Economic Costs of Gambling

[dunfida]

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? 

For businesses to be more profitable, they will not declare everything their earn, the data is only based on the amount declared but in reality, they are making more than they declared. However, it's just speculation in our mind since we have no evidence, but as a mature person who is in business as well, I know how accountant does to make the business minimize the tax responsibility, and that is by reducing income and increasing expenses per record.

Hmmm ... to be honest, I can't seriously take the idea that in a country with very tough tax laws, where you can easily be jailed for tax evasion, someone does something like that. I think the discussed figures are very close to reality, even if there are some inaccuracies. Of course, there is always a black market, but we are talking about legal business, so we can ignore it.

That's happening mostly in countries where regulators are corrupt, the company does not pay the right taxes and when they are audited and found out the tax deficiencies, they will just settle with the auditors and pay them to settle the problem between them, so the government will not make the right revenue here because it goes to the pockets of the corrupt tax regulators.

Common things that do happen specially into known corrupt countries where these settlements do really happen once those establishments didnt really pay up tax well.You could really expect that there would be some

arrangements that would happen behind the curtains and would ending up that those money would really just go into the pockets of those corrupt officials.

Is this something new? No its been a normal scenario that could happen from time to time and lets embrace this sad reality.

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[Vaculin]

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? 

For businesses to be more profitable, they will not declare everything their earn, the data is only based on the amount declared but in reality, they are making more than they declared. However, it's just speculation in our mind since we have no evidence, but as a mature person who is in business as well, I know how accountant does to make the business minimize the tax responsibility, and that is by reducing income and increasing expenses per record.

Hmmm ... to be honest, I can't seriously take the idea that in a country with very tough tax laws, where you can easily be jailed for tax evasion, someone does something like that. I think the discussed figures are very close to reality, even if there are some inaccuracies. Of course, there is always a black market, but we are talking about legal business, so we can ignore it.

That's happening mostly in countries where regulators are corrupt, the company does not pay the right taxes and when they are audited and found out the tax deficiencies, they will just settle with the auditors and pay them to settle the problem between them, so the government will not make the right revenue here because it goes to the pockets of the corrupt tax regulators.

Common things that do happen specially into known corrupt countries where these settlements do really happen once those establishments didnt really pay up tax well.You could really expect that there would be some

arrangements that would happen behind the curtains and would ending up that those money would really just go into the pockets of those corrupt officials.

Therefore even if how big the tax for casinos, it is still up to the implementors because if they don't implement it properly, the government would still not be able to achieve their target as these officials will only become richer from stealing the money of the people.

Is this something new? No its been a normal scenario that could happen from time to time and lets embrace this sad reality.

No in our country, lol.

[KTChampions]

Hmmm ... to be honest, I can't seriously take the idea that in a country with very tough tax laws, where you can easily be jailed for tax evasion, someone does something like that. I think the discussed figures are very close to reality, even if there are some inaccuracies. Of course, there is always a black market, but we are talking about legal business, so we can ignore it.

That's happening mostly in countries where regulators are corrupt, the company does not pay the right taxes and when they are audited and found out the tax deficiencies, they will just settle with the auditors and pay them to settle the problem between them, so the government will not make the right revenue here because it goes to the pockets of the corrupt tax regulators.

Sure. This is constantly happening in undeveloped countries - the most profitable sectors of the economy (where much intelligence is not needed) are controlled by corrupt officials and it is difficult to find real numbers there, since everything is hidden. But in this particular case, the conversation was about the United States, so such small (relatively) numbers surprised me. However, I tend to trust them because in the USA it is quite dangerous to joke with the law.

[Sanitough]

Hmmm ... to be honest, I can't seriously take the idea that in a country with very tough tax laws, where you can easily be jailed for tax evasion, someone does something like that. I think the discussed figures are very close to reality, even if there are some inaccuracies. Of course, there is always a black market, but we are talking about legal business, so we can ignore it.

That's happening mostly in countries where regulators are corrupt, the company does not pay the right taxes and when they are audited and found out the tax deficiencies, they will just settle with the auditors and pay them to settle the problem between them, so the government will not make the right revenue here because it goes to the pockets of the corrupt tax regulators.

Sure. This is constantly happening in undeveloped countries - the most profitable sectors of the economy (where much intelligence is not needed) are controlled by corrupt officials and it is difficult to find real numbers there, since everything is hidden. But in this particular case, the conversation was about the United States, so such small (relatively) numbers surprised me. However, I tend to trust them because in the USA it is quite dangerous to joke with the law.

