Gambling dates back to the Paleolithic period before recorded history as we know it. It’s clear humans have a penchant for betting, an undeniable desire to take risks. While it’s still stigmatic in parts of the world, many communities watch as their neighboring countries improve their infrastructure with gambling regulation.
Weighing the social versus economic impacts of this topic is a subjective and polarizing matter. Although the positive results are undeniable in some cases, it is common for countries to approach legalization with caution. There may never be a perfect balance, but there are many ways the casino industry is bringing benefits to people all over the globe.
What Happens When Gambling is Regulated?
As we’ve seen in the past, prohibiting things like gambling and alcohol doesn’t prevent them from happening, it forces them underground. It was only decades ago people used to squat in back alleys and shoot craps. Now all types of casino games are found legally online and in land-based casinos. Regulated establishments must follow strict laws, which in turn protect their patrons.
While games are fair, it’s no question that the house always has the edge. The amount of tax money generated by regulated gambling can be massive. Governments take a percentage of casinos’ net profit through a gross gaming revenue tax. Germany, for example, taxes the highest at 90%, followed by France at 89%, and the UK at 50%. Countries use this revenue for education, economic development, providing public services, and supplementing funds.
The American Gaming Association found that betting brought in $43.6 billion in 2019. The US is expected to break that record this year with $25 billion made in the first six months. The UK, a third the size of Texas, reported generating a gross gambling revenue of $18.5 billion in 2018.
In addition to lucrative tax profits, regulation creates vital jobs. Between on-site employment, corporate offices, gaming manufacturers, and goods and services, the gambling industry provides 1.8 million jobs in the US.
Building casinos also leads to the construction of related businesses such as hotels, restaurants, and bars. The economic impact is most significant in impoverished communities, especially when they become a destination location. Increased traffic to an area drives patronage to existing establishments and creates more employment opportunities at local businesses. On a grander scale, casinos can bring visitors to countries that were previously hurting for tourism money.
The Negative Impacts
While the development of casinos brings an influx of funds, a few unfavorable side effects can come with it. For example, if a local government finances a project instead of a private developer, they may not reach their highest profitability potential for years. When accompanying services such as increased police force, roads, and sewer lines, are in addition to the construction cost, it takes longer to recoup an investment.
In some cases, local governments don’t use profits as promised to enhance the community. Some of them funnel tax revenues into reducing their debt or just maintaining public services and infrastructure instead of bettering them.
The most apparent negative consequence of regulation is the potential for increased gambling addiction and crime. Those with betting problems may look to illegal activity to support their habit, while an influx of visitors to an area can escalate crime.
Prohibiting gambling won’t stop people with an addiction, and it could lead them into dangerous activities. Regulated betting provides a safer environment for everyone involved. In many communities, tax revenue is used to offer services to people who feel they need assistance with their dependency.
Finding the Right Balance
People that have a gambling problem exist all over the world, with or without legalization. Providing citizens with the right balance of regulation and care is essential, but it hasn’t proven as difficult as many speculate. With the money made from tax revenue, communities are able to provide anyone struggling with addiction an outlet where they can find help.
When measuring the benefits of legalization against adverse effects, it is hard to ignore the overall positive outcomes. Countries thrive under the creation of thousands of jobs and millions in revenue they can put back into infrastructure and services. While it’s not a panacea for all of the world’s problems, a future with regulated gambling looks to be an improved one.
About the Author
Ashley Grasse is an avid traveler and has enjoyed more than a few nights in casinos around the US. She is currently employed by OUSC as a writer. She has always had a passion for the written word and loves to read. Most of her spare time is spent hiking, foraging, or swimming. Although she currently doesn’t have any pets, she adores dogs imme
