Economic Effects of Gambling:

by Jerry "Jet" Whittaker

February 12, 2006

Introduction: 

Problem and pathological gambling bring enormous social, economic, and psychological implications not just only for the gambler but also to the society at large feels these costs that is individuals, families and communities all suffer from problem gambling, and, while it would be impossible to describe all of the repercussions associated with problem gambling.

What are the economic effects on gambling?

The economic effects of gambling to society are under intense debate and also true economic costs are difficult to attribute to problem gambling as we do know that on a personal level, many problem and pathological gamblers as well as their families suffer great economic losses due to gambling. Mostly the gamblers begin to max out credit cards for which they cannot pay the bills, sell off valuable possessions, cannot pay for necessities such as food and clothing, and claim bankruptcy because of gambling hence gambling can be so destructive. 

Some important economic facts related to economic effects are that 40 to 60 percent of cash wagered in casinos is withdrawn from ATMs, either from personal accounts or as cash advances from credit cards according to NORC, 1999 and also in Oregon’s gambling treatment system was in 2002-2003 where the average gambling-related debt was about $23,000. But however over 60 clients reported gambling related debts of over $100,000 and the total gambling related debt, of just those that obtained Lottery funded treatment in Oregon in 2003, exceeded $29.5 million.

Now we know that gambling is not unique to this time instead it has been around for centuries and the effects on families and communities have also been around for a long time, however these include economic as well as societal or social effects.

The positive economic effects of gambling are: there are more jobs, it may provide higher wages due to gambling, also customers drawn outside the state and even support of community through charitable gifts or grants. While some of the negative economic effects of gambling are such as it may be potential to crime and also it may be that money is used for gambling and not for family living, church, charities. Even the money is needed for treatment of compulsive gamblers and more law enforcement is needed.

What are the signs of gambling?

Some important signs of gambling are such as spending an excessive amount of time gambling at the expense of job or family time, or even increasing the frequency and the amount of money gambled, also continuing to gamble despite negative consequences such as large losses or work or family problems caused by gambling or even creating a special and intense pleasure, an aroused sense of being in action.

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