Why Gambling Hurts The Economy
Legalised gambling, in general, can be beneficial to the economy. Gambling areas attract tourist, and more tourists equate to more money and funds for local areas. But, unfortunately, gambling can hurt the economy on a larger scale.
Why gambling hurts the economy?
- It can hurt small businesses
Casinos, in particular, are hurting small businesses since the development of complete complexes with restaurants, accommodations, and even shopping malls. Hence, instead of tourists going to restaurants, hotels, and malls, they will just stay in casinos, spend all of their money gambling, and satisfy themselves with the food being served in the casino.
- Unemployment rate increases
Gamblers will tend to lose focus on important things that they need to prioritise, such as their jobs. Employees may skip work to gamble or due to the fact that they are too tired from gambling all night. Excessive absences will lead to unemployment.
Another unemployment reason is poor performance. Losing from gambling can make one anxious, depressed, and unproductive, and those negative feelings will lead employers to terminate their employment.
More and more people are filing for bankruptcy because of gambling addiction. Gamblers tend to gamble more than they can afford. They will gamble all of the money in their bank accounts, or even sell their properties and assets just to sustain their gambling addiction. In the end, they will be left with nothing and have no other option than to file for bankruptcy.
Business owners who gamble will likely close their businesses because of this bad vice. Their employees will be left without work and be added on the number of unemployed individuals.
- Home sales
Mistakenly believing that they can get back all of their money by selling their home for cheap, gamblers will do so and then waste all of the money, once again, on gambling. This will lead to them simply ending up without money or a home.
The number of homeless may increase if gambling is not controlled.
- High loss to financial industry
Gamblers will file a loan to banks or any financial institutions and use the money to gamble. When due date comes, the banks have nothing to collect since the borrower already spent all of the money gambling. People with credit cards max them out in order to gamble online and then are unable to pay back the debt.
Lenders will be left unpaid, hence loss to financial institutions.
Overall, gambling hurts the economy big time.