Casinos can help boost economic growth depending on factors such as poverty and unemployment rates
Many wonder whether the casino industry has a positive impact on economic growth and local economies given the social costs of problem and pathological gambling. Here is what research studies have to say about casino visitation and social and economic effects.
Times of Recession
The casino industry is certainly not recession-proof, and factors such as consumer spending and confidence and economic uncertainty have a role to play when it comes to revenues from casino visitation. Macroeconomic conditions can have a negative impact on the gaming industry through layoffs and reduced household incomes.
Can Casinos Help Local Economies
Some studies suggest that the gaming industry can help local communities by creating jobs and bringing in revenue to build infrastructure. The point is how to attract new people, especially in remote locations that can be hard to reach in harsh weather. When location is not an issue, casinos help create jobs not only for sportsbook writers and dealers but also for shuttle drivers, security guards, bartenders, and tellers. Casino resorts are packed with nightclubs and restaurants, hiring personnel in local communities. They need hospitality managers, waiters, chefs, sommeliers, and casual kitchen hand. Resorts also offer accommodation to visitors coming from far and near and need supervisors, kitchen staff, waiters, housekeeping staff, concierges, porters, and front desk clerks. Guests staying at luxury hotels often require concierge service, whether babysitting, purchasing tickets, or getting an appointment with а hairdresser or barber. Whether it is accepting late-arriving luggage or making an embassy appointment, hotel staff offers customers a helping hand.
Of course, what visitors are here for is some gambling fun, and casinos offer a wide variety of games such as roulette, blackjack, and slots. This translates into tax revenues for local economies. Some major casino businesses operate both land and online casinos, thus offering a larger pool of gaming options. Whether customers are up for roulette, craps, or situs poker online platforms complement physical casinos.
What People Think
When it comes to attitudes toward the impact of casinos on local economies, research shows that close to 60 percent of people believe that the gaming industry can help local communities. Researchers, however, point to the fact that there are indicators to measure impact. One is to look at and compare the unemployment rate after and before the casino opened doors. Another is to compare the unemployment rate in other communities with that of the host community. Economic models also look at factors such as the number of hired employees and whether unrelated and related businesses close or open. Other factors to consider include total population, percentage of people in poverty, median household income, labor force participation rate, and job growth. Looking at figures and a combination of factors can help explain why casinos have a positive impact on some local economies and only a short-term positive effect on others.