The economics and ethics of casino gambling.

Introduction

Davis defines gambling as putting "... at risk something of value on events whose outcome is uncertain" [3]. Gambling comes in many forms, including betting in casinos, racetracks, sporting events, lotteries, bingo games and even virtual gambling on the Internet. Participants

What are the true costs and benefits of legalized gambling? Eadington believes that more research is needed by "a critical mass of academic and professional researchers who would bring a disinterested but methodologically sound analysis to bear on the myriad of issues surrounding gambling" [4]. This article seeks to provide an unbiased look at the costs and benefits of casino gambling.

Economic Impact

The most often mentioned economic benefits associated with casino gambling are creating new jobs, attracting tourism, increasing business and tax revenues, and decreasing the tax burden on the residents of the community. The less often mentioned economic costs of casino gambling are the costs of crime, compulsive gambling, erosion of the work ethic and traffic congestion. Some of these "social costs" can be measured in dollars - the cost of more police, legal and prison costs of criminal justice, the cost of social services for compulsive gamblers, lost job productivity and the added costs of traffic control - but the damage done to persons and families is not easily quantified.

In economically depressed areas, casinos are perceived as a sure way to draw tourists and create new jobs. Does casino gambling foster economic development in a community? While the casinos themselves may profit, are there also economic benefits for the community, such as the creation of new jobs and spin-off revenues for local restaurants and shops? MacIsaac doesn't think so: "Instead of rejuvenating a city, a casino can actually kill other businesses by sucking money out of the economy" [12]. He notes that "studies have shown that many of gambling's supposed benefits are nothing but the economic equivalent of a shell game." While casinos create new jobs, some existing jobs in other businesses are lost. As for revenue spin-off, "casinos draw vitality out of other sectors," according to James Hughes, Acting Dean at the School of Planning and Public Policy at Rutgers University. "They want all spending by patrons to remain inside the casino. There are no windows, no clocks on the wall. Once you're inside, they don't want you to leave."