Economic Costs of Gambling

[mv1986]

Another topic talking about gambling addictions? This is netting a lot of subjects. I can talk about this because I've already fallen into this addiction, I luckily didn't get lost in it and managed to stop at an early stage.

I'm in favor of laws that implement high rates for everything that is harmful to health... smoking, alcohol, prostitution, gambling. Prohibition is the worst way because it leads addicted people to seek illegal means, which is much worse.

With the fees collected, governments can better plan investments to remedy these problems and invest in prevention measures too. I've also seen countries where gambling houses have certain "benefits" when they can show that they have control measures in the games (a requirement in the declaration of income and monitoring of players who mostly consume their services).

I think we are discussing a slippery slope problem crosses with individual preferences. When you say prohibition leads addicted people to seek illegal means, high tax rates could achieve exactly the same. For some players at much lower rates, for others at higher rates. We wee that already in everyday life with other income streams. High tax rates can lead to tax avoidance/evasion while others even try to get around a 5% tax rate in Cyprus. It really depends on the person, but when addiction is involved or criminal energy anyway, it doesn't matter whether it is prohibition or high rates, nothing will probably stop them.

If you are a heavy weed smoker and you pay 20$ per gram in a pharmacy but you have a friend who sells it for 10$, there is quite a big probability you'll take it from your friend (not you exactly, but in general ).

[Sanitough]

Gambling is a business where the dumb money replaces itself with smart money. It is as simple as this. The odds are against the players' favor. Otherwise, the casinos wouldn't exist. If you know that information, you can't ruin yourself financially even if you wanted to.

Most people that lose their life savings don't know that or don't care hence the name "dumb money".

But when you go to a restaurant and drink $ 100 wine (which costs $ 20 in a regular store), you also have no chance of getting a refund or even saving your money  But a lot of people behave like this and it suits them, they consider such spending to be acceptable. I think the majority of casino visitors think the same - it's simple spending on entertainment, not dumb money.

I agree with that, most casino goers are just having fun, they can even spend money on drinks that are expensive just to enjoy their time in a casino, so there's nothing to complain about, we just need to change our mindset and consider gambling as entertainment so it will not hunt us and we are safe from getting addicted.

[DoublerHunter]

~snip~

But when you go to a restaurant and drink $ 100 wine (which costs $ 20 in a regular store), you also have no chance of getting a refund or even saving your money  But a lot of people behave like this and it suits them, they consider such spending to be acceptable. I think the majority of casino visitors think the same - it's simple spending on entertainment, not dumb money.

I agree with that, most casino goers are just having fun, they can even spend money on drinks that are expensive just to enjoy their time in a casino, so there's nothing to complain about, we just need to change our mindset and consider gambling as entertainment so it will not hunt us and we are safe from getting addicted.

^ That is why we gamble on what we can afford because it is purely entertainment not your source of income. You guys, the example above was right, just like watching a movie in a theater, you will not entertain very well if you won't buy popcorn and of course, drinks which additional cost. Those people who are in addicted to gambling are just they are greedy because they gamble just to aim for money, and even though they can't afford it they will always looking ways just to continue their habit.

[mv1986]

~snip~

But when you go to a restaurant and drink $ 100 wine (which costs $ 20 in a regular store), you also have no chance of getting a refund or even saving your money  But a lot of people behave like this and it suits them, they consider such spending to be acceptable. I think the majority of casino visitors think the same - it's simple spending on entertainment, not dumb money.

I agree with that, most casino goers are just having fun, they can even spend money on drinks that are expensive just to enjoy their time in a casino, so there's nothing to complain about, we just need to change our mindset and consider gambling as entertainment so it will not hunt us and we are safe from getting addicted.

^ That is why we gamble on what we can afford because it is purely entertainment not your source of income. You guys, the example above was right, just like watching a movie in a theater, you will not entertain very well if you won't buy popcorn and of course, drinks which additional cost. Those people who are in addicted to gambling are just they are greedy because they gamble just to aim for money, and even though they can't afford it they will always looking ways just to continue their habit.

I would be very careful to confuse addiction with greed. It is well known that addiction can be a clinical condition. Now you could say greed, too, but the two are in no way to be confused with each other. You know, when there is this father of three who has a wife but just can't stop to gamble and loses his house and the whole family? In most of the cases I bet it has absolutely nothing to do with greed. Addictions are really really bad and usually need treatment more often, depending on the damage is already causes for that person. There are people who are addicted to stealing. Take this quote I just googled:

"Kleptomania is a recurrent failure to resist the urge to steal. In most cases of kleptomania, the person steals things that they don't need."

They aren't stealing because they are greedy. There is just an error in their head which they can't get under control or fixed. I see it the same way with gambling addiction. I admit though that maybe even greed could represent a kind of addiction in itself.

