Economic Costs of Gambling

[Rruchi man]

Why is it that the negatives were only stated? Gambling is a big contributor a country's economy, think about Las Vegas, Macau and other countries that have been opened and known to be the gambling capitals. It is one of the main reasons why they've opened it because it generates money that's helping the economy of their country and local which had brought jobs and taxes. As a gambler, those things are very common and we know that negative effects will occur if we're not careful and if we cannot control ourselves as we gamble.

People often attach negative sentiments when the word gambling is mentioned, because gambling can become addictive, it is what is most feared and is what is considered bad.

As much as gambling is feared, there are also some positive economical benefits to it just as you mentioned,  and some states do not consider it to be illegal because apart from the tax revenue benefit to the state and the creation of jobs for individuals, it also boost local retail sales as some of these casinos have lounges and restaurants as well as rooms that tourist or visitors can patronise.

So if visitors decide to sideline external outlets like the restaurant, hotels and lounges that are in the city to visit a casino, they still spend the equivalent amount in patronising in house facilities like these restaurants, lounges and rooms that these casino's have thus, local retail sales is sustained.

[pinggoki]

Gambling is indeed a business type with high externalities per economics, but the reason gambling dens and pubs get away with this is because of money. They bribe authorities, sometimes the government allows them to operate within their borders so long as they pay tithings, these taxes are supposed to counteract the externalities the gambling den will incur during its operation, yet of course only a small percentage of the tax ever goes to where it's supposed to courtesy of good ol' corruption. These for me are the biggest reasons why even though allowing a gambling den to operate is detrimental to the society, it is still allowed to operate anyway.

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.

Most casinos are obliged to pay their portions to the government in the form of taxes, those who do not either operate behind the government's radar or had simply paid enough mouths to shut up during meetings. Either way we must agree that these types of business-models shouldn't be allowed because not only is it damaging enough to have a gambling house operate at its leisure within your country, but the fact that they don't pay as much locals would.

[Oshosondy]

Compared  to total number of gambler, addicts are a very small fraction.

I do not think so, according to a report I have read before, out of twenty people, five people are likely to be addicted, you do not just know them because gambling addicts do not want to tell anyone that they are addicts. Out of 100% of the people that are gambling, do not be surprise to see 20% among them to be an addict. Though more of gamblers are not addicts, I mean 80% percent are not likely to be addicted, but that 20% is still a very high number if related to the risk gambling can pose.

[KTChampions]

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.

I found an interesting article on the capitalization of online casinos (I think only legal ones are taken into account) https://companiesmarketcap.com/gambling/largest-gambling-companies-by-market-cap/


The total capitalization is a quarter of a trillion dollars, not so much when compared with the capitalization of Google or Amazon. Interestingly enough, the overwhelming majority of companies are from the United States.

[carlisle1]

Compared  to total number of gambler, addicts are a very small fraction.

I do not think so, according to a report I have read before, out of twenty people, five people are likely to be addicted, you do not just know them because gambling addicts do not want to tell anyone that they are addicts. Out of 100% of the people that are gambling, do not be surprise to see 20% among them to be an addict. Though more of gamblers are not addicts, I mean 80% percent are not likely to be addicted, but that 20% is still a very high number if related to the risk gambling can pose.

20% of those actual gamblers, that's seriously high and if they continue and not doing anything to solve this addictions.

Imagine how huge the problem each families will need to face, losing a lots of money that supposedly for other important purposes,
but due to addiction gambler who have this problem will risk it without any thoughts.

They are no longer in their right minds that's why they can do this kind of stuff which is unhealthy.

[Saint-loup]

Compared  to total number of gambler, addicts are a very small fraction.

I do not think so, according to a report I have read before, out of twenty people, five people are likely to be addicted, you do not just know them because gambling addicts do not want to tell anyone that they are addicts. Out of 100% of the people that are gambling, do not be surprise to see 20% among them to be an addict. Though more of gamblers are not addicts, I mean 80% percent are not likely to be addicted, but that 20% is still a very high number if related to the risk gambling can pose.

No you are wrong Oshosondy. If 5 people are addicted among 20 people, it means the overall percentage rate is above 20%. It corresponds to 5x5=25% of the population. One quarter of the gamblers then. Those figures are very high and I don't think they match reality because I've never heard that one quarter of traders would be addict while it's almost the same activity at the end.

[molsewid]

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.

I think it is better to say that people who've been so attached in gambling see themselves that they were doing gambling more than they expect but they can't refuse to say no to their hobby and still get into gambling. I mean as a gambler it takes a lot of courage when you decide to quit gambling or even let say when you decide to limit yourself from gambling because it is not easy for them. I've got to know one of the economic cost of gambling here in our country, especially at this time of pandemic our government allotted a cash assistance for every affected families of pandemic but there are some people who used their money assistance from the government to gambling and it is totally unacceptable.

[Raflesia]

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.

I think it is better to say that people who've been so attached in gambling see themselves that they were doing gambling more than they expect but they can't refuse to say no to their hobby and still get into gambling. I mean as a gambler it takes a lot of courage when you decide to quite gambling or even let say when you decide to limit yourself from gambling because it is not easy for them. I've got to know one of the economic cost of gambling here in our country, especially at this time of pandemic our government allotted a cash assistance for every affected families of pandemic but there are some people who used their money assistance from the government to gambling and it is totally unacceptable.

