Gaming Management

Explain in no more than 1,400 words how legal and illegal forms of gaming result in both benefits and drawbacks to society. Use specific examples found in your research.

I think that cities should allow more gambling casinos because society does benefit from them. Some people ask do the economic benefits justify the social costs of the ever growing industry of gambling? Opponents will argue that increased availability of gambling, access to funds and expanded hours of operation have led to an increase in pathological gambling. While this might seem like a logical assumption to some, it is not valid. (Fahrenkopf p.113) The economic benefits are far greater than the social costs, and the gambling industry will enhance society as a whole. Gambling casinos bring better investment and economic developments which cities benefit from, as well as create jobs, and enhance tax revenues. Jobs are an economic benefit that the gambling industry generates in areas that have high unemployment. Industry representatives have often identified employment and economic activity as the principal benefit to the economy. Most analysis of the gambling industry is typically based on input-output relationships at the national or regional level. (Fraser 6b) This is especially true when casinos are being built. The fields of employment range from construction (casino and hotel building), internal and external building and ground maintenance, card dealers, security, hotel, office, and management personnel. Employment in the American gambling industry is comparable to other industries in terms of wages and benefits. Annual salaries averaged $26,000 in the largest casinos, $20,500 in smaller commercial casinos, and $18,000 in tribal casinos. In 1996, more than half a million people were employed by the legal gambling industry and earned more than $15 billion in wages. The investment and economic development benefits are generated by short supply and high demand for goods and services from the patrons who gamble, and the employees who work at these gambling entities. The variety of goods and services demanded can be gasoline, grocery, restaurants, entertainment, bank services, or cheap overnight accommodations. This short supply and high demand indicate a diverse financial market where profits can be made. Profits that exist within the diverse financial market give cause for people to make the investments in different business entities. In Chicago, Mayor Richard Daley hopes that his city can reap the economic benefits of a casino soon. He has joined up with business and labor groups to back plans of a casino on Lake Michigan that they estimate would generate up to $1 billion a year for the state and local economies (Lannan 3). Enhanced tax revenues are another economic benefit generated by the gambling industry, because gambling entities pay substantial taxes to the local, state, and federal government agencies. These agencies use the tax revenues to enhance the public school systems, buildings, streets, transportation, and social services. The added tax revenue generated by gambling has aided in keeping personal income rates from increasing. An example of a gambling entity that does help support the school system is in Indiana. On August 7th, 2005 it was the ceremonial groundbreaking in French Lick for the state's newest casino. Accordingly to reporter Michele McNeil, "This construction kickoff comes after local officials and Blue Sky Casino executives signed off on an agreement that details how Orange County communities will benefit from the project." Blue Sky Casino will work with local officials to improve the local airport, build a town promenade and market the casino to people within 250 miles. Local school districts will benefit too, they will split $250,000 a year for capital construction projects or loan payments and will also get money to help students with textbook rental fees (McNeil 1). A recent American study demonstrates that gambling improves the overall socioeconomic health of a community in which the gambling occurs. The study concluded that the "casino effect" does not significantly increase either crime or bankruptcy. Proximity to a casino, however, significantly increases per-capita casino spending, income, and employment; and decreased the percentage of unemployment, the number of tax dollars spent on welfare payments, and government transfer payments. Local economies with legalized gambling experience growth in the construction trades, the hotel and hospitality industries, and the recreation and amusement sector. This is why I think that there should be more legalized gambling casinos in cities.

In a study performed by Kerby Anderson of Probe Ministries, a Christian organization that investigates hot topics in America today, he states that there are twelve million compulsive gamblers in the United States. Out of this twelve million, 96% began gambling before the age of 14. He also reported that the average compulsive gambler has debts exceeding $80,000. This means that for this class, if we all grow up to be compulsive gamblers, all but one of us will have started gambling by now, and we will all one day be in extreme debt. Today I will be informing you all how dangerous gambling can be. I will be talking about what good comes from gambling, the negative effects of gambling, and why gambling is a problem. In everything in life there is always some good. To gambling, there are some advantages that affect society economically. According to a study performed by the University of Minnesota, when casinos come into an area, property value around the casino will almost always increase. The casino also creates jobs so fewer people in the area are unemployed. The casino also attracts motels and restaurants that will come into the area. Most casinos are owned by Native American tribes. The casino will raise the income of individuals that belong to the Native American tribe.  Along with these economic advantages there are also social advantages. People who work for the casino or the new places around the casino will often feel better about their employment. All people have problems in life. These people must always deal with the obstacles life puts in their way somehow. Some people might use the casino to get a break from these problems and pressures that life places in their way.  The only problem with the good things in life is that they usually bring some bad things with them. To gambling, there are just as many, if not more, disadvantages that come with the advantages that it brings. Some of these are economic. Gambling has been proven to be addictive. When people have an addiction that calls for the need of money, they need to get this money one way or another. This leads to people going into debt or committing crimes such as fraud, embezzlement, and thefts. This causes for a need for more law enforcement. Another problem with casinos is that money begins to circulate within the casino system and it begins to cause problems. The money that circulates in the casino needs to be used to improve or keep up with roads and public facilities in that area. There are also social disadvantages to gambling. First off, gambling can become addictive. This causes people to lose a compulsive gambler's trust and the compulsive gambler's work to suffer. Gambling also causes families to break apart because they lose trust in each other. In fact, divorce rates are higher in families in which at least one of the adults is a compulsive gambler.  People describe a compulsive gambler as many different things. A professor at the University of Minnesota defines compulsive gambling as "the inability of a person to resist the urge to gamble. It takes control of people, causing them to do and think things that are not what they personally value. A sure sign of addiction is the need to deceive both yourself and others by lying, denying, or covering up." Compulsive gambling is often described as the purest form of addiction. It is known as this because other addictions such as drug or alcohol addiction involve some sort of chemical, but compulsive gambling is purely psychological. There are ways to stop the problem of compulsive gambling. One way is to completely ban gambling. This is probably not the best solution for the people who do not abuse their right to gambling. Another way is to strictly limit the amount of money one can use by gambling and limit the amount of times a person can gamble each month. This is a good solution because people can gamble, but they can use their right in a safe way.  You now know how dangerous gambling can be to society and what comes along with gambling. We have discussed what good comes from gambling, the negative effects of gambling, and why we should keep gambling out of society. I want to leave you with a story about a guy named John. He and his wife found out that their son was in trouble as a result of gambling. They bailed him out of jail for the price of $3,400. That was seven years ago. Since then, John has bailed him out of jail many times. His son has lost three jobs and his wife divorced him. His two small daughters often cry because he would rather spend time at the casino than spend time with them. 

Works Cited Fahrenkopf Jr., Frank J. "Legalized Gambling Benefits Local Economy." Gambling Opposing Viewpoints.Ed.James D. Torr. Detroit: Gale Group, 2002. 107-115 "Gambling with Our Future." Fraser Institute Digital Publication.  February 2002 McNeil, Michele. "Casino Project Ready to Roll." Indianapolis Star.  7 Aug. 2005. 1-2. EBSCOHost. College of Lake County lib.  22 Sept. 2005 . Lannan, Maura Kelly. "Casinos making river towns look like winners". Chicago Tribune. 17 April 2005. 68. ProQuest. College of Lake County Lib. 22 Sept. 2005.