[South Park]

Gambling is very dangerous and harmful to the society because its keeps one in a particular place and while away your time without you knowing with statistics not more than 30% of gamblers normally wins a game.. it’s very addictive to some persons more than drugs, because some persons uses the last money they have to place a bet and be ready for the results without reasoning on what to do next.. I’m of the opinion that 18 years shouldn’t  be an ideal age for gambling, the age before you can gamble should be the range of adulthood

While it is true that addiction can happen the majority of the gamblers can enjoy it without suffering any bad effects on their lives and if anything I will be more worried about people being addicted to their smartphones than gambling addiction as it is way more common, also in most countries people are considered to be adults at 18 years old so it is impossible to stop them from gambling if that is what they want to do, unless you propose that age is pushed even farther back which I do not think it is going to be very popular among the young population.

[BTCLiz]

Gambling is very dangerous and harmful to the society because its keeps one in a particular place and while away your time without you knowing with statistics not more than 30% of gamblers normally wins a game.. it’s very addictive to some persons more than drugs, because some persons uses the last money they have to place a bet and be ready for the results without reasoning on what to do next.. I’m of the opinion that 18 years shouldn’t  be an ideal age for gambling, the age before you can gamble should be the range of adulthood

While it is true that addiction can happen the majority of the gamblers can enjoy it without suffering any bad effects on their lives and if anything I will be more worried about people being addicted to their smartphones than gambling addiction as it is way more common, also in most countries people are considered to be adults at 18 years old so it is impossible to stop them from gambling if that is what they want to do, unless you propose that age is pushed even farther back which I do not think it is going to be very popular among the young population.

Could you please underline this claim with facts? This thread should be based on facts rather then based on beliefs. So do you know about a study stating that the majority of gamblers can enjoy it without suffering?

[KTChampions]

While it is true that addiction can happen the majority of the gamblers can enjoy it without suffering any bad effects on their lives and if anything I will be more worried about people being addicted to their smartphones than gambling addiction as it is way more common, also in most countries people are considered to be adults at 18 years old so it is impossible to stop them from gambling if that is what they want to do, unless you propose that age is pushed even farther back which I do not think it is going to be very popular among the young population.

Could you please underline this claim with facts? This thread should be based on facts rather then based on beliefs. So do you know about a study stating that the majority of gamblers can enjoy it without suffering?

I do not have such statistics (although I would look at it with interest if someone provided the relevant research), but I can assume that if a significant number of gamblers suffered from their addiction, then gambling would be prohibited everywhere. By the way, would it be nice if you first clearly defined what you mean by suffering? The range of this concept is quite wide.

[Hypnosis00]

While it is true that addiction can happen the majority of the gamblers can enjoy it without suffering any bad effects on their lives and if anything I will be more worried about people being addicted to their smartphones than gambling addiction as it is way more common, also in most countries people are considered to be adults at 18 years old so it is impossible to stop them from gambling if that is what they want to do, unless you propose that age is pushed even farther back which I do not think it is going to be very popular among the young population.

Could you please underline this claim with facts? This thread should be based on facts rather then based on beliefs. So do you know about a study stating that the majority of gamblers can enjoy it without suffering?

I do not have such statistics (although I would look at it with interest if someone provided the relevant research), but I can assume that if a significant number of gamblers suffered from their addiction, then gambling would be prohibited everywhere. By the way, would it be nice if you first clearly defined what you mean by suffering? The range of this concept is quite wide.

I agree with that, however, that number might only be a small percentage only if compared to the total number of people who are gambling, the reason why gambling platforms still exist and in fact, their industry is improving and continue to be one of the most lucrative business on earth. Gambling addiction is a gambler's fault, not on the gambling site.

[ReiMomo]

While it is true that addiction can happen the majority of the gamblers can enjoy it without suffering any bad effects on their lives and if anything I will be more worried about people being addicted to their smartphones than gambling addiction as it is way more common, also in most countries people are considered to be adults at 18 years old so it is impossible to stop them from gambling if that is what they want to do, unless you propose that age is pushed even farther back which I do not think it is going to be very popular among the young population.

Could you please underline this claim with facts? This thread should be based on facts rather then based on beliefs. So do you know about a study stating that the majority of gamblers can enjoy it without suffering?

I do not have such statistics (although I would look at it with interest if someone provided the relevant research), but I can assume that if a significant number of gamblers suffered from their addiction, then gambling would be prohibited everywhere. By the way, would it be nice if you first clearly defined what you mean by suffering? The range of this concept is quite wide.

I agree with that, however, that number might only be a small percentage only if compared to the total number of people who are gambling, the reason why gambling platforms still exist and in fact, their industry is improving and continue to be one of the most lucrative business on earth. Gambling addiction is a gambler's fault, not on the gambling site.

