Casino gambling has become an increasingly popular strategy for economic development in the United States over the past few decades. The report “Casino Gambling as an Economic Development Strategy” analyzes the economic effects of casinos in different U.S. regions, particularly in economically struggling areas. The study uses quasi-experimental methods to assess how casinos impact local economies, showing both positive and negative consequences.
Boosting local economies
The study finds that many economically disadvantaged regions are attracted to the potential of casinos for stimulating growth. Results indicate that areas with casinos experienced faster economic growth compared to similar regions without them. The service sector, in particular, has seen significant growth due to casino-related jobs and increased tourism revenue.
Mixed social effects
While casinos can drive economic growth, they also raise social concerns. In some areas, like Atlantic City, crime rates increased after casinos were established. However, the picture is not uniform, as many places did not experience a significant rise in crime. The study suggests that increased crime may be tied to higher tourist volumes rather than the casinos themselves.
Local workforce and economic leakage
A challenge identified is that many casino-related jobs go to individuals from outside the region, leading to income loss from the local economy. This phenomenon, known as economic leakage, can limit the positive impact on local economies.
Policy implications and future research
For communities considering casinos as a development strategy, it is crucial to weigh benefits against risks. To maximize local benefits, investments in education and infrastructure that support both visitors and residents are recommended. The study highlights the need for more research on long-term effects and how different types of casinos may influence various regions.
Source: “Casino Gambling as an Economic Development Strategy” by Terance J. Rephann and colleagues. For more details, see the full report.