The need to makemoney without hard labor is something most people get interested in.Today most people through the help of gambling have been able to sortout major bills in their life and at the same time some people haveruined their lives with just a single bet. The question today is’’how does gambling affect the economy?’’ Gambling involves playing an array of games taking risky options thatcould be favorable or unfavorable depending on the outcome of thegame. When its favorable people call it a jackpot, a feeling everygambler loves to experience. What we can term a reward for passion.
The economy of acountry could get better when players win or lose but the effect ofmultiple players losing a bet over time can be very detrimental andcan also be a threat to a country development.
When people getaddicted to gambling it can be pathological thus they are referred toas pathological gamblers. A good number of these pathologicalgamblers are very successful while another fraction is at the vergeof bankruptcy.
The effect ofgambling on economy cannot be over emphasized as it can affect theeconomy in tons of ways either positively or negatively which wouldbe reviewed.
However, causality between financial losses and gambling is not always simple. Factors like ill-health may effect both gambling and poverty, and poverty may lead to problematic gambling and vice versa. However, it is clear, that gambling can intensify poverty. Gambling-related debt develops when borrowed money is spent on gambling.
Somebenefits of Gambling in the Economy
- Employment
- Tax revenue
- Economic growth
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- Some negative benefits of gambling in the economy. Increased crime rate Bankruptcy poverty and unemployment Health problems Increased crime rate. Gambling can lead to increased crime rate when stake becomes highly unfavorable, leading to excessive loss.
- Finding money to gamble is usually the most immediate and obvious issue which brings with it enough problems, but in addition an all consuming compulsion to gamble at any cost leads to difficulties which affect employment, quality of life, family relationships and mental and physical health.
Employment
Gambling enterprises can lead to employment of a good amount ofindividuals, with the increasing amount of different betting agenciesthese individuals can work in various capacities as an agent,marketer and store keeper. As the time progresses they could becomeowners of a gambling center and later the brand ambassador.
For some gambling centers that have need for entertainers someindividuals are employed to entertain gamers and VIP gamers.
In some gaming centers there is need for menial workers such as thecleaners, security, croupiers etc.
Just as the physical gaming market is growing the online gamingmarket grows as well and there is room for more employment to work asa developer, coder, manufacturer, tech analyst, graphic designer etc.the job openings is endless.
A good gambling enterprise is made up of both the physical gaming andvirtual gaming paving way for countless employment opportunities thuseliminating poverty.
Individuals are engaged because some of these gambling enterpriseshave hotels where most of their foreign players lodge creating morespace for employment even outside the gaming sphere.
Tax revenue
The government smiles especially when an enterprise pays tax with thecurrent increasing number in gaming networking the government hasdimmed it fit to tax local and foreign game enterprises as a way ofgenerating funds or revenue.
The two gaming revenues are Gross gaming revenue and Net gamingrevenue. Over the years it has been calculated that taxes generatedfrom gaming revenue has been used to fund major Government projectswhile in some countries gambling is considered illegal such as Brazilwhere it’s almost restricted.
Also gambling revenue can be generated online by online gaming orgambling market. To function properly in a state or country it isvery advisable to register your business with the specific governmentauthorities.
It’s believed that countries like china who sprang up in a shorttime has made excessive billions of dollars Macau China made a grossrevenue of about 27 billion USD in 2016 from all kinds of gamblingincluding virtual gaming. China has one of the highest gross gamingrevenue in the world.
The United States specifically Nevada and New Jersey has generatedgross revenue of about 71.1 billion USD annually.
This revenue has been used judiciously by these nations indevelopment and restructuring some of these gaming centers whichattracts tourists from all over the world this has added to therevenue as hospitality, transportation, and other basic needs wherepaid for.
It also brings to a point where foreign currencies are exchangedinterchangeably this serve as a boost to the nation economy.
Economic Growth
With the increase in employment and tax revenue it can lead to a morestable economy where other government projects can be actualized.Putting in check economic threats such as inflation and recession.
How Does Gambling Lead To Poverty Affects
Gambling been classified as a form of entrepreneurship can lead toeconomic growth by increasing the labor inputs either by hours workedor workers employed, it can also lead to technological advancementespecially in virtual gaming where mainly developers and programmersare needed basically.
Gambling has increased various countries gross domestic product (GDP)countries like United States of America, Republic of China, England,Mexico, and Uruguay etc.
A nation grows not just in size but also monetarily by giving foreigninvestors a chance to build gaming centers such as casinos, lotterycenters etc. these gaming centers do not only generate revenue butthey also bring tourist from far and across as time has shown tourismalso can build up a nation’s economy.
Some negative benefits ofgambling in the economy
- Increased crime rate
- Bankruptcy poverty and unemployment
- Health problems
Increased crime rate
Gambling can lead to increased crime rate when stake becomes highlyunfavorable, leading to excessive loss. Individuals who has become soaddicted to gambling may have to steal to make sure they gamble, somemay go ahead to murder. Cases of murder have been reported in variouscountries as a result of gambling. Some individuals even go as far astaking their own life; gambling suicide is the most common cause ofdeath in Europe.
Gamers after using family life savings to bet in the process losingit sink into depression from which they consider suicide because ofthe stigma and the fear of facing their family members.
