Casinos: The Effects of Casinos - The Lack Of Balanced Data

Assessing the overall effects of casinos on society is a difficult task. There are many factors to consider. Most relate to economics, but some relate to quality of life and moral issues. The latter are difficult to gauge in quantitative terms.

In 1996 Congress created the National Gambling Impact Study Commission (NGISC) to study the economic and social impacts of legalized gambling. The commission included nine members and conducted hearings during 1998 in Las Vegas, Nevada; Atlantic City, New Jersey; Chicago, Illinois; San Diego, California; and Biloxi, Mississippi. The NGISC's final report was published in 1999.

The report's findings on the local impact of casino gambling can be summarized as follows:

• Casinos are associated with increased per capita income in the construction, hotel, lodging, recreation, and amusement industries but decreased per capita income for those working in local restaurants and bars.
• The economic benefits of casinos are particularly impressive in economically depressed communities.
• Casinos create full-time entry-level jobs that are badly needed in areas suffering from chronic unemployment and underemployment.
• Unemployment rates, welfare payments, and unemployment insurance declined by approximately one-seventh in communities close to newly opened casinos.
• In terms of income, health insurance, and pensions, casino jobs in the destination resorts of Las Vegas and Atlantic City are better than comparable jobs in the service industries.
• Small business owners located near casinos often suffer from loss of business.
• Tribal casino workers have complained about lack of job security, an absence of federal and state antidiscrimination laws, and the lack of workers' compensation benefits.
• Elected officials from casino towns expressed support for casinos because they improved the quality of life in their towns and funded community improvements.
• Problems with pathological gambling increased in seven of nine communities surveyed.
• The AGA is the largest source of funding for research on pathological gambling.
• Many casinos train management and staff to identify problem gamblers among customers or employees.
• Many tribal casinos contribute money to nonprofit groups dealing with problem gambling.

The report concluded that lack of objective research data on gambling issues was a major hurdle in determining the extent of its effects on society.