The Economist has recently reported that casinos do more harm than good to local citizens and Govern

Benefits of Casinos Examined

The most prestigious UK-based journal on international politics and economics, The Economist, recently reported that US gambling did not contribute as much to the economy as its representatives stated. Although casinos and gambling resorts created a lot of jobs, most of them are minor, and do not produce big benefits.

In places like Indian reservations, Mississipi or Lousiana, and cities like Las Vegas or Atlantic City, casinos are considered to be the main source of income. However, today economists discuss whether casinos truly stimulate economy. While it is true that they create a lot of jobs, the costs of having the law enforced and the extra social services needed for gambling addicts are far bigger than the benefits obtained. As a matter of fact, casino employees are not productive, usually do not pay taxes, and are often involved in embezzlement and other frauds, according to The Economist. This all costs billions of dollars to the Government. The paper also says that the growth of this industry comes from other sources other than gambling, such as shops, shows, etc., for gambling itself is not economically profitable.

Economics professor, Ransford W. Palmer, says that although he agrees with The Economist point of view, he thinks that in some cities where casinos have been successfully managed, the benefits have been considerable. It is true that casinos attract crime, but authorities can regulate this problem with strict law enforcement. The same goes for gambling addictions. Although casinos create gambling addicts, state lottery does not create less addicts, for people who incur in debt would do it with or without casinos.

In response to The Economist survey, the American Gaming Association (AGA) says that casinos are a great source of employment (more than one million Americans work in casinos) and tax revenues for local governments. As for the gambling problems caused by casinos, the AGA said that the national Center for Problem Gaming, funded by them, is helping lots of families who are suffering from the consequences of compulsive gambling. According to the AGA casinos provide tax relief and community development to the cities where they are located. Taxes can help to fund those extra social services required for gambling addicts, as well as other types of social programs. Unemployment rates decrease and communities are economically stimulated.