Economic and Social Impact of Introducing Casino Gambling

Social Impact

The technological advancements in the fast-moving world have given birth to a new set of the population that considers gambling in casinos as a recreational activity. Although the introduction of casino gambling has created a confirmable rise in a country’s economy, its impacts on society are still a topic of discussion. Let’s see how casino gambling has impacted the social and economic aspect of a country.

Impact on the Economy

Impact on the Economy

Employment wages, tax, government bodies and many more factors fall under the umbrella of a counties economy. In 2013, Witt Brooke and Buckley rightly designated that the economic impacts can be divided into three main sectors

  • Direct effect: Where only the immediate industries and their wages are affected.
  • Indirect effect: This can be related to other sectors as well
  • Induced effect: Relates to the changes made in household income.

Under all the three concerns, the introduction of casinos for gambling has been nothing but a boon to the economic growth of a country.

  • It is a form of entertainment and a source of amusement for the locals, which obviously increase the revenue of the industry.
  • The increasing demand for casinos all over the world has created better employment opportunities.
  • A study conducted by the AGA in 2006 indicates that 67% of the population agreed that gambling was a pleasant way to generate revenue, without having to impose on raising taxes. The study also mentioned that around 67% of the casinos worldwide are an aid in the economic growth of other industries.
  • Another study conducted on the economy of the US casinos in 2005, indicated that the industry generates revenue of $22.6 billion and has created potential job opportunities for around 600,000 people.

Social Impacts

Unlike the economic impacts that have shown clear signs of positivity to the growth of the gambling industry, its impact on society is not all that pleasant. The reason behind this could be unattended debts, divorce, suicides and many other factors, which causes distress, especially in gambling addicts.


  • A crime based study conducted in the USA between 1977 and 1996 reported a sharp rise in the crime rate (8%) after the legalization of casinos, compared to other countries that did not indulge in the gambling business.
  • Recently, there has been a study that sees a correlation between drunk driving (leading to accidents) and casino gambling. A drink or two is inevitable in places like casinos. This causes irresponsible driving leading to accidents
  • However, a study conducted by McGowan in 2013, indicates that the rate of brutal accidents due to drunk driving is higher in rural areas than when compared to the urban ones.
  • Apart from the negative impacts, there is also upside to society. It is a form of recreation and a time killer for a few. Like mentioned above, casinos provide job prospects that can increase the total well-being of their citizens and attract many more tourists. This could also raise the standard of living.


Casino gambling has both upsides and downsides to it, in terms of economy and social structure. However, responsible gambling can lead to a healthier and more sophisticated form of recreation whilst contributing to the country’s economic and social growth.