An Introduction to the Consequences of Gambling

by Chad Hills

Gambling incurs a heavy cost on individuals, families and communities. Economically, its costs outweigh the benefits as well.

Rarely, if ever, does gambling result in a positive social outcome. Even those who defy the astronomical odds and "win big" often return to the trough from which they were fed — to play for more money. Riches turn to rags, and the cycle of destruction begins afresh. The appetite of addiction is never satisfied. The costs are great, and the returns are poor. Why do we, as a society, continue to promote gambling?

Economically, the cost of gambling to the taxpayer is a losing proposition. The cost of gambling to the taxpayer is a losing proposition. John Kindt, Ph.D., professor of commerce and legal policy at the University of Illinois, asserts that for every dollar of revenue generated by gambling, taxpayers must dish out at least three dollars in increased criminal-justice costs, social-welfare expenses, high regulatory costs, and increased infrastructure expenditures.¹ In 2003, Gov. Kenny Guinn of Nevada gave his State of the State Address that sounded an alarm every state official should heed these words:

For years, our economy has depended almost exclusively on tourism and gaming [gambling], rather than by exporting goods and services. Three out of every four of our tax dollars are collected from sales and gaming taxes; taxes vulnerable to swings in the economy. … Implicit in this tax strategy was a belief that the revenues from gaming and tourism could keep pace with our growing and diverse population. Unfortunately, this strategy has failed. … My fellow Nevadans, the lesson from the last 20 years is clear; our revenue system is broken because it has relied on regressive and unstable taxes [from gambling].

Many people, who have never lived in or near a gambling community, fail to recognize that this tragic "cancer" even exists, and they do not realize the host of social ills gambling creates. Addiction, child abuse, domestic violence, marital dissolution, destruction of families, suicide, crime, exploitation of the poor, government corruption, the demise of local businesses, economic instability and gambling-induced bankruptcies are well-documented injuries that gambling inflicts on people, communities and states. Gambling is a social cancer that ravages the communities in which it metastasizes.

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