There used to be a time when gambling, in its modern form, in terms of casinos, was a societally highly detrimental phenomenon. But in modern times, we can witness an opposite trend forming up, of the majority of people believing that gambling can only be a neutral form of entertainment. Still, it can also be a highly beneficial entertainment form in terms of society’s well-being. You can check at www.RedDogCasino.Com and see that there are many visitors, which means that gambling itself is getting more and more popular on a daily basis.
That being said, the question arises whether gambling is good or not for the development of a particular country’s economy? As mentioned before, the zeitgeist tends to shift, and opinion on the societal benefits of gambling also shifts with it. So, in this review, we will discuss both the pros and cons of developing the country’s economy when it comes to the gambling industry.
Gambling as a Source of Taxes
One of the main benefits of legal gambling and casinos is that the state can tax them and then use the money to invest in the country’s ongoing projects. For example, it’s quite possible for the state to build hospitals and schools and provide welfare and accessible healthcare for poor people.
And the best part about it is that it’s not the small sum of money that we’re talking about. Casinos worldwide have been known to be a part of a billion-dollar industry. So, the state’s coffers can get a huge sum of money every year to use for its projects.
However, when it comes to taxes extracted from gambling ventures, there is a flipside. Namely, studies consistently show that gambling taxes are highly regressive. This means that the people who go and gamble tend to be on the poorer side in general. This means that the rich won’t be taxed equally with the poor – and the poor will bear the brunt of the casino taxes that the state will benefit from. So, in essence, the state and the casino owners get richer, while the poor people become poorer. And taxing the poor (even though it’s of their own will) is almost never a smart thing to do in any modern economy.
But the proponents for the legalization of gambling state a valid argument that legalizing gambling will also serve to attract tourists from all over the world, which will help the tourism sector in the country and, once again, provide an additional tax boost to the state’s coffers. As an illustration of this point, you can take a look at the city of Las Vegas. Every year, millions of people from all over the world stream into this city – just because it’s considered the world’s gambling capital. And Las Vegas remains one of the most sought-after holiday destinations in the United States of America. But, of course, if gambling was illegal, none of this would matter, and Vegas may eventually get absorbed by the surrounding desert.
Also, history tells us time and time again that gambling bans and prohibitions never work as intended. Hence, we can all agree and accept the notion that gambling is a part of our spirit as humankind and that we’ll never be able to suppress it fully. The bad side of banning gambling altogether is that illegal gambling establishments tend to show up as soon as the ban takes place. Thus, not only will illegal gambling take place without the state consenting to it, but one major drawback to this phenomenon would be that the state would not be able to tax these illegal gambling establishments because they are illegal.
Also, if gambling is illegal, it is impossible for the state to intervene if the illegal gambling games are fixed. This goes for fixed illegal sports betting, as well, as there are countless known cases when gamblers have been unwittingly deceived and defrauded by the operators of the illegal gambling rackets. And because these enterprises are illegal, the government is powerless to intervene and punish the organizers of fixed games.
On the other hand, if gambling is legal, the state does all to control the industry. Many commissions are formed in the guise of regulatory authorities – and they control the casino operators that work in the state. So, if gambling is legal, it would be a lot more legit and fair experience for the gamblers than if it was illegal.
Gambling as a Source of Employment
One thing that’s quite obvious is that casinos and gambling ventures are known to open up job opportunities for people. But, again, the worldwide gambling industry is a billion-dollar business. And as you can imagine, countless people are employed in casinos across the world. So it’s a highly profitable business, and the jobs that people have within this business are also highly beneficial.
However, there are some incidences when the opening of new casinos in a particular state or country hasn’t resulted in an expected and much-needed employment bump, for whatever reason. So, if a country’s government wishes to open new jobs for people, then investing in the gambling industry may not be the best choice for that, as there are other options to make a note of, too.
Gambling’s Social Costs
Despite all of the benefits for the state’s coffers and the employment of thousands of people who would have otherwise remained jobless, every state must be aware of one serious problem with gambling. Namely, gambling is considered to be, at times, a pathologically addictive disease, of sorts. While most people who gamble know where their limits are and know when to stop, many, many people have fallen prey to the vice of gambling.
