The effects of gambling are complex and varied, manifesting themselves on different levels: personal, social, and societal. Among these, the financial impacts can be quantified as the revenues generated, the economic impact as a result of tourism, the infrastructure costs, and changes in value and financial circumstances, and the social impact, as a result of the increased risk of crime, poverty, and increased unemployment. The health impacts relate to the physical and psychological well-being of individuals affected by gambling.
Impact of gambling on small businesses
The introduction of gambling has had a wide range of effects on the economy. The expansion of casinos in many areas has increased local economic activity, particularly in smaller communities. The introduction of gambling also cannibalizes other industries. This substitution is not complete, however, and the impact varies depending on the sector. Siegel and Anders found that casinos primarily harm industries that are closest to their consumers, whereas they tended to help more traditional industries.
Some studies attempt to quantify the benefits of gambling by calculating the consumer surplus – the difference between what people would pay for the product or service without it – and the amount of money consumers spend on the activity. The Australian gambling industry has estimated that this activity generates between $8 and 11 billion dollars in consumer surplus per year. But this monetary figure is arbitrary, and does not reflect the nonmonetary or social effects of gambling.
Impact of gambling on society
There are several different impacts of gambling on society, including economic activity, social services costs, and crime. While the financial costs of gambling are easily measured, psychic costs such as lost productivity and co-morbidity are far less tangible. In addition to the economic costs of gambling, the effects of excessive gambling on society can be detrimental to the health and relationships of individuals, families, and co-workers. However, regardless of the specific impacts of gambling, the debate about the social benefits and costs of this activity continues.
While the negative effects of gambling on society can be felt in every country, the negative effects are more severe in areas with high numbers of gamblers. On average, pathological gamblers cost society anywhere from $13,200 to $52,000 per year, but their losses are greater for smaller businesses and organizations that don’t have the resources of large enterprises. However, the studies that are available show that gambling isn’t nearly as harmful as many people think, despite the negative aspects of it.
Impact of gambling on job performance
Gambling can negatively impact the workplace. Employees who become addicted to gambling will experience reduced productivity, increased absenteeism, and even theft. In addition to affecting their jobs, employees who are addicted to gambling may face a number of financial problems including bankruptcy and crime. Problem gamblers also tend to lose track of important deadlines and produce poor work. Their gambling behavior can also affect their physical health. Employers should take steps to protect their employees from these potential hazards.
The external impacts of gambling can be categorized as societal, community, and personal. The personal level impacts can be defined as those that occur directly to the gambler, while the interpersonal and societal impacts are often overlooked. Among these, the long-term impacts of problem gambling are the most difficult to measure. The following table outlines the most common types of gambling impacts: