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Economic Issues: Casino Gambling Essay

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Updated: Mar 21st, 2020

Expansion of Casino Gambling

The casino and gaming sector in most countries has experienced considerable growth. Most of this growth has been attributed to the explicit policies adopted by various federal and state governments. It is believed that casinos can be a significant facilitator and promoter of growth within the tourism sector. However, the realization of objective within the growth and tourism policies has resulted in mixed fortunes. The influence of casinos on economic growth and tourism has been heavily dependent on several factors.

The common type of gambling that has been predominantly linked to tourism is gaming. Inspiration obtained from the success, achievements, and the economic development of Las Vegas, attracted the attention of other jurisdictions. As a result, most of them enacted laws to legalize casino gaming due to various reasons, but most significantly because of the growth in tourism and economic development witnessed in Las Vegas.

Recent history suggests that most states in the US legalized casinos and gaming due to various reasons. The most significant reason includes the generation of tax revenues. This is because casinos are predominantly taxed at relatively higher rates compared to other forms of businesses.

This provides the federal and local authorities with a source of tax. Before 1989, gaming and casino gambling was only legalized in the states of Nevada and New Jersey only. However, the enactment of the IGRA of 1988, paved the way for the commercialization of gambling (Vaughan & Siegel 109).

Evidence from several surveys suggests that the competition from various states within the US has contributed to the growth and expansion of casinos. Some studies have suggested that most states in the US legalized casinos in an effort to stop their own gamblers from travelling to other gambling states.

Gambling cities such as Las Vegas and Atlantic City have in the past been seen as significant tourist attraction destinations. By legalizing casinos, these states would enjoy and benefit from gaming tourism, which has been very successful in Las Vegas (Vaughan & Siegel 110).

It has been noted that most states considered the legalization of casinos to keep their own gamblers from touring other states. The ripple effect of this is that it has created job opportunities within the gambling states. The casino business has a ripple effect on the hotel industry. As casinos continue to increase, they have led to an increase in hotels and by extension the demand for more employees to man these hotels.

Most of the casino jobs are permanent in nature, and the employees also enjoy other employment benefits. Some of these benefits include higher wages, bonuses, and tips. It is also argued that the legalization of casinos was adopted because casinos have a positive influence on other sectors of the economy. Some of the effects associated with the expansion of casinos include acting as a catalyst to the state economies, creation of employment opportunities, and exerting pressure on rural wages leading to an increase in the wage rate.

Gambling is also known to lower the demand for public assistance hence reducing the recurrent expenditure of the state. Another reason that has led to the rapid expansion and growth of casinos, is the availability of advanced and reliable infrastructure such as airports, seaports, and highways, which encourage gaming tourism (Vaughan & Siegel 108).

The growth and expansion of casinos has been fueled by competition from individual states to obtain revenue and taxes. Taxes levied on casinos are generally higher than what is charged on other sectors. Casino gambling also attracts gaming tourism, which boosts the local hotel industries. Most states went ahead to legalize casinos, and these are the reasons for the rapid expansion of casinos.

Works Cited

Vaughan, Williams L, and D. S. Siegel. The Oxford Handbook of the Economics of Gambling, New York: Oxford University Press, 2013. Print.

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