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Casinos and their effect on the economy

Casinos just like any other business entity are opened with the sole purpose of making money. Protagonists of their existence realize this fact and only hide the true intentions with the promise of jobs and economic prosperity. Because of this we evaluate them on their economic merit.

Resource drain

When studying the economic impact, some things crop up. The majority of the studies has reported a slight growth in job creation and increased economic activity. The most significant is the source of capital to operationalise the casino and its target client. When the source of capital is foreign and the client is local two things may happen. More growth is realized as profits are put into productive courses within the locality or profits are taken back to the source. In most cases, they go back to the sources. Gambling, which is the prime service offered by the casino has no economic merit since there is no good or service being produced although it is consumed. It is not like music or film where production takes place and therefore, money foregone by the customer to consume or save for another purpose and spent on gambling is considered economically lost. The multiplier effect of jobs created against the negative impact that other real goods and service industry suffer within the locality is not comparable as was observed by Dunstan (2007).

Social costs of addiction and mental related issues

However much any study would want to evaluate ideal usage of a casino, there is an overwhelming belief that to achieve the true picture, consideration of the situation as it is, is paramount. Casinos are known to influence a sub-culture in its wake. Casinos are associated with drugs, alcoholism, prostitution and high-end criminal activities. They breed hatred, vengeance, lawlessness and general laxity from the locals. It has also been observed by Kindt (1994) that casinos have the tendency to hire low skilled labor without offering job security especially for minorities. Individuals make money sometimes so fast and this hurts education sector especially inculcation of business principles. Kindt further observes that pathological and mental related bills that are a more likely outcome of a casino than economic growth, take a huge amount of resources in terms of time and money.

In conclusion, the political class involvement serves as proof that without state and state fueled patronage; policy-wise their development has no merit. This is because whatever little they give, they compensate by taking more of young and productive members of the society either into mental institutions, jails, gangs or hopelessly lazing around without a clear plan for their life.

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