4 Major Factors For ” How Gambling Affects The Economy “
4 Major Factors For ” How Gambling Affects The Economy ” is available as following, you may select video or podcast to stream it in a different way or you can continue to read it down all the way to bottom.
The fact that parts of the gambling have been legalized and parts of it are struggling whereas some are labelled as crime is enough to open our mind to the dimension of economical effects of the gambling activities. How gambling affects the economy ? Well that’s exactly what you can expect to be known about at the end of this article, or if you prefer to watch the video at the YouTube channel or listen to the audio podcast on Soundcloud.
Gambling Industry is not the lake at which everyone loses their bucks, it's a smart place where you have thousands of bees and few beekeepers. You gotta understand the game Click To Tweet
Economically gambling has a huge impact. If you’re not here for the long then let it be known the gambling offers a huge plus point for the economy of the country. Yes it’s totally true and fact backed statement, I’m going to elaborate it ,deep.
Gambling offers benefits to the economy as it collects money from the people and returns to them in one way or the other. [ If you believe you are problem gambler, you should seek help with Gamblers Anonymous ] .Your money is not going to waste in any way, it will return to you one way or the other but the problem comes when someone spends more and in return get’s less – That’s exactly what’s called the problem gambling.
To understand this, consider How does casino make money on poker. You’ll learn that casino charges what’s called the “Rake” which covers up all the expenses of the casino to offer you the table. So they collected let’s say an amount “x”. Now from this amount “x” they will give a percentage to the government as a tax. Now the money with which you gambled, has gotten to the government as a tax amount and it will be used for a let’s say a road project. Now you use this road for ease and comfort. Did you lost any money , no.
The problem comes when you gambled with 100x and you’r friend gamble with 1x amounts. Both of them make their way to casino and ultimately to the Government. Let’s say the government made a road out of it. If you and you’re friend use the same road, you spend 100x for that road and you’re friend spent 1x for the road provided that you both have equal financial status. Who’s in the loss now? Obviously you.
So that’s something called problem gambling when you gamble with the asests which are not comfortable for you.
Coming back to the economical affects of the gambling, here’s the list on how gambling affects economy
- Business Opportunities
- Cash flow
Now let’s discuss these 4 point in some details.
1- Employments by Gambling Sector
Gambling offers a huge deal of employment. To have an estimate just give a warm visit to the nearby casino and see for yourself how many people are there. You wont witness them all because the casino is not just about a room or two, the good ones or I would say the reputed ones have thousands of employees. This umber varies with the facilities provided by the casino but normally it’s way above hundreds.
This data from the casinocitytimes would help you get an estimate on how much employees are there in casinos ( The popular ones )
1.) Casino de Genting (Malaysia) – 13,000
2.) Foxwoods Resort Casino (Connecticut) – 10,220
3.) Mohegan Sun Casino (Connecticut) – 10,000
4.) Bellagio (Las Vegas) – 9,700
5.) MGM Grand (Las Vegas) – 9,000
T-6.) Mandalay Bay (Las Vegas) – 8,000
T-6.) Sands Macao (China) – 8,000
8.) Caesar’s Palace (Las Vegas) – 7,500
9.) Borgata (Atlantic City) – 7,000
10.) Atlantis Resort and Casino (Bahamas) – 6,500
To power the employment ratio, the government allows the licensing to the casinos so that they can provide employment to a vast number of people and in turn can improve the economy to a greater extent. So employment is the number one affect of gambling in the economy.
2- Tax Collected From Gambling Industry
Taxes are the primary sources for the government to raise the money up for the country and use it for the prosperity of the nation. No doubt about it. The fact of the matter is casinos are helping generating the government with a huge deal of taxes which will improve the fund reserves for the nation. Whenever you gamble, a tax is collected – whether you win or lose. If you lose at gambling, the casino makes the profit and tax is collected from the casino. When you make a winning, a tax is made applicable on your winning through one way or the other and the tax amount is collected. So it’s a continuous flow of tax for the legal bodies.
In 2012, Nevada and its various counties and municipalities collected $868.6 million in terms of taxes. So you can see for yourself how much of a tax amount is meaningful to the government. All this amount is used for the prosperity. I am not convincing you to go all in for your next bet to increase this amount, What I’m saying if everyone contributes an equal fraction of this amount ( If all the people spend a tiny amount to gamble and fulfill entertainment needs ) then this wont be bad for anyone. The problem starts when half of this tax is from someone’s assets and the rest shares just a tiny part of it.
3- Business Opportunities In Gambling Sector
Gambling gives birth to hundreds of business opportunities. Consider the PCSO lotto outlet business in Philippines, you can make a handsome amount legally with a lotto booth for instance. Consider a restaurant that wouldn’t make enough sales throughout the city but if it’s in a casino maybe it’s making more profit than all of the other branches combines. Gambling industry is like a house full of people ready to be entertained and are willing to pay for entertainment, how to cash out the one from such a circumstance is really a work of entrepreneur.
Those who ware able to assess the upcoming business opportunities are better able to make more out of their business while those who fail to do such a thing are left behind.
4- Cash Flow By Gambling Industry
Think about this for a moment. What if we all stop consuming anything except water and grass, we can probably live with that. What we do is that we put all our money ( draw it away from bank accounts ) and put it in a safe box at our place. What happens? the economy collapses. Because there is no way for the government to collect tax and facilitate so you lose law enforcement bodies. There is no construction anywhere. It’s gonna rot.
To consistently have cash flow ( meaning the money should circulate many people in a short time ) casinos are necessary and the gambling sector is crucial for it. Don't bet with your home at stake, bet with $1, enjoy. Live and laugh Click To Tweet. What happened is that that $1 made it’s way out of your pocket and this $1 was used for betting and now a part of it goes to hundreds of employees and government and small parts of it are used in hundreds of homes and industries for different uses. So money circulation is necessary for the development of a good economy and gambling sector provides that efficiently.
So these were some of the economical affects of the gambling which I considered were worth sharing. Do let me know some of your insights for ” How gambling affects the economy ” in the comments below cause I just love to read other’s pick on the same topic as well. And one thing be known – This is all for the gambling which is legal and the gambler is doing it for fun and only gambles with the money they can afford to loose. No dealing with the one’s who go all in and lose all. It’s for the sensible ones.