Economic & Social Impacts of Gaming Entertainment
- ms3304dealer
- Nov 29, 2017
- 5 min read
[Source: http://www.abstruse.net/]
Gaming entertainment is playing a more and more important role in the hospitality industry. For instance, many cities, such as Las Vegas and Macau have paid a lot effort in developing the gaming entertainment in order to boost the cities’ economy and tourism. However, is it a right choice to continue developing this industry? What are the benefits and costs of doing so? So, we are going to analyse this thriving industry from both the economic and social aspects.
Economic Impacts
Positive Impacts
1. Boosting the economic development
Gaming entertainment can act as a tool to attract tourists internationally and to boost the development of tourism industry, which will eventually lead to a larger economic growth in the city as a whole. According to the statistics computed by the American Gaming Association, the gaming industry has benefited the US economy in various aspects, including the growth in GDP and government tax revenues.
[Source: http://www.gamingzion.com/gamblingnews/american-gaming-association-washes-hands-of-online-gaming-legalization-5133]
In 2013, it has generated revenues of $81 billion and has paid $38 billion to the government as taxes. The direct economic impact (casino’s spending) was around $102 billion; along with the multiplier effect, the employees in the industry have also gained higher salaries; the total economic impact (including employees’ spending) has reached $240 billion, which was even higher than the airline industry. This reflects that the gaming industry is becoming more important in the hospitality industry and benefited the economy. With these large amounts of revenues, government and companies may spend and invest more in developing better infrastructures and facilities to boost tourism as well we the economic development.
[Source: https://www.americangaming.org/sites/default/files/research_files/aga_sos2013_rev042014.pdf]
[Source: https://steemit.com/cryptocurrency/@xmachina/dmarket-ico-the-new-player-in-cryptoland]
2. Creating more job vacancies
Gaming entertainment can create more job opportunities and increase the workers’ salaries in the gaming industry as well as the hospitality industry. From a study conducted by two economists in 2002, they found out that 4 years after a casino opened, the employment has increased by 26% and on average, the gaming operations have created more available job vacancies in the market by 5%. Moreover, from another research about Macau gaming industry, incomes of employees involving in the gaming and hospitality industry have greatly increased by 63.28% within 8 years. These all indicate that the thrive of gaming entertainment has significant impacts on individual household’s incomes and the job opportunities in the economy, which can benefit the citizens by improving their standards of living.
[Source: http://royaldealerschool.com/]
[Source: http://www.dsec.gov.mo/File/UStatContong]
Negative Impacts
1. Inflation
Gaming entertainment boosts the economic development but also creates inflation in the economy, which may potentially affect tourists’ willingness to stay or visit the city. From a case study of Macau gaming entertainment, it shows that the inflation rate has reached 7.48% in 2008, which means the same amount of money can buy fewer amount of the same goods when comparing with previous years. Although local citizens’ incomes increase at a higher rate than inflation, tourists do not. They may be discouraged by the high consumption index and prices in the city and eventually chose another destination for their vacations. This may potentially hinder the development of the hospitality industry.
[Source: http://www.dsec.gov.mo/File/UStatContong]
Social Impacts
Positive Impacts
1. Entertainment
Nowadays, the gaming entertainment industry not focuses mainly on gambling, but also various activities related to gaming entertainment, such as food and beverage, live performances, theme parks, etc. The scope of guests then expanded from solely gamblers to all the others, providing more sources of entertainment for both residents and tourists. For example, Macau are offering more mixed entertainment resorts outside of casino. New properties opening on the Cotai Strip, including Parisian Macao or Wynn Palace are offering different options that appeal to a wider demographics.
[Source: https://www.indianz.com/IndianGaming/2016/09/12/chickasaw-nation-expands-megac.asp]
Negative Impacts
1. Increasing Suicide Rate
Although not all people involved in gambling will be addicted, the possibility does exist. Gambling addiction will hamper personal well-being, social life and family relationship, which end up being isolated from the community and commit suicide. Let’s take Las Vegas, the major player in the casino market, as an example. It has been deemed the “suicide capital of America”. Residents of the city are 50% more risky of suicide than people living in any other city in U.S. Although it is hard to identify a single explanation for the terrifying suicide rate, gambling does likely play a role. Refer to Nevada Council on Problem Gambling, 17% of people with gambling disorders have attempted suicide, and about half of them have thought about suicide, comparing with 5%of the general population. The data shows the positive relationship between gambling and suicide rate.
