Casino gambling is an important economic driver, but it also poses social problems that can impact individuals, families and communities.
Studies on the effects of casino gambling on society have been conducted, but their methods are often inadequate and may lead to inaccurate conclusions.
Legalization
Though gambling can bring economic benefits to communities, the industry also imposes social costs. These include traffic congestion, demands on public infrastructure and services (roads, schools, police), environmental effects and increased crime.
Legalizing casino gambling is a contentious issue, as many consider it to be an immoral act. Nonetheless, in recent years many states have agreed to permit casinos within their borders.
Assessing the social effects of casino gambling requires understanding how local residents perceive it. Perceptions may differ based on age, education level, socioeconomic status and religious beliefs.
Singapore, for instance, has seen the introduction of casino gambling lead to various socio-economic developments. For instance, it created job opportunities within the gaming sector which attract foreign capital and diversified employment types.
Regulation
The moral fabric of society should be taken into account when debating whether casino gambling should be legal. Many people oppose gambling, contending that it runs counter to their personal values and that casinos encourage problem gamblers to act on impulse.
Some people, however, support casino gambling as an enjoyable form of entertainment that could generate additional revenues for government entities. Conversely, others disapprove of gambling out of religious reasons or because it squanders money that could be put to productive uses.
Gambling in the United States was previously heavily regulated at both state and federal levels. Nowadays, many US states have passed laws permitting various forms of gambling such as Indian casinos, horse racing, bingo halls and poker rooms.
Taxes
Casino gambling has a profound effect on society, affecting economics, quality of life and social dynamics alike.
Gambling revenues account for a substantial share of state tax and fee income, particularly in states with legalized casinos or expanded gaming options. These taxes can be used to supplement state budget gaps that arise when economic conditions become difficult.
State legislators typically support legalizing gambling activities to generate additional sources of revenue during times of economic difficulty or when other sources of income become depleted. They contend that legalizing gambling encourages local economic development and attracts tourists to their states.
States should be mindful that any revenue gains from gambling legalization and expansion are temporary and often come with costs. These can include intangible costs like bankruptcy, crime, job loss, divorce, suicide, family problems and regulatory expenses which are difficult to quantify.
Social impact
Casinos generate tax revenue for their home cities, creating jobs and stimulating local economies. Furthermore, they draw visitors who spend money locally while supporting hotels and other tourist attractions.
Gambling is a social activity that brings people together and provides relaxation. It also offers them the chance to learn new things and craft intricate strategies in order to win at the game.
However, gambling can have many unintended consequences. These include financial issues, bad debts or bankruptcy, committing crimes for money purposes and deceiving friends and family.
Some researchers have argued that casino establishments “strangle” development spaces for other industries (Garrett 2004, Grinols and Mustard 2006, MacIsaac 1995, Wan and Kong 2008). Unfortunately, these opinions were not shared by survey respondents in this study.