditure and found that gambling occurs whether or not the country is in a recession. This aspect will attract states to invest in an institution that is basically recession-proof. During the Early 1990s recession, GGR (Gross Gambling Revenue) increased 9.4% even though the recession slowed personal income to 5.95%. This shows resilience of gambling to the effects of recessions.^[3]

See also[edit]

References[edit]

Gambling Economic Benefits Retirement

1. ^Grinols, E L. (2004). Gambling Economics: Summary Facts. USA: Baylor University.
2. ^ ^abGrinols, E L. (2004). Gambling in America: Costs and Benefits. Cambridge, UK: Cambridge University Press.
3. ^ ^abChristiansen, E. M. (1998). Gambling and the American Economy. Annals of the American Academy of Political and Social Science, 556(1), 36-52.

Economic Benefits Of Gambling