[Source: https://www.healthyplace.com/addictions/gambling-addiction/gambling-addiction-articles/]
2. Crime
In order to finance playing, gamblers have a higher possibility to commit crimes or illegal activities, such as theft, embezzlement and misappropriation. According to a research done by The Australian Productivity Commission, about 1 in 10 problem gamblers had committed a crime due to gambling, and up to two thirds of gamblers in counselling had done so, revealing the high crime rate among gamblers. Crimes may also occur because of the irrationality of gamblers. In Hong Kong, it was once reported that a heavily indebted gambler even killed his mother-in-law after she refused to lead him money.
[Source: https://dangerousglobe.com/news/politics/a-nice-business-to-do-people-with-the-atlantic-bridge/]
Learning Reflection
It is actually my first time to learn of the gaming industry. Although there is a Jockey Club in Hong Kong for legal gambling, I personally think that most of the Hong Kong citizens still do not accept gambling or even refuse such activities because of their perceptions and the negative impacts that it may cause. However, there are indeed some benefits of developing gaming entertainment in an economy. So, I think we should be more open-minded to accept this thriving industry and to learn from other cities for their successful strategies in the development. As the tourism industry in Hong Kong is not performing so well and are getting worse in the recent years, this may be a good choice to open a casino hotel to attract more visitors globally so as to boost the tourism and economy. Of course, the fundamental element for successful development would be the support from citizens and government along with the proper rules and regulations.
Reference
[1] Sam Ro (2013). CHART: The Extraordinary Rise Of Native American Casinos. Retrieved from http://www.businessinsider.com/the-rise-of-the-native-american-casino-2013-3
[2] Jane Wells (2014). Jackpot! Gambling's impact on the US economy. Retrieved from https://www.cnbc.com/2014/09/30/casinos-and-gambling-business-jackpot-gamings-impact-on-the-us-economy.html
[3] American Gaming Association (2013). State of the States – The Aga Survey of Casino Entertainment. Retrieved from https://www.americangaming.org/sites/default/files/research_files/aga_sos2013_rev042014.pdf
[4] Robert J. Williams, Jürgen Rehm, Rhys M.G. Stevens (3 November, 2011).THE SOCIAL AND ECONOMIC IMPACTS OF GAMBLING. Retrieved from: https://www.uleth.ca/dspace/bitstream/handle/10133/1286/SEIG_FINAL_REPORT_2011.pdf
[5] William N. Evans, Julie H. Topoleski (2002). The Social and Economic Impact of Native American Casinos. Retrieved from: http://www.nber.org/papers/w9198
[6] Dylan Matthews (2012). Studies: Casinos bring jobs, but also crime, bankruptcy, and even suicide. Retrieved from: https://www.washingtonpost.com/news/wonk/wp/2012/10/30/studies-casinos-bring-jobs-but-also-crime-bankruptcy-and-even-suicide/?utm_term=.c50ddc89c3a9
[7] Elaine Fong I M., Ken Lou T. M., Moses Ho K. I., Raynis Chou I. H., Raymond Fok H. M. (2009). “Develop Macau as a Sustainable Tourism Destination interms of Hotel industry”. Retrieved from: http://www.dsec.gov.mo/File/UStatContong
[8] Ayra Moore (2017). Gambling Addition and Its Negative Impact on a Family. Our Everyday Life. Retrieved from https://oureverydaylife.com/gambling-addiction-its-negative-impact-family-40466.html
[9] Chris Lau (2016). Hong Kong gambler who owned HK$18M found guilty of killing mother-in-law after she refused to lend him money. SCMP. Retrieved from http://www.scmp.com/news/hong-kong/law-crime/article/1901715/hong-kong-gambler-who-owed-hk18-million-found-guilty
[11] Harry Croft (2016). Phrases of a Gambling Addition. Healthy Place. Retrieved from https://www.healthyplace.com/addictions/gambling-addiction/phases-of-a-gambling-addiction/
[12] Sexta-feira (2017). Increase in Macau tourism boosts gaming sector. Games Magazine. Retrieved from
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