Tax evasion is a serious case, the USA is strictly implementing the law that's why they benefited from the taxes they will get from casinos, and they should be an example of other countries if they want to fully maximize the revenue of taxes, it actually starts with the strict implementation of the law, this corrupt officials, however, are not afraid of the law because they know they can also pay people to keep them doing their corrupt business. What's worse is if everyone is coordinated in making corrupt practices, so it will result in a country going down and the poor will struggle more.

When we say corruption, it does not happen in a certain industry only, it could happen to all so the effect is really huge.

[fortunecrypto]

If a player plays daily, then he has a daily adrenaline rush into the circulatory system.  This destroys the human body. 

Therefore, daily gambling is harmful.

As long as the adrenaline is focus in gambling I don't think there will be a cure, the excitement of playing in a gambling venue online or offline create an adrenaline rush and this is something that makes the gambler alive, the professional can cure by giving the gambler an alternative to focusing the energy, it could be anything like playing basketball or painting there are many things to redirect the energy.

[xSkylarx]

If a player plays daily, then he has a daily adrenaline rush into the circulatory system.  This destroys the human body. 

Therefore, daily gambling is harmful.

As long as the adrenaline is focus in gambling I don't think there will be a cure, the excitement of playing in a gambling venue online or offline create an adrenaline rush and this is something that makes the gambler alive, the professional can cure by giving the gambler an alternative to focusing the energy, it could be anything like playing basketball or painting there are many things to redirect the energy.

Agreed, it's the same with carnival rides that give you an adrenaline rush and make you want to try again, as well as games that make you feel the rush and make you want to try again and again in the hopes of winning. The feeling of winning in gambling is unlike any other that I can describe, and it is extremely addictive, unlike playing games or any physical games. It makes you feel extremely happy and amazed in ways that no words can express, but it will make the gambler addicted to it.

[Poker Player]

As long as the adrenaline is focus in gambling I don't think there will be a cure, the excitement of playing in a gambling venue online or offline create an adrenaline rush and this is something that makes the gambler alive, the professional can cure by giving the gambler an alternative to focusing the energy, it could be anything like playing basketball or painting there are many things to redirect the energy.

Agreed, it's the same with carnival rides that give you an adrenaline rush and make you want to try again, as well as games that make you feel the rush and make you want to try again and again in the hopes of winning. The feeling of winning in gambling is unlike any other that I can describe, and it is extremely addictive, unlike playing games or any physical games. It makes you feel extremely happy and amazed in ways that no words can express, but it will make the gambler addicted to it.

That is the problem. Many times problem gamblers know that what they are doing is wrong, that they should stop, that they are losing more than they can. But it's not a question of rationality, it's an emotional question. For someone who has had serious problems with gambling the only solution is to quit completely, in the same way that for an alcoholic the solution is not to drink another drop. Never. A single beer usually leads to the above pattern of self-destruction and for a problem gambler who has recovered, a single gamble usually triggers disaster.

[Oshosondy]

1.- The gambling addict, who usually gambles as much of the time as possible, and does not mind risking a lot and losing it, in general these types of people tend to lose everything, and have many problems and pretend that nothing happens.

2.-The other type of player who usually goes to the casinos and watch them play, they play little, usually they are in the casinos to see and take advantage of the food and drinks (this in the traditional casinos) the case of the casinos online there are still them, I think they play very little but they like to be there, and that can also be treated as an addiction because they stop doing the normal activities of a common person.

The second one is not the characteristics of a gambling addict as I have not even seen anyone just present in casino for no reason, they all have fun while they are there until they lose money. If the person do not use high amount and just use little amount, he will be good. But gambling addicts are the ones that use high amount, lose, play more, borrow money to play and lose again and again, yet looking for other means to get money to play and causing depression, there is nothing more than addiction in this other case, but not because someone love to be there but not risking money.

[madnessteat]

As long as the adrenaline is focus in gambling I don't think there will be a cure, the excitement of playing in a gambling venue online or offline create an adrenaline rush and this is something that makes the gambler alive, the professional can cure by giving the gambler an alternative to focusing the energy, it could be anything like playing basketball or painting there are many things to redirect the energy.

