The Effects of Casino Gambling on a Local Economy
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This study sought to examine the economic effects of casino gambling on local economies. This issue has become more prevalent in cities across the nation as local leaders look for various ways to boost their local economy. This has become a highly debated topic with the proponents stressing the economic benefits of casino gambling and the opponents stressing the social costs. Data was compiled on 10 metropolitan areas with casinos and 46 areas without casinos. For each metropolitan area, data was collected on population, unemployment, per capita income, and tax revenues for the years 1990 and 2000. The data was collected largely from the U.S. Census Bureau as well as other federal government agencies. The results showed that casino gambling had a definite effect on a city's economy. Per capita income and unemployment rates both showed more improvement than in non-casino areas. Averages taken of the percent change in population and tax revenues showed that non-casino areas performed better in these areas. No definite trend could be established because of the fact that regressions and correlations on these factors were both extremely weak. The most relevant result that this study produced is the need for more research. A broad survey of cities cannot accurately answer the question of whether or not casinos truly help a city's economy. Each individual city is unique and how it will respond to the introduction of casinos can only be assessed by an analysis of factors in that particular city.