Casino Tourism: The Economic Impact on Local Communities

It can be easy to frown when a new casino is built. Oftentimes, all the community can see is the fact that a gambling establishment is built, neglecting the fact that casinos often provide several benefits to local communities. So much so, that some of the best places to live are towns with casinos.

But why is living near a casino so great? Keep reading as we discuss the economic impact of local casinos in various cities around the world.

Economic Benefits of Casinos

1. Lower/No Taxes

The best benefit in our mind of living near a casino is the fact that in many cities/states where casinos are located, the locals pay no state taxes. This is specifically true in Nevada, where all state taxes are paid by the casinos.

Even in areas where residents are still required to pay taxes, casinos often pay increased taxes to the state government, funding a variety of necessary programs and systems. The number one destination for taxes collected by states as tax revenue is the education system.

2. New Jobs

Casinos are often one of the largest employers in the area. Not only do they need kitchen staff and bartenders, but they also need dealers, security guards, and high-level marketing associates. This means that when a casino comes to town, it can prove vital in revitalizing an area that has been subject to an economic downturn.

This has especially proven to be true in the United States when the government legalized gambling on Native American reservations in 1988. This provided some much-needed jobs (and revenue) to these areas. Now, on reservations with gambling, it is common to find that over half of the individuals employed on the reservation are employed by the casino.

3. Tourism Income

Of course, where there is a casino, there is tourism. Gambling isn’t legal everywhere, and people who enjoy gambling tend to travel for it, often visiting areas they normally wouldn’t otherwise. While they are likely to spend a fair amount of their money on the casino floor, they also frequently support restaurants, hotels, retail sales, and other tourism venues in the area.

Additionally, once an area is established as a tourism hub, you will also attract individuals looking to live there as tour guides, entertainers, and more. Tourism brings in money, which, as a result, brings new individuals wishing to live in the space. This, in turn, boosts all industries, such as building, furniture, cars, and more, as more people upend their lives to move to be near a casino.

4. Higher GDP

On a country-wide scale, gambling can increase the GDP. This is specifically true in Macau, which has historically raised the GDP of the country by 51%--mostly because it is one of the only legal places to gamble in Asia. While this doesn’t typically affect other countries, it is something worth noting.

This is especially true because gambling tends to boost retail sales. This is for several reasons, one, because people who are vacationing tend to buy more than those at home, and two, because when people do win money at a casino (which is rare) they often splurge on items they wouldn’t normally buy. This is why there are so many shopping malls typically attached to casinos.

5. Social Growth

As mentioned above, areas with legal gambling and casinos tend to attract people—both tourists and those looking to make money from the tourists. A prime example of this is Las Vegas, which is a city based almost solely on gambling. Though Las Vegas is an extreme example, it is easy to see the social growth in areas that legalize gambling.

What was once a small desert oasis is now a massive city with over 2 million residents. While many are still employed by the casino industry, many are not, living life just as they would in any other city in the United States.

Additionally, individuals who grow up around legal gambling tend to be more open-minded than those who don't. Much of this is attributed to the fact that gambling brings in a lot of tourism—exposing individuals to people they may not have run into in this life otherwise.

The Economic Downsides of Casinos

There is always a dark side to every topic, and when it comes to gambling, it’s important to note that individuals living and working in the area with the casinos will need to have difficult conversations with their children. It isn’t always easy to grow up in an area where gambling is “normal” and “essential,” and sometimes kids can grow up without impulse control in these spaces.

Now, this doesn’t mean that casinos should all be illegal, just that individuals living and working in these areas need to be aware of the effect on their children. It is always important to discuss with them the dangers of gambling while also ensuring not to demonize it. Simply explain that while casinos are good for the economy, they can also cause problems when individuals can’t stop.

It is also important to discuss the fact that some people can’t stop gambling, no matter how hard they try. Scientists have proven over the years that having an addictive personality is something in an individual’s genes that cannot be changed. This means, whenever a casino pops up in an area, there will be some individuals affected so badly that they may start gambling and never stop.

If you are reading this as an individual who can’t stop gambling, ensure you reach out to the national hotline at 1-800-GAMBLER immediately.

Overall, there are both ups and downsides to a casino moving to an area, but in terms of economics, casinos are very good for the economy. Of course, there are some dark sides, mostly in the social aspects, but if you are reading this because a casino is coming to your town, don’t fret, as it is likely better for everyone in your town!