Assignment 1: Socioeconomic Impact of Casino Gambling
Casino gambling is one of the famous rotary gaming sports of chance whose history dates back to 4000 years ago (Narayanan & Manchanda 34). The game can take many forms such as table gaming, machine gaming, riverboat gaming, state-controlled gaming, and charitable gaming among others. The United States is the leading country in casino gaming. Most states have legalized gaming, which has ever since been valued for its socio-economic impact. Minnesota is among the largest gaming centers in the United States of America. It happened to be among the pioneer US states who legalized casino gambling after Nevada and New Jersey. It happened in 1992 with the Act of state’s parliament which was unanimously backed by the overwhelming referendum (Seifert & Wulfert 123). Minnesota has a total of 13 tribal casinos featuring the 19th position countrywide in terms of disposable income. Instigated mainly as a means to stimulate economic growth, Minnesota’s gambling attracts mostly older and affluent cohorts. Recently the game has also become a lucrative tourist venture attracting people from other states and nations. Since its inception, the game has been credited for aiding the redistribution of wealth from wealthier urban to poorer rural areas. Since the legalization of gaming, people have benefited from job creation and boosted incomes. The state economy has also benefited since gaming contributes heavily to the revenue through the taxes imposed on the casino operators.
Positive Effects of Casino Gambling
The introduction of casino gambling in the Minnesota state has had several positive effects for the casino operators, the players, or gamblers, and the state in general. First, gaming generates income for the operators who concomitantly run other economic affairs through the proceeds from gambling (Hing et al. 370). Thus, they have also created employment opportunities to a wide range of people who would otherwise be jobless. Since gaming is usually featured on television, especially poker tournaments, the casinos, and card rooms get free publicity. This approach also augments their businesses, as it attracts people from far places.
On the other hand, gaming brings people from all walks of life to gain experience with each other. Other than merely contending in the game, these people usually become of help to each other in many ways, including sharing business ideas. As a result, many people have changed their lives positively through this kind of venture. The most important effect is the plethora of prizes and millions of dollars that players win. Some have given testimonies about how they have changed their lives through the winning of prizes from casino gambling. This is what attracts many potential players, including family people.
Finally, the state of Minnesota has had several positive effects from the legalization of the game. Gaming has boosted the revenue of the state tremendously through the taxation imposed on casino operators. Therefore, the state has managed to improve social amenities as well as the infrastructure. It has also managed to reduce the rate of citizens’ dependence on public assistance for survival to insignificant levels. Several citizens have secured lucrative jobs with the help of gaming. Besides, gaming has led to the upgrading of the tourist industry, which has subsequently stimulated the economy of the state. Similarly, through casino gaming, the state manages to engage criminals in various activities and help them avoid socially evil practices.
Negative Effects of Casino Gambling
Conversely, casino gambling has elicited a widespread negative reputation due to its disadvantages, especially concerning participants. Some players become addicted to slot machines to a level that they have become repugnant to other economic activities. Although the game has sourced numerous benefits for some agents, it has consumed the whole lives of others. This situation has to a large degree caused economic disruption of other businesses which are not related to gambling. Furthermore, the government has increased taxes following the lucrative nature of the gaming business (Haugen 53). This step has affected the casino operators and some have even contemplated closing down their businesses. Other sectors of the economy are equally in danger of economic decline. The result may be the loss of many jobs and low productivity that will render some workers redundant. Similarly, casino gambling is believed to have increased crime rates since its inception against the envisaged benefit that it has brought to society. As a result, expenses for the criminal justice systems have increased as well. Finally, studies have revealed that casino gaming has caused exorbitant social-welfare costs for society as well as government agencies. Although it is said to generate job opportunities, many jobs are simultaneously lost in other sectors of the economy.
Challenges of Casino Gambling
Despite being famous, casino gaming has some challenges. The increased popularity of internet gaming is a serious threat to the industry. It is envisaged that casinos may with time depreciate in popularity if players continue to embrace technology. Another challenge is the citizens’ backlash following the adverse effects of the game. There has been an uproar among the citizens, with some opposing the legalization of gaming due to its effect on crime. The decision to legalize gambling in Florida, for instance, hit a serious counterattack in the form of a referendum. Some states have begun contemplating outlawing gaming fearing the negative effects which outweigh the benefits. Finally, as many other multistate lotteries arise, casino gambling is facing stiff completion, which may outdo its popularity.
