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The Economics of The Casino Industry with Jeffrey Hayes

ByDave Stopher

Nov 9, 2019 #Gaming

Since the first civilizations, gambling plays an important role in our social life. However, it hasn’t been considered as something that can be called industry for a long time. Despite that the potential of the casino industry was probably realized a long time ago, gambling always had a huge barrier called ethics and social norms. So, it has always been a more or less illegal activity. In North America, a huge development starts in the ‘90s. Before that, there were practically only two major gambling centers – Las Vegas and Atlantic City. Today, casinos are legal in more than 30 states.

The same thing is with other countries in the world. Casinos are becoming legal in more and more countries, due to a huge economic potential. Even in counties like China, there are huge gambling centers like Macau, which bring billions of dollars every year.

The thing with the casino industry is pretty simple. As society has become less conservative, there is no reason to care about moral and similar things. On the other side, benefits from the casino industry are numerous. In most countries, taxes are still notably higher compared to other industries. As we are talking about revenue that measures in billions of dollars, it’s not hard to realize why most politicians support casinos. Fiscal pressure on state budgets is becoming bigger every year and huge tax revenue is a pretty good reason to support and even stimulate this industry. This is a great way to avoid spending cuts or other tax increases. People can also hide from the public eye and opting to play at online casinos.

Of course, there is an issue called problem gamblers. Things like reduced employee productivity, financial problems, bad debts and bankruptcies, committing crimes to get money for gambling etc. are typical for these people but the fact is that we are talking about a very small number, which is present in every society, no matter if casinos are legal or not. Moreover, the latest studies have shown that there is no notable increase. There may be a short-term increase in the problem gambling rate in local areas, but in all cases, the rate levels off over time.

The casino industry also has a highly positive effect on other industries in local areas. Of course, the first thing that comes to mind is the employment of the local population. The unemployment rates are notably lower in all areas where you can find casinos. It’s not only about workers that are directly employed by a certain casino. The local areas develop in other aspects as well, particularly in terms of tourism, which is one of the best ways to reduce unemployment rates. Moreover, casinos can also boost local retail sales.

As you can see, the benefits of the casino industry are obvious. A good thing is that this part of the industry in the stabile increase for decades and things could only become better in the future. Another thing we should consider is the online casino industry. It also has a highly positive effect on economics and it grows rapidly, especially in Europe and several Asian countries. The best thing is that it doesn’t have a negative impact on traditional land-based casinos, as both types of gambling industries continue to grow.

Jeffrey Hayes, Editor-in-Chief at Casinomartini.com

Linkedin: https://www.linkedin.com/in/jeffrey-hayes-writer/

Twitter: https://twitter.com/Jeffrey84078557

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