The need to make money without hard labor is something most people get interested in. Today most people through the help of gambling have been able to sort out major bills in their life and at the same time some people have ruined their lives with just a single bet. The question today is ’’how does gambling affect the economy?’’ Gambling involves playing an array of games taking risky options that could be favorable or unfavorable depending on the outcome of the game. When its favorable people call it a jackpot, a feeling every gambler loves to experience. What we can term a reward for passion.
The economy of a country could get better when players win or lose but the effect of multiple players losing a bet over time can be very detrimental and can also be a threat to a country development.
When people get addicted to gambling it can be pathological thus they are referred to as pathological gamblers. A good number of these pathological gamblers are very successful while another fraction is at the verge of bankruptcy.
The effect of gambling on economy cannot be over emphasized as it can affect the economy in tons of ways either positively or negatively which would be reviewed.
Some benefits of Gambling in the Economy
- Tax revenue
- Economic growth
Gambling enterprises can lead to employment of a good amount of individuals, with the increasing amount of different betting agencies these individuals can work in various capacities as an agent, marketer and store keeper. As the time progresses they could become owners of a gambling center and later the brand ambassador.
For some gambling centers that have need for entertainers some individuals are employed to entertain gamers and VIP gamers.
In some gaming centers there is need for menial workers such as the cleaners, security, croupiers etc.
Just as the physical gaming market is growing the online gaming market grows as well and there is room for more employment to work as a developer, coder, manufacturer, tech analyst, graphic designer etc. the job openings is endless.
A good gambling enterprise is made up of both the physical gaming and virtual gaming paving way for countless employment opportunities thus eliminating poverty.
Individuals are engaged because some of these gambling enterprises have hotels where most of their foreign players lodge creating more space for employment even outside the gaming sphere.
The government smiles especially when an enterprise pays tax with the current increasing number in gaming networking the government has dimmed it fit to tax local and foreign game enterprises as a way of generating funds or revenue.
The two gaming revenues are Gross gaming revenue and Net gaming revenue. Over the years it has been calculated that taxes generated from gaming revenue has been used to fund major Government projects while in some countries gambling is considered illegal such as Brazil where it’s almost restricted.
Also gambling revenue can be generated online by online gaming or gambling market. To function properly in a state or country it is very advisable to register your business with the specific government authorities.
It’s believed that countries like china who sprang up in a short time has made excessive billions of dollars Macau China made a gross revenue of about 27 billion USD in 2016 from all kinds of gambling including virtual gaming. China has one of the highest gross gaming revenue in the world.
The United States specifically Nevada and New Jersey has generated gross revenue of about 71.1 billion USD annually.
This revenue has been used judiciously by these nations in development and restructuring some of these gaming centers which attracts tourists from all over the world this has added to the revenue as hospitality, transportation, and other basic needs where paid for.
It also brings to a point where foreign currencies are exchanged interchangeably this serve as a boost to the nation economy.
With the increase in employment and tax revenue it can lead to a more stable economy where other government projects can be actualized. Putting in check economic threats such as inflation and recession.
Gambling been classified as a form of entrepreneurship can lead to economic growth by increasing the labor inputs either by hours worked or workers employed, it can also lead to technological advancement especially in virtual gaming where mainly developers and programmers are needed basically.
Gambling has increased various countries gross domestic product (GDP) countries like United States of America, Republic of China, England, Mexico, and Uruguay etc.
A nation grows not just in size but also monetarily by giving foreign investors a chance to build gaming centers such as casinos, lottery centers etc. these gaming centers do not only generate revenue but they also bring tourist from far and across as time has shown tourism also can build up a nation’s economy.
Some negative benefits of gambling in the economy
- Increased crime rate
- Bankruptcy poverty and unemployment
- Health problems
Increased crime rate
Gambling can lead to increased crime rate when stake becomes highly unfavorable, leading to excessive loss. Individuals who has become so addicted to gambling may have to steal to make sure they gamble, some may go ahead to murder. Cases of murder have been reported in various countries as a result of gambling. Some individuals even go as far as taking their own life; gambling suicide is the most common cause of death in Europe.
Gamers after using family life savings to bet in the process losing it sink into depression from which they consider suicide because of the stigma and the fear of facing their family members.
While some partake in cybercrime creating clone website where ignorant users log in sensitive information’s such as bank passwords, bank verification numbers etc. these users get scammed of their money, some of these users still end up committing suicide. The circle of crime continues which sometimes lead to money laundering and extreme racketeering.
Bankruptcy poverty and unemployment
The trio of bitter existence, when gamblers are very addicted they fail to calculate. They incur lots of debt in the quest of coming out of the debt they are submerged. For some the debt is so much they are sacked from work while for others they sign all form of documents which may involve their houses and business as standing collateral. They fail to realize the length they have gone until when they cannot play any longer.
Poverty is inescapable, they become unemployed and bankrupt which could trigger some to a crime filled life while others are lead to suicide.
They distort the economy with high level or amount of criminal activities sometimes leading to financial breach in a country expected gross domestic product (GDP), here unemployment can also affect economic growth as some families becomes poorer due to a rapid drop in labor input and labor employed.
In some countries diversion of companies’ funds to gamble have been recorded which has been one of the primary causes of unemployment in Asia and Europe. Due to Africa poor exchange rate with other continents gambling is not seen as a major threat to the economy but several cases has been reported by top firms in the continent.
Any individual with such criminal case may find it difficult to get employed in future because they are regarded untrustworthy and may require strict supervision which is too much inconvenience to a company the chances of getting employed remains herculean.
Gambling can lead to many health challenges to mention a few losing bet more frequently can lead to mood disorders it can also lead to the over consumption of alcohol and drugs which leads to anxiety disorders and depression. One of the most leading causes of death in Europe and Africa is mental illness.
Just as the physical health is very important the mental health is important too most gamblers are not conscious of their mental state before and after a stake some gamers are hypertensive with interlaced health problems in their family history because some die of stroke or better put heart attack. Mood disorder which is also known as mood swing leads to acute depression this can affect the economy by shutting spaces in mental facilities making the population vulnerable as the greater half of them is prone to mental breakdown this totally cut down the work force or labor force which could lead to a countries poverty and a drastic drop in her gross domestic product (GDP).
Health problems limits an individual as they become totally dependent on the country so invariably they diminish the countries economical progression, reasons because most of these family are already bankrupt they cannot pay their medical bills leaving the Government with more loss as most of its resources would be used for care and management both in the hospitals (physical and mental) or at psychological centers this also bring down the economy.
As the saying goes ‘’health is wealth’’ it’s only the healthy that can make an economy stable and a nation wealthier when the ratio of sick to healthy individuals is not proportionate it can crumble any nation’s economy which could lead to poverty.
A sick man with no house to stay is very difficult to manage often times they don’t come for their treatments even when the bills are already paid by the government which can also lead to loss in the economy some of these individuals would prefer to buy cheap alcohol or take drugs they get in the streets and they totally neglect the facility this again may increase mortality rate in the economy.