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We did not talk to academics in the gaming industry to avoid leaning to either side, focusing on researchers who aimed to provide the best information, not positive or negative.
In general, casinos that attract customers from the suburbs bring the greatest economic benefit to the host community. Otherwise, the negative and positive effects are statistically small, disappearing quickly after several years when the casino opens.
In particular, if there is a highly paid and well-paid labor union, the first merit is the creation of new employment. Casinos have the effect of introducing private funds in addition to public funds as part of urban redevelopment, but that alone is unlikely to generate new economic activity. The main disadvantage is that the social cost of gambling addiction and the proceeds of charity bingo fall considerably.
“I think this paper is a pretty good indicator of what economists know about this,” Humphreys said. “Even if a new casino opens, the value of the property near the casino may drop, but it does not seem very effective except that it does not last very long after opening.
Once again, the ability to attract suburban customers is the best indicator of success. Still, Humphreys says, apart from local charitable gaming venues, there is no evidence that the casino harms other local businesses. “The evidence I’ve written, which is fairly thorough research on this subject in peer-reviewed journals, shows that nothing really bad can happen with the opening of casinos,” he said. “I don’t think much research from academic literature suggests that casinos can severely destroy communities.
- “It’s obvious that if you have the chance to gamble, there are people who ruin yourself and your family, which is bad. However, the percentage of gambling addiction is quite low.
- Also, Humphreys says, areas already familiar with gambling, such as Sudbury Downs slots, have much less impact on gambling issues than areas where you can have a casino for the first time.
- “People trying to ruin themselves or their families can use the casino.