Gamblers do have to dare to take steps even though this will be a big risk too, but as a hobby you must know how to limit yourself from your finances, don't just rely on economic costs, this will be very complicated if you are involved, in a situation like this there is very little help from the government but don't use it in gambling it will lead to big mistakes and can't recover if you lose, if someone does something like this then I think he doesn't think long ahead.

[Yamifoud]

Compared  to total number of gambler, addicts are a very small fraction.

I do not think so, according to a report I have read before, out of twenty people, five people are likely to be addicted, you do not just know them because gambling addicts do not want to tell anyone that they are addicts. Out of 100% of the people that are gambling, do not be surprise to see 20% among them to be an addict. Though more of gamblers are not addicts, I mean 80% percent are not likely to be addicted, but that 20% is still a very high number if related to the risk gambling can pose.

No you are wrong Oshosondy. If 5 people are addicted among 20 people, it means the overall percentage rate is above 20%. It corresponds to 5x5=25% of the population. One quarter of the gamblers then. Those figures are very high and I don't think they match reality because I've never heard that one quarter of traders would be addict while it's almost the same activity at the end.

If that percent is real, there's no reason for the government not to ban gambling, that's an automatic ban because it only says that gambling does make the life of the people harder, and although the government makes revenue from taxes, they have to increase their budget to rehabilitation and most probably crime rates will increase, which is not a win-win situation for them.

[Kittygalore]

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.

Casinos pay big taxes I think, any gambling establishment has a higher tax rate compared to a normal business establishment. Also, it's not the clients responsibility to pay taxes, they are clients and it should be automatically deducted and if in terms of wins, I think it only applies to lotteries. Offshore accounts are easy to trace, you just need to have a dedicated team to hunt them and countries that offer them are getting fewer each year.

[stadus]

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? 

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.

[LUCKMCFLY]

Compared  to total number of gambler, addicts are a very small fraction.

I do not think so, according to a report I have read before, out of twenty people, five people are likely to be addicted, you do not just know them because gambling addicts do not want to tell anyone that they are addicts. Out of 100% of the people that are gambling, do not be surprise to see 20% among them to be an addict. Though more of gamblers are not addicts, I mean 80% percent are not likely to be addicted, but that 20% is still a very high number if related to the risk gambling can pose.

I think there are two types of gaming addictions:

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.

These types of people are usually divided into many branches, but they start from those first two premises. I have a friend who is a psychologist, and he tells me that everything starts from there.

[traderethereum]

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.

Casinos pay big taxes I think, any gambling establishment has a higher tax rate compared to a normal business establishment. Also, it's not the clients responsibility to pay taxes, they are clients and it should be automatically deducted and if in terms of wins, I think it only applies to lotteries. Offshore accounts are easy to trace, you just need to have a dedicated team to hunt them and countries that offer them are getting fewer each year.

I guess so. The client or the members is just a visitor on the business, and if they should pay the tax, maybe that is not the tax like the gambling business paid.
But if the clients won some money, they need to pay taxes that will deduct from what they win.
However, suppose the government wants to hunt the business owner with money in the offshore accounts. It is not easy as it will need cooperation with the other that the situation and conditions in the related country.
We do not know how online gambling games pay taxes because many online gambling games operate out of their country.

[Shamm]

  People who addicted in Gambling are easy to them to find a way to go on site, and money .Some addicted they can think about their day is incomplete without the gambling cause they accustomed and they just routine the gambling. Some gambler will get a mental ill because they are uncomfortable if they can not go gambling.

[Victorycoin]

After becoming addicted to gambling it becomes very much upset with not only the economic cost but also the emotional losing everything creates an uncomfortable environment a kind of negative reaction begins gambling is when a person's thoughts actions behaviors etc. are silently consumed when despite repeated attempts the action cannot be stopped, and gradually all economic family or social relationships begin to deteriorate it will be worn in mental illness too much tax is bad for the economy.

[Kong Hey Pakboy]

~~~

I wish people who play gambling can realize that when they lose their money, they do not blame the casino but instead think of what they already did. It needs the courage to accept the fact because it can help us move on and have a chance to be better than before. If you can learn from your mistake, you will grow and become wiser than before to know what you will do when you play gambling.

Not courage, just a plain old dose of reality is enough to accept that you did all of it, and that it's nobody's fault but you. It's not courage, it's just being responsible to your actions that's going to make a difference.

[worldofcoins]

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.

Yes, but unlike smartphone addiction in gambling there's also an adrenaline rush where the outcome is unpredictable and money is on the line.
So there's a huge percent chance that many people will get addicted to it, if not for profit then for that adrenaline rush it provides, And I think most of the earlier casinos started for that.

[KTChampions]

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.

[Smartprofit]

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.

Yes, but unlike smartphone addiction in gambling there's also an adrenaline rush where the outcome is unpredictable and money is on the line.
So there's a huge percent chance that many people will get addicted to it, if not for profit then for that adrenaline rush it provides, And I think most of the earlier casinos started for that.

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.

[Sanitough]

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.