Is Gambling Bad For The Economy
- The gambling industry contributes significantly to job creation and economic development, the trade and industry deputy minister said on Monday.
- As legalized gambling continues to grow in popularity and prevalence, and new forms of gaming are introduced and expanded, there is much public debate about the costs and benefits of this sector of.
- The positive economies it may generate may also percolate to other sectors like hospitality, real estate and travel The negative effects include the following: - Gambling is considered to be bad by many societies and is hence discouraged.
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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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.
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.
Is Gambling A Bad Habit
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.
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.
The wagering of money, known as gambling has been around for thousands of years and is common all over the world. Each year two thirds of the adult population will make a bet. Also thirty billion dollars are made in casinos and another seventeen billion comes from state lotteries. Gambling is a good thing for today’s society for several reasons.
First, gambling improves the economy. Only two decades ago two states had legal gambling; now forty-eight states have some form of legal gambling so it is obviously bringing in money for these states or it would not have been legalized that quickly. In 2006 over five billion dollars was made from state and local taxes. This means that the taxes from gambling contributed a lot to the economy. In areas where a casino has been put in there has been an improvement in the local schools due to the increase in funds caused by gambling taxes. Also roadways and other programs have benefitted from gambling in their area.
Next, having casinos in an area produces tons of jobs. In the United States alone over 350,000 jobs have been created by casinos. This helps families as well as the government because they don’t have to take care of those people who work at casinos. There are over 1,500 casinos across America giving the opportunity to many people for employment. This will also help a city by increasing the population and therefore improving the economy.
People may say that gambling is a bad thing, because some people get addicted to gambling and lose their money, but it is better to be addicted to a game than something like drugs or alcohol. In the United States there are 15 million Americans addicted to gambling and 23 million addicted to drugs or alcohol so the problem of people being addicted to gambling is not as bad as it may look. Also there is a simple cure to gambling and that is to just stop going to casinos in most cases. Drugs have harmful effects and are much harder to break that addiction.
Last, gambling is a way for people to enjoy themselves and is becoming a popular form of tourism. In 1996 twenty-nine million people visited Las Vegas and 38 percent of Americans will go to Las Vegas in their lifetime. People go on vacations to places like Las Vegas or Reno Nevada, which are two major cities for gambling, to go have fun in casinos and gamble for fun. This is also very good for cities like these to make money. In 2006 in the U.S. 450 casinos made about 34 billion dollars. Gambling is a good thing for tourism and lots of people enjoy it.
Gambling is a positive thing because it improves the economy by bringing in lots of tax dollars that can be used to help communities. It is a fun way for people to spend their time if they do it in a responsible manner. Gambling has been legal in Nevada since 1931 and has grown tenfold from 1975 until now, which means it is a growing form of income that helps the economy and tons of communities.
Bibliography
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