While some partake in cybercrime creating clone website whereignorant users log in sensitive information’s such as bankpasswords, bank verification numbers etc. these users get scammed oftheir money, some of these users still end up committing suicide. Thecircle of crime continues which sometimes lead to money launderingand extreme racketeering.
Bankruptcy poverty andunemployment
The trio of bitter existence, when gamblers are very addicted theyfail to calculate. They incur lots of debt in the quest of coming outof the debt they are submerged. For some the debt is so much they aresacked from work while for others they sign all form of documentswhich may involve their houses and business as standing collateral.They fail to realize the length they have gone until when they cannotplay any longer.
Poverty is inescapable, they become unemployed and bankrupt whichcould trigger some to a crime filled life while others are lead tosuicide.
They distort the economy with high level or amount of criminalactivities sometimes leading to financial breach in a countryexpected gross domestic product (GDP), here unemployment can alsoaffect economic growth as some families becomes poorer due to a rapiddrop in labor input and labor employed.
In some countries diversion of companies’ funds to gamble have beenrecorded which has been one of the primary causes of unemployment inAsia and Europe. Due to Africa poor exchange rate with othercontinents gambling is not seen as a major threat to the economy butseveral cases has been reported by top firms in the continent.
Any individual with such criminal case may find it difficult to getemployed in future because they are regarded untrustworthy and mayrequire strict supervision which is too much inconvenience to acompany the chances of getting employed remains herculean.
Health Problems
Gambling can lead to many health challenges to mention a few losingbet more frequently can lead to mood disorders it can also lead tothe over consumption of alcohol and drugs which leads to anxietydisorders and depression. One of the most leading causes of death inEurope and Africa is mental illness.
Just as the physical health is very important the mental health isimportant too most gamblers are not conscious of their mental statebefore and after a stake some gamers are hypertensive with interlacedhealth problems in their family history because some die of stroke orbetter put heart attack. Mood disorder which is also known as moodswing leads to acute depression this can affect the economy byshutting spaces in mental facilities making the population vulnerableas the greater half of them is prone to mental breakdown this totallycut down the work force or labor force which could lead to acountries poverty and a drastic drop in her gross domestic product(GDP).
Health problems limits an individual as they become totally dependenton the country so invariably they diminish the countries economicalprogression, reasons because most of these family are alreadybankrupt they cannot pay their medical bills leaving the Governmentwith more loss as most of its resources would be used for care andmanagement both in the hospitals (physical and mental) or atpsychological centers this also bring down the economy.
As the saying goes ‘’health is wealth’’ it’sonly the healthy that can make an economy stable and a nationwealthier when the ratio of sick to healthy individuals is notproportionate it can crumble any nation’s economy which could leadto poverty.
A sick man with no house to stay is very difficult to manage oftentimes they don’t come for their treatments even when the bills arealready paid by the government which can also lead to loss in theeconomy some of these individuals would prefer to buy cheap alcoholor take drugs they get in the streets and they totally neglect thefacility this again may increase mortality rate in the economy.
Most gamblers lose. So why do people bet their hard-earned money? Find out a bit about the psychology of gambling, why people bet money and the reasons for gambling.
Psychology of Gambling: Reasons for Gambling
Ok, so we all understand that gambling offers you the chance of winning money or prizes, but have you considered some of the other reasons for gambling? A look into the psychology of gambling offers insight into that question.
Why Do People Gamble? - Risk Taking
One of the reasons for gambling is that it's human nature to feel excited when taking risks and the positive feeling gained from gambling is no different. 'Will my numbers come up?' 'Will my team win?' The sense of anticipation creates a natural high, an adrenalin rush, a feeling that very many of us seek when looking for fun and entertainment. A feeling that some people believe they cannot live without.
Why Do People Gamble? - Escapism
The gambling environment can provide an escape from everyday life. Whether it be the glitzy casino environment, a loud and exciting amusement arcade or even an online betting company, for the time that we are taking part we can be surrounded by different people, different sounds and emotions, all of which stimulate and arouse our senses.
Why Do People Gamble? - Glamorous
The media and advertising agencies understand the psychology of gambling and often portray a stylish, sexy, fashionable image of gambling. In film and TV, we see characters enjoying a night at the casino or an afternoon at the races. There is often a suggestion of 'high society' and attending at 'a place to be seen'.
Why Do People Gamble? - Social
Gambling is accepted as part of this country's culture and as such is widely participated in (with varying frequency) by the majority of the population. Some young people are introduced to gambling by learning to play card games with their parents at home, maybe we go the bingo with friends on a Friday night or meet after school at the amusement arcade.
Psychology of Gambling: The Common Misperception
The above reasons for gambling all tie into this: most people think about gambling as a low-risk, high-yield proposition. In reality, it's the opposite: a high-risk, low-yield situation. The odds always favor the house. Despite that, the thought and excitement of hitting a casino jackpot are often too alluring - regardless of its probability.
Learn more about Types of Gamblers and Signs of Gambling Addiction.
Sources:
- Illinois Institute for Addiction Recovery
next: What Type of Gambling is the Most Addictive and Why?
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How Does Gambling Lead To Poverty Increase
APA Reference
Gluck, S. (2008, December 29). Psychology of Gambling: Why Do People Gamble?, HealthyPlace. Retrieved on 2020, December 14 from https://www.healthyplace.com/addictions/gambling-addiction/psychology-of-gambling-reasons-for-gambling