We can not yes just blame gamblers. But I would say, addiction depends on its existence. I mean, as long as either gambling sites, tobaccos, alcohols and etc are available, none can be stopped from utilizing / using it. So, in other words, their existence is a kind of temptation to use though. I remember, early in 90s, lotteries were sold and many were addicted to it. But now they are all stopped in many places and this diverted its users to other activities. So, everyone is responsible for addiction and not only who gambles.

[stadus]

While it is true that addiction can happen the majority of the gamblers can enjoy it without suffering any bad effects on their lives and if anything I will be more worried about people being addicted to their smartphones than gambling addiction as it is way more common, also in most countries people are considered to be adults at 18 years old so it is impossible to stop them from gambling if that is what they want to do, unless you propose that age is pushed even farther back which I do not think it is going to be very popular among the young population.

Could you please underline this claim with facts? This thread should be based on facts rather then based on beliefs. So do you know about a study stating that the majority of gamblers can enjoy it without suffering?

I do not have such statistics (although I would look at it with interest if someone provided the relevant research), but I can assume that if a significant number of gamblers suffered from their addiction, then gambling would be prohibited everywhere. By the way, would it be nice if you first clearly defined what you mean by suffering? The range of this concept is quite wide.

I agree with that, however, that number might only be a small percentage only if compared to the total number of people who are gambling, the reason why gambling platforms still exist and in fact, their industry is improving and continue to be one of the most lucrative business on earth. Gambling addiction is a gambler's fault, not on the gambling site.

As they say, the gambling industry is a billion-dollar industry and it's just amazing to see that despite the pandemic, the gambling industry is still very profitable. According to this reputable site, U.S. gambling revenue this year has broken the previous record.

https://www.forbes.com/sites/willyakowicz/2021/08/10/us-gambling-revenue-to--break-44-billion-record-in-2021/?sh=7ef3c6bc677b

U.S. Gambling Revenue To Break $44 Billion Record In 2021

[DoublerHunter]

~snip~
Gambling addiction is a gambler's fault, not on the gambling site.

^ Definitely right and I totally agree with this, that is not the fault of the gambling casino, it is on us as gamblers who should have control ourselves not to become addicted to gambling. I don't understand why others and blame gambling sites that cause the economic cost of gambling, which is a completely irrelevant question. There are so many forms of addiction that we must take an action not only in gambling. So it the problem will rely on us how we can handle the gambling addiction, not on the gambling itself.

[Sanitough]

~snip~
Gambling addiction is a gambler's fault, not on the gambling site.

^ Definitely right and I totally agree with this, that is not the fault of the gambling casino, it is on us as gamblers who should have control ourselves not to become addicted to gambling. I don't understand why others and blame gambling sites that cause the economic cost of gambling, which is a completely irrelevant question. There are so many forms of addiction that we must take an action not only in gambling. So it the problem will rely on us how we can handle the gambling addiction, not on the gambling itself.

There are people who are irresponsible, you just have to understand that.

They made a mistake but they can't accept the mistake, instead blame the gambling site.
Just like when a person is getting drunk because of Alcohol, it's not right to blame the alcohol, it's the person's mistake on why he drinks too much that resulted in him getting drunk, I hope they'll understand how simple it is.

[STT]

Largest mistake you can make is within money management while playing the game.  Expecting too much too soon or making overly large bets that cannot be sustained will lead to a loss and frustration more often.
  But to have a simple plan executed with dedication can pay off,  be able to return every day to play and master that game and you will have the durability to experience both winning and losing sections of the game, learning better to judge when is most likely every day you play.   Never try to rush a win, it can be longer then expected in arriving.

[iv4n]

~snip~
Gambling addiction is a gambler's fault, not on the gambling site.

^ Definitely right and I totally agree with this, that is not the fault of the gambling casino, it is on us as gamblers who should have control ourselves not to become addicted to gambling. I don't understand why others and blame gambling sites that cause the economic cost of gambling, which is a completely irrelevant question. There are so many forms of addiction that we must take an action not only in gambling. So it the problem will rely on us how we can handle the gambling addiction, not on the gambling itself.

People have a tendency to blame everything and everyone else except themselves! I don't believe in addictions, I believe in people who are making their choices! We can all chose to abuse something, but abusing leads to contra effects, there's no action without reaction! When people get themselves into some deep problem, they start thinking about what went wrong, but it's already too late!
It's something we all go through... and we all learn in the easier or harder way! And of course, there is a group of people that never learns... sadly but it's the truth!

[fortunecrypto]

1. Gambling in fact has many negative externalities. If someone gets addicted, the likelihood is much higher to be depressed. Depression is factor, which leads to high costs for the society.