Agreed, it's the same with carnival rides that give you an adrenaline rush and make you want to try again, as well as games that make you feel the rush and make you want to try again and again in the hopes of winning. The feeling of winning in gambling is unlike any other that I can describe, and it is extremely addictive, unlike playing games or any physical games. It makes you feel extremely happy and amazed in ways that no words can express, but it will make the gambler addicted to it.

That is the problem. Many times problem gamblers know that what they are doing is wrong, that they should stop, that they are losing more than they can. But it's not a question of rationality, it's an emotional question. For someone who has had serious problems with gambling the only solution is to quit completely, in the same way that for an alcoholic the solution is not to drink another drop. Never. A single beer usually leads to the above pattern of self-destruction and for a problem gambler who has recovered, a single gamble usually triggers disaster.

I fully support your point of view. If a person is not able to restrain himself while gambling, spending more and more money from his budget, it is better to give up gambling completely and never return to it, because such behavior sooner or later will lead to serious problems.

[Obito]

~snip

Gambling is part of society even before our ancestors comes to live , meaning that this must be depend on how we treated and how we managed our activities.
saving funds for gambling as an extra amount is what we must do and not to spend more than that.

You might want to rephrase what you've just said, if it's before our ancestors then that means that gambling has existed even before humans that have a conscious and rational mind existed. I get your point though, gambling existed for a really long time. Also, I call BS on that saving funds for gambling, not everyone has to gamble or save money to gamble.

[michellee]

I fully support your point of view. If a person is not able to restrain himself while gambling, spending more and more money from his budget, it is better to give up gambling completely and never return to it, because such behavior sooner or later will lead to serious problems.

If he can do that, then that will be better for him. Otherwise, he will still play gambling games without stopping for a while or even quitting as soon as possible. That behaviour can lead us to have a bigger passion for playing gambling and winning more money, but the fact will not be the same as what we want. But spending more budget from what he can afford will not be recommended for him as he will not know if he can win or will lose more than he can expect. The cost of playing gambling will become bigger if he can not realize the potential of losing money.

[jrrsparkles]

~snip

Gambling is part of society even before our ancestors comes to live , meaning that this must be depend on how we treated and how we managed our activities.
saving funds for gambling as an extra amount is what we must do and not to spend more than that.

You might want to rephrase what you've just said, if it's before our ancestors then that means that gambling has existed even before humans that have a conscious and rational mind existed. I get your point though, gambling existed for a really long time. Also, I call BS on that saving funds for gambling, not everyone has to gamble or save money to gamble.

Gambling is just a choice, if someone wants to gamble and they can really afford for it then just go and gamble and get all the fun. Meanwhile its not for everyone and there is no need to allocate certain funds from our earnings only for the gambling purposes, we can allocate for entertainment and spend it on gambling and other things as well it depends on the budget.

[KTChampions]

That is the problem. Many times problem gamblers know that what they are doing is wrong, that they should stop, that they are losing more than they can. But it's not a question of rationality, it's an emotional question. For someone who has had serious problems with gambling the only solution is to quit completely, in the same way that for an alcoholic the solution is not to drink another drop. Never. A single beer usually leads to the above pattern of self-destruction and for a problem gambler who has recovered, a single gamble usually triggers disaster.

Indeed, this is a common pattern for alcohol and gambling addiction (and probably for any other addictions too) - if a person is emotionally unstable, then even starting with something harmless (one game for little money or one sip of beer), he may end up in a very bad situation. Therefore, the best solution in such conditions is to completely avoid what is dangerous for you.

[DU18]

Indeed, this is a common pattern for alcohol and gambling addiction (and probably for any other addictions too) - if a person is emotionally unstable, then even starting with something harmless (one game for little money or one sip of beer), he may end up in a very bad situation. Therefore, the best solution in such conditions is to completely avoid what is dangerous for you.

I agree with what you say, because it will be very difficult for us to let go of addiction if we have been trapped in it, and maybe it is not just alcohol or gambling addiction that is difficult for us to cure, even if we have a cigarette addiction it will certainly be difficult for us stop, so it's better if we avoid any bad actions that will indeed cause us to experience losses both in terms of finances and our personal health.
As the medical saying goes, prevention is better than cure

[Fredomago]

Gambling is just a choice, if someone wants to gamble and they can really afford for it then just go and gamble and get all the fun. Meanwhile its not for everyone and there is no need to allocate certain funds from our earnings only for the gambling purposes, we can allocate for entertainment and spend it on gambling and other things as well it depends on the budget.

