Economic Development: Do Casinos Contribute?
Gambling is a relatively controversial topic to discuss. Yet, it has become more accepted in some parts of the world, and there is a noticeable increase in casino expansions and establishments. In this article, we will be discussing if certain factors in casinos contribute to the economic development in countries.
It is important to note that economic development is not based on one factor only. It depends on several subject matters such as political stability, trade barriers, resources, education, foreign aid, the specific country, and more. We will be going through the potential contributions of casinos to the economic development of a nation.
Contribution of Casinos
The number of casino establishments rose throughout the years, with mixed analysis to its contribution to society and a country. The list of possible factors are below:
- Increased Employment
- Every establishment requires workforce, and casinos provide labor to hundreds and even thousands of people, which helps improve the unemployment rate.
- Tax Revenue
- Casinos bring more significant tax revenues to both the state and local governments. The government usually uses the tax revenue to fund local or national programs that benefit the overall quality of life within the communities and positively affect tourism.
- Retail Sales
- Many casinos are also hotels or malls, so the local community can find jobs and provide for their family. Establishments such as casinos improve the economy, especially when people are more likely to purchase items.
- Entertainment is vital to casinos because they would much rather prefer their customers to be entertained to stay and gamble longer. Live shows with dancers, singers, and other forms of performances are given importance.
Impact and Analysis
According to studies, casinos do contribute to economic development, but it is relatively small. Moreover, this only lasts for a couple of years. Researchers found that there is a noticeable decline in growth in the long run. Its effect is not as drastic for it to contribute a significant change to a country's economic growth.
Given the information, it can be said that casinos have both positive and negative impacts. It is a big help to people who need jobs and to satisfy people's craving for entertainment in gambling, eating, and enjoying live shows. Do casinos contribute to economic development? Yes, but it is small and does not have long term benefits.