And it’s not just about potentially spending one’s lifetime of earnings all in one night in Vegas. Gambling has been known to be a hot button when it comes to marriages. Namely, many people have divorced over not being able or not wanting to quit gambling as their spouse has requested them to do so.
If people aren’t careful, then they can turn their whole life upside-down with gambling. Many people have called on the Gamblers Anonymous phone lines and have reported they are thinking of suicide because of gambling-related problems. Without a doubt, there are many people that have gone through with this resolve and have committed suicide. In addition, there are people known to do illicit activities just to finance their gambling habits. Alcohol and drug abuse are also known to plague the life of gamblers.
To make things worse, casinos and casino owners are known to employ techniques to hook people up to gambling. For example, they eliminate windows and clocks from the premises so that people lose track of time as long as they’re inside the casino. They also make things overly flashy and exciting while still retaining a significant edge over the players. Lastly, they are known to offer free alcoholic drinks to their patrons because people are known to take more risks and let themselves go more when they’re drunk than when they’re sober.
Moreover, people have been known to go all-out with gambling, losing their jobs and friends because of it. The fact that there are countless casino-sponsored and state-sponsored programs for helping gambling addicts battle their addiction doesn’t seem to be of significant help as the number of gambling addicts continues to increase.
So, we can never underestimate the social costs of gambling, by any means, as they can be quite severe and shattering. The social costs of gambling make us aware that it may not always be beneficial to be so strongly in favor of gambling. But again, there are state-sponsored programs that help, if not completely eliminate, then dramatically reduce gambling’s social costs.
The Main Benefit of Gambling
We’ve been talking about the benefits and potential disadvantages of gambling regarding the state, the economy, and the individuals. However, we’ve neglected to mention one thing that sits at the pinnacle of gambling – the fact that people gamble so that they can win money.
And despite what uninitiated people think – gambling is not always determined by blind luck alone. Most gambling games allow for some strategy to be implemented on behalf of the players. This means that the players can play better and thus increase their chances of winning the big prizes. Even slot games allow the player to make bigger bets and activate a higher RTP threshold.
So, the point here is that many gamblers have managed to turn their gambling passion and hobby into a fully-fledged career. Just take a quick look at the top poker winners in the world, and you will see people that have won tens of millions of dollars playing this game, which is a lot more than what many people make over the span of their entire careers in other industries.
This makes up for the fact that people stand to make money gambling – even though there is a somewhat distorted view of gambling, one only stands to lose money from it. Namely, there are some games that are known to offer progressive jackpot prizes to the players. These are typically online slots. The great thing about progressive jackpots is that they are known to pool money from various games made by the same developer. So, the progressive jackpot pool can climb up to several million dollars at a time. On the other hand, there are known instances when players have gotten more than $10 million playing a slot game.
While it’s never a guaranteed outcome to win a lot of money when gambling, there’s still the elusive chance to win big and change a person’s life for the better. Moreover, people that win money are known to be a lot happier – there’s a saying that “Money won is twice as sweet as money earned.” And this, too, is known to improve life in the country and further increase the well-being of the country’s economy.
While it’s never a guaranteed outcome to win a lot of money when gambling, there’s still the elusive chance to win big and change a person’s life for the better. People that win money are known to be a lot happier – there’s a saying that “Money won is twice as sweet as money earned.” And this too is known to improve life in the country and further increase the well-being of the country’s economy.
The critics of the development of the gambling industry state, among other things, that gambling enterprises are known to be a fierce competition to other businesses. There is a phenomenon called “industry cannibalization.” We feel that those named this phenomenon have exaggerated a bit, but the principle remains in effect. And it’s that casino businesses are known to “take money away” from other businesses.
And the logic behind this is simple. One person likes to go to the movies and go gambling – but there’s only enough time to do one of these things. And, in many instances, gambling will prevail, which will negate the opportunity of the cinema industry (as in the example) to turn additional revenue.
But if we were to analyze this phenomenon from a more unbiased point of view, we would undoubtedly deduce that industry cannibalization does not only pertain to casinos but to every other new business in town. So, if the critics of casinos and gambling use this argument, it effectively means that they’re also against any and every new business that opens up.
Luckily, we’re fully aware that the creation of new business is not something that ruins the economy – but something that fuels it. So, at least in this regard, casinos and the gambling industry are known to be a big positive for the economy. Even though individual business owners may disagree – competition in the market is always useful and something that help drive the economy and results in an overall rise of the country’s prosperity.