You can do that, think it as part of your entertainment and set your budget to fill that desire. Same with your position. If you have money, then go, but if you are not willing to risk and you don't want to lose any amount, better not to.

This place is more on losing your money, and the chance of getting addicted is high, without a control you can lose huge amount.

Entertainment and nothing else, that still okay but exceeding to that, it will harm you for sure.

[worldofcoins]

Adrenaline is a survival hormone. 

When a person is attacked by a predator, the level of adrenaline in the blood rises sharply.  This allows you to engage in battle with a predator.  Another scenario is possible.  A person can simply run away from a predatory beast. 

Also, the adrenaline rush allows you to approach a beautiful girl and get to know her.  And then start a family and have children.  However, it works differently for gambling. 

If a player plays daily, then he has a daily adrenaline rush into the circulatory system.  This destroys the human body. 

Therefore, daily gambling is harmful.

What i have noticed from my past gambling is that the more money you state in gambling that you can't afford to lose then the adrenaline rush from it will be far more than normal gambling rounds and regularly getting that adrenaline rush is quite hard because you'll have to continue to bet the amount that you cannot afford to lose regularly and it will be quite a hassle in your life.

The life of someone who seeks such an adrenaline rush is doesn't always stays the same and soon many things start to become boring for them.

[Silberman]

Hi,

in this thread I would like to address a very important topic: Economic Costs of gambling.

From economic theory we know the concept of externalities:

In economics, an externality is a cost or benefit that is imposed on a third party who did not agree to incur that cost or benefit. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved.

Source: https://en.wikipedia.org/wiki/Externality



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?

You are only concentrating yourself on the aspects of gambling that are negative, the gambling industry provides employment to a lot of people around the world, it provides entertainment and peace of mind to those that just want to relax a little bit after a difficult day on their job, and during the pandemic it provided people with a way to spend their time during the lockdown while keeping themselves safe with online gambling, so while gambling can have some negative effects the positive effects that it brings are significant as well.

[AicecreaME]

Adrenaline is a survival hormone. 

When a person is attacked by a predator, the level of adrenaline in the blood rises sharply.  This allows you to engage in battle with a predator.  Another scenario is possible.  A person can simply run away from a predatory beast. 

Also, the adrenaline rush allows you to approach a beautiful girl and get to know her.  And then start a family and have children.  However, it works differently for gambling. 

If a player plays daily, then he has a daily adrenaline rush into the circulatory system.  This destroys the human body. 

Therefore, daily gambling is harmful.

What i have noticed from my past gambling is that the more money you state in gambling that you can't afford to lose then the adrenaline rush from it will be far more than normal gambling rounds and regularly getting that adrenaline rush is quite hard because you'll have to continue to bet the amount that you cannot afford to lose regularly and it will be quite a hassle in your life.

The life of someone who seeks such an adrenaline rush is doesn't always stays the same and soon many things start to become boring for them.

You can get an adrenaline rush whether you're in danger or happy, that's where your instinct tells your body what to do. The effect of adrenaline rush is not harmful at all, it will only become harmful if we are doing it in a wrong way, like constantly feeding your greed by your adrenaline rush, something like that.
Frustration is the one you'll feel if you always lose your funds in gambling, not adrenaline rush.

[jrrsparkles]

Gambling is just a choice, if someone wants to gamble and they can really afford for it then just go and gamble and get all the fun. Meanwhile its not for everyone and there is no need to allocate certain funds from our earnings only for the gambling purposes, we can allocate for entertainment and spend it on gambling and other things as well it depends on the budget.

You can do that, think it as part of your entertainment and set your budget to fill that desire. Same with your position. If you have money, then go, but if you are not willing to risk and you don't want to lose any amount, better not to.

This place is more on losing your money, and the chance of getting addicted is high, without a control you can lose huge amount.

Entertainment and nothing else, that still okay but exceeding to that, it will harm you for sure.

Almost everyone knows that risk associated with gambling and still they are choosing it means its their preference or choice as said.

When they are ready to take the risk then they also should face the consequences if the results went negative.

[worldofcoins]

Almost everyone knows that risk associated with gambling and still they are choosing it means its their preference or choice as said.

When they are ready to take the risk then they also should face the consequences if the results went negative.

It's true if someone decides to gamble and loses then it's on them that they made the decision of gambling and no one other than them can be blamed for it.
But when youngsters gamble without knowing the effects in long term then that really sucks, the majority will not know it till it has become a habitual gambling habit.