There is no experience like spending an evening in a live casino. The atmosphere is electric, with the sound of the slots and the cheers of winners. While online gambling is growing, the physical buildings still have a significant impact on the social, economic and environmental conditions where they exist.
Casino developments have been an important contributor to tourism in recent years. The casinos built in the Asia-Pacific region in particular, including Australia, Macau, Singapore, New Zealand and more have rapidly grown in size. Why? Well, they are one of the most highly profitable sectors of the economies in these regions.
In Macau, the laws around gambling were relaxed in 2002 and since the industry has grown. It reached a record high in 2013 when the sector earned more than a massive $45 billion USD. In Singapore, the live casinos bring in $4.1 billion USD a year. Therefore, for the Macau Government, the taxation from the sector has been a significant source of funds. However, along with this wealth comes other negative economic, social and environmental impacts. Here we explore some of the positives and the negatives of the expansion of casinos in this area. Some of these consequences are tangible and others are harder to measure.
Social impacts
The social impacts of live casinos are some of the most difficult to measure but equally could be considered the most costly. The obvious one is the impact of excessive gambling or gambling addictions of individuals and society. There are related costs to the family and friends of these gamblers, as well as the cost for treatments, legal costs that arise from debt, as well as the need for education for prevention.
Therefore, although money into the Government coffers from gambling is high, the cost of gambling to social services has also been steep. There has been a 163% increase in the social cost of gambling since it was liberalised in 2003. In Nevada, the estimated cost of a compulsive gambler for society is $19711 each.
Consequently, local communities around live casinos might benefit from the jobs and revenues, but the local services are stretched with these additional demands. Yet, overall, it is thought that the presence of casinos in an area improves the lives of those in the community. A study showed that 77% of those living in a district with a casino held a positive opinion on its presence.
There are some concerns about crime in the area and others worry about the problems caused by pathological gamblers to the reputation of a neighborhood. However, there are many studies that show that this concern is overblown.
Economics
Of course, the most important economic assessment to be made is the increase in money in taxation. It can be the saviour of a local economy. However, when considering the economic impacts of casinos, you are also assessing the importance of tourism to an area. It is not just the initial upfront income into an area but also the investment in infrastructure, the local supply chain and other businesses that attract the same clientele for different services such as bars, hotels and restaurants. With the increase in employment levels in an area, the average salary increases too. Therefore, the wealth is shared around an area.
However, other studies suggest that local facilities cannot cope with the services offered by the casino. A live casino often serves food and drink and offers rooms to stay. Therefore, based on the scale that they work, they are too big to compete against for other businesses. In New Jersey, for instance, the number of retail businesses declined by a third and many restaurants closed down – from 243 to 146 upon the arrival of the casinos in the area.
Environment
Live casinos have a more positive impact on the local environment than you might imagine. Usually, they are active in the protection of the natural environment and the preservation of historical buildings. The casino sector also requires better facilities and a general revitalisation of the city landscape. The casinos in Atlantic City also brought with them convention facilities and other infrastructure that rejuvenated the area.
There are obvious concerns too. The influence of increased traffic to the area and the need for parking areas. There is an increase in litter and a general erosion of areas of natural beauty. In Colorado, for instance, the impact of increased traffic jams was particularly pressing. The same occurred in Macau, where residents also noted decrease in the quality of the air and general overcrowding.
As with any sector, live casinos bring positives and negatives to an area and there are always going to be winners and losers.
