INTRODUCTION
The casino gambling industry holds a familiar presence in today’s
society, however the industry has not always been so commonplace. In
1978, Nevada and New Jersey were the only states with operating
casinos, and within a decade, casino operations expanded to 27 states
(United States). Legalized gambling has become so pervasive that Utah
and Hawaii remain as the only two states with no legalized form of
gambling (United States). During the early period of rapid expansion,
casinos experienced a 660% increase in revenues and a 201% increase in
GDP (Grinols and Mustard 28). The casinos’ obvious economic impact
remains a relevant topic today. As the casino gambling industry reaches
a status of commonality, society must recognize the industry’s effects
upon Americans.
The casino gambling industry also sparked less obvious, social changes.
Nearly a decade after the first legal casino opened, psychologists
introduced gambling disorders as a mental illness (American Psychiatric
Association). According to the American Psychiatric Association’s
Diagnostic and Statistical Manual, a problem gambler suffers from
persistent gambling thoughts, irritability when attempting to reduce
gambling, obsessive needs to win more money, and/or feelings of
gambling desires (American Psychiatric Association). The mental health
of Americans is an expanding topic in today’s society; therefore, society
must study these social facets.
Society needs to discuss and evaluate both the benefits and costs of an
industry that plays such a large role in the American community. With
increased data and technology, researchers may be able to discover new
correlational links between potential factors and casino gambling.
Studying these links may increase American knowledge of the social
and economic effects of casino gambling.
Benefit 1
BENEFITS
Casino counties experience more income than non-casino counties.
According to a regression analysis, researchers Dr. Karl Geisler and
Mark Nichols found a statistically significant link between casino
counties and increased income (Geisler and Nichols 105). The cross–
sectional design of the study analyzes county data on real per capita
income and unemployment rates for various Southern and Midwestern
states between the years of 1984 and 2009 (Geisler and Nichols 106).
The broad sample collection period includes both the years before and
after the establishment of casinos, ensuring adequate trend analysis
(Geisler and Nichols 106). Geisler and Nichols used the GDP deflator to
express all income amounts in terms of 2007 dollars in order to control
extraneous factors such as inflation (Geisler and Nichols 106).
The research found that, on average, casino counties experienced an
income increase by more than 10% in comparison to non-casino
counties (Geisler and Nichols 107). Furthermore, casino counties
experienced a “real per capita income increase in the range of $680–
$920” (Geisler and Nichols 108). The statistical data suggests that the
mere presence of a casino may directly contribute to the income growth
of the casino’s hosting county (Geisler and Nichols 107). The extra
income benefits casino county citizens with more opportune
expenditures, ranging from desired leisure activities to necessary rent
payments. The link between increased income and casino establishment
ultimately implies a monetary freedom.
Benefit 2
In addition to the individual benefits of income growth, casinos also
provide tax revenues to society. Casino gambling tax revenues benefit
local community projects. According to the 2014 Pennsylvanian
Commonwealth revenue report, tax revenues have accumulated to over
$9 billion since the opening of Pennsylvania’s first casino (“Gaming
Benefits”). More specifically,
Pennsylvania’s casino slot machine revenues fund tax reductions for
local school properties and wages (“Gaming Benefits”). Pennsylvania is
not the only state experiencing local benefits. According to the Missouri
Gaming Association, Missouri casinos have funded nearly $6 billion to
local education programs and an additional $800 million to worthy local
non–profits since the state’s first casino opening (Missouri Gaming
Association). The data suggests that local communities experience
significant project funds from the industry’s casino tax revenues
(Missouri Gaming Association).
Iowa presents a further noteworthy example of local community project
funding from casino tax revenues. Iowa has experienced such abundant
casino tax revenues that the state founded a program to distribute its
revenues directly to local communities (Iowa Gaming Association).
Since 2004, the state’s County Endowment Fund Program has
distributed $71 million in donations to charitable projects and non-profit
organizations dedicated to protecting the environment, offering
educational resources, ensuring healthcare, and enhancing culture (Iowa
Gaming Association). The direct influence of casino tax revenues
suggests significant impacts on a multitude of local communities in
various states. The tax revenues provide local communities with funds