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Assignment 2: International Gaming
Casino Gambling in Australia
Another location where casino gambling has taken root in Australia. Casino gaming was introduced in Australia in 1973 at West Point Hobart (Healey 79). Now there is a total of 13 casinos throughout the region with Melbourne and Sydney leading in casino popularity. The Australian government is totally in charge of casino gaming, as it has enacted several related laws. Unlike in the US, the Australian casino business is usually an integrated entertainment complex with hotels, restaurants and conference facilities.
The business is instigated and run by private investors who employ a widespread service. Following governmental legislation, the industry operates well with less crime. As a result, many people have come to value this business and regard it as a full-time career. The industry contributes greatly to the revenue of the country apart from boosting the living standards of individual employees and owners. It was estimated that in 2007 and 2008 financial years alone, the casino business generated up to $4 billion (Healey 32). This money was, in turn, reinvested in other sectors to proliferate the economic activities of the country. It has, therefore, led to the creation of many jobs for the surplus populace of Australia, which could be struggling with the problem of unemployment.
The consumers of products from these complexes also face several benefits that they may draw from the business. The casino industry has made other businesses more vibrant. Consequently, the cost of commodities has gone down due to the healthy competition that exists among several complex owners. In general, they have made a living cost in Australia cheaper and more manageable. The previously run-down urban areas have also been regenerated in the process because of casino businesses. Furthermore, casinos have instigated training programs intending to equip employees with knowledge about running the business and improving service delivery.
Government Regulations of Casino Gambling
As a booming business, casino gambling has some dynamics, which have prompted the government to set up clear regulatory measures. As observed in many other places including the United States, casinos can pose a big threat to the security of the areas if not properly regulated. Besides, it is a conduit for anti-social practices such as money laundering. To curb such happenings, the government of Australia has stipulated regulations that would suffice to bring order and sanity to the industry. It has set the Regulatory Authority that ensures that responsible gambling activities take place across the country. This organization was mandated to spearhead this role through the Anti-Money Laundering and Counterterrorism Financing Act (2006) as well as the Trade Practices Act (1974) (Klassen & Cosgrave 36). Because of the strictness of the authority of the industry, Australia has never been involved in any of the casino-related crimes, as it has been observed in America and other places. Another strategy that the government of Australia uses for managing casinos’ activities is taxation. It is proven that taxation rates on casino business are higher in Australia than anywhere else in the world. Therefore, only those who are serious and willing to comply with the existing regulations will venture into the business. Eventually, the strictness serves the owners, consumers, the society as well as the nation at large.
The casino business in the US is different as compared to the Australian business. The US gaming activities are marred with many dynamics due to diverse regulatory bodies and legislation across the country. These differences are what make it hard to promote harmonious gaming and regulations by governmental organs. In Australia, rules are enacted and enforced uniformly across the country. The United States, on the other hand, have the liberty to instigate the game through state legalization. Not all the states have legalized the game yet. Some states, such as Florida, have vowed never to legalize it because of the envisaged negative impacts (Sinn 14). Others, such as Minnesota, are overwhelmed with the gaming activities due to the benefits drawn from them.
Future Development of Casino Gambling in Australia
Australia is now venturing into portable casinos to supplement its existing inland and coastal casinos. This project will entail having special vessels specifically modeled for the casinos. It will aim to enable sailors to enjoy the game while sailing around the world. Besides, it is another way of attracting and boosting tourism activities. Some aircraft have already been built with casino sections in them, even though they are smaller compared to what the vessels will offer.
Challenges of Casino Gambling in Australia
Casino gambling in Australia also has some challenges, just any other area in the world. For instance, the increased popularity of internet gaming has as well become an unnecessary headache for the industry owners. Researchers have estimated that with time, the popularity of casino business may dwindle if many people continue to embrace computer technology. Another challenge is the citizens’ backlash, which is fueled by the adverse effects of gambling. In some parts of Australia, students also drop out of school to contend for the prizes (Gainsbury 61). This situation poses a threat to the educational sector. It means that if the trend continuous, parents and human rights activists will hold demonstrations across the country to advocate for the abolition of the game. It will be done as a way of saving the future generation as well as other sectors of the economy, which have suffered because of the affinity of the people to the casino gaming.