Gambling and Crime
By no means are we saying that gambling and crime are somehow intrinsically connected and that one doesn’t exist without the other? Far from it being the case – the vast majority of gamblers are known to be upstanding citizens that respect the laws of the country they live in. However, there are some instances that show that gambling has been known to induce people to crimes.
One of the critical aspects in determining the influence of gambling on a person’s criminal propensity is whether the person is “addicted” to gambling. It may seem easy for us to believe that gambling’s only possible when a person has the money to do so. But what happens if the person doesn’t have any money left? Do they magically stop gambling?
Well, in some cases, they do. But in some cases, these people are so addicted to gambling that they feel that they have to find some money, no matter what the cost, so that they can gamble. So, they turn to stealing things and pawning them so that they can get quick cash that they can use in a casino.
There are known cases when people have turned to selling drugs and other illegal items to get the money they can gamble with. So, while it’s true that gambling and crime aren’t intrinsically connected – there are still many instances when people have turned to crime so that they can finance their gambling habits. And this, too, falls in the so-called “social costs” of gambling.
Online gambling is also known to be highly beneficial to the state’s economy for all the reasons mentioned above. However, in this day and age, the online gambling industry has been known to help many countries worldwide keep their economies up and running – without going under.
The main reason for this is the still-lasting global pandemic of the COVID 19 virus that, among other things, crippled the global economy. There have been bans of all shapes and sizes – and with the curfews, there were many instances when people were forced to stay at home.
Well, among other things that people can do at home – is online gambling. When many businesses had to go under because people were reluctant and even prohibited to go outside, online gambling has thrived. This is due to the fact that online gambling is immediately accessible to many people worldwide. All it takes is access to the internet and a payment method – and you’re good to go.
So, countries worldwide have been known to extract a significant sum of taxes from online gambling alone. Of course, this is not enough to run an entire economy, but it’s more than enough to fill a few important gaps in the state’s coffers and leave a little breathing room for things to start recovering and get back on track.
In Conclusion – Gambling’s Role in the Economy is Not Black or White
If you’ve been reading the review up until this point, then you know that the gambling industry is not without its fair share of both benefits and drawbacks when it comes to influencing a country’s economy. It takes a multifaceted approach to see just what kinds of effects gambling has on a country’s economy.
And even now, things aren’t as clear as we would like them to be. Many state-wide studies are currently on their way that strives to show just what kinds of effects the gambling industry has on the economy.
Regardless of what these studies find, we can all agree that the answer to the question of the gambling industry’s potential usefulness when it comes to the economy – or its detrimental effects after that – is manifold and complicated. For starters, the numbers don’t lie – and the numbers show that the country’s coffers get full with the help of the gambling industry’s taxation. But, of course, we should bear in mind that a state’s income doesn’t rely only on gambling taxes.
On the contrary, it’s estimated that gambling taxes only amount to about 5% in general of the states’ annual income, which is seemingly not a large number. However, this enables policymakers to have some leeway and fill in some gaps in the budget without resorting to increasing taxes and lowering wages in the public sector, which is always a good thing.
Then there are the inherent issues of problem gambling and the so-called social problems of gambling. It’s estimated that about 1% of the population of any country tends to get involved in what’s known as problem gambling. These people lose their jobs, get divorced, lose all their friends and spend all their money on gambling – and a portion of these people turn to crime so that they can finance their gambling cravings.
Only if the state does everything in its power to prevent problem gambling and to create programs and hotlines that would help the problem gamblers get a hold of themselves – can the phenomenon of problem gambling be effectively managed.
So, in any case, there’s the clear answer that gambling has its own fair share of benefits and disadvantages. Therefore, the main question is whether the gambling industry has more advantages or more drawbacks over developing the country’s economy? And given our analysis above, it’s safe to conclude that gambling seems to have a net beneficial impact on the state’s economy when all things are considered. As mentioned before, a number of studies are commissioned to show whether this is indeed the case. But if there’s one certain thing – it’s that gambling is a part of human nature and that, regardless of the reigning powers’ opinion of it, whether they want to legalize it or prohibit it – gambling is here to stay.