2. Gambling addiction leads to economic costs because of crime actions. Other market actors have to increase their security standards, which means higher costs.

3. Many gambling addicts go as a consequence to jail. Jail means EXTREMELY high costs to society.

What are your thoughts on this topic?

It puts a high cost to the respective family of gamblers but government prefer the money coming in the gambling casinos and online casinos, the gambling industry is a multi-billion dollar industry and its taxes and contribution to creating more jobs is something that the government weighs more important than victims of excessive gambling, they can only put up rehabilitation and a strong warning to the gamblers and their families about the harm of gambling.

[Twinkledoe]

~snip~
Gambling addiction is a gambler's fault, not on the gambling site.

^ Definitely right and I totally agree with this, that is not the fault of the gambling casino, it is on us as gamblers who should have control ourselves not to become addicted to gambling. I don't understand why others and blame gambling sites that cause the economic cost of gambling, which is a completely irrelevant question. There are so many forms of addiction that we must take an action not only in gambling. So it the problem will rely on us how we can handle the gambling addiction, not on the gambling itself.

People have a tendency to blame everything and everyone else except themselves! I don't believe in addictions, I believe in people who are making their choices! We can all chose to abuse something, but abusing leads to contra effects, there's no action without reaction! When people get themselves into some deep problem, they start thinking about what went wrong, but it's already too late!
It's something we all go through... and we all learn in the easier or harder way! And of course, there is a group of people that never learns... sadly but it's the truth!

Unfortunately, a lot of people failed to see themselves on the situation. Or maybe, they don't just want to admit it to themselves about their addiction. So yeah, the casino itself should not be blamed about the gambler's situation but himself. This is why gambling business is thriving because let's face the fact that the longer the gambler is playing, the better for their business. And they don't care where the gambler gets his money.

[KTChampions]

As they say, the gambling industry is a billion-dollar industry and it's just amazing to see that despite the pandemic, the gambling industry is still very profitable. According to this reputable site, U.S. gambling revenue this year has broken the previous record.

https://www.forbes.com/sites/willyakowicz/2021/08/10/us-gambling-revenue-to--break-44-billion-record-in-2021/?sh=7ef3c6bc677b

U.S. Gambling Revenue To Break $44 Billion Record In 2021

An interesting article, thank you, it's a pity that there is no information on the profitability of this business or, roughly speaking, about the total turnover of money. In fact, the figure of 44 billion looks suspicious to me, while individual firms began to exceed a trillion dollars in capitalization, the whole industry here generates only a few tens of billions of profits? 

[jostorres]

1. Gambling in fact has many negative externalities. If someone gets addicted, the likelihood is much higher to be depressed. Depression is factor, which leads to high costs for the society.

2. Gambling addiction leads to economic costs because of crime actions. Other market actors have to increase their security standards, which means higher costs.

3. Many gambling addicts go as a consequence to jail. Jail means EXTREMELY high costs to society.

Definitely gambling got lots of externalities to our society from both gamblers and casinos end. Unfortunately most of the government are not having any kind of regulation to consider/take care of common people from those economic costs of gambling. It is kind of unique thing because the responsibility purely lying on gamblers but in some sense gambling houses also highly responsible and must take actions at least from their end.

Gambling houses must work in a way that gambling should not become addiction to gamblers but that will end up in negative consequence for their revenue which is the reason why they are not bothering about externalities of gambling.

[ongkok87]

There are also casinos where you do not have to pay taxes. I don't know about whether the casino has to pay taxes, but then it wouldn't be too good for the economy. Online earnings often disappear on offshore accounts. Then the government gets it all wrong.

[mindrust]

As they say, the gambling industry is a billion-dollar industry and it's just amazing to see that despite the pandemic, the gambling industry is still very profitable. According to this reputable site, U.S. gambling revenue this year has broken the previous record.

https://www.forbes.com/sites/willyakowicz/2021/08/10/us-gambling-revenue-to--break-44-billion-record-in-2021/?sh=7ef3c6bc677b

U.S. Gambling Revenue To Break $44 Billion Record In 2021

An interesting article, thank you, it's a pity that there is no information on the profitability of this business or, roughly speaking, about the total turnover of money. In fact, the figure of 44 billion looks suspicious to me, while individual firms began to exceed a trillion dollars in capitalization, the whole industry here generates only a few tens of billions of profits? 

Most of that $44 billion is coming from Vegas alone probably. Compared to Vegas, online casinos became much bigger I think and most of those online casinos don't operate on the US soil. Their headquarters are on some offshore island.  Of course they do that to pay less taxes. (or not at all) 

Most of them don't even accept the US players so they won't get bitch slapped by the US law.