But the truth is that this is a complex issue.įor one, a casino’s profits can come from a variety of sources, including the construction of new facilities and services. Many people argue that casinos increase employment opportunities, boost local business and increase retail sales.

While casinos can generate significant revenues from gambling, their economic development benefits are often debated. It is therefore essential to consider whether the social costs of gambling outweigh the economic benefits. For instance, does the incremental debt incurred by problem gamblers represent a real cost to society or is it merely a transfer? The latter is the case when the debt incurred by problem gamblers would have been spent on locally available entertainment or recreation had the casino not been built. However, proper classification of benefits and costs is contingent on the frame of reference. This influx of new money in the community helps to drive down unemployment rates in the city. Local workers are often one of the earliest beneficiaries of casino tourism, as casinos employ security guards, dealers, accountants, and slot attendants. State-sanctioned gambling operations generate revenue for government coffers and provide jobs with decent wages. Unlike in the past, when gambling was routinely condemned by government officials, it has now been embraced and promoted as a legitimate strategy for economic development. This generates additional taxes for state and local governments. Taxed casino revenue is simply a transfer of existing money from casino owners to government programs.Ĭasinos attract tourists who spend money on food and drink, entertainment, gambling, and other things. However, this does not necessarily mean that more jobs means more money in the economy. Casino proponents and state and local government officials often tout the fact that casinos generate jobs.

Casino effect on economy