THE SOCIAL AND ECONOMIC

IMPACTS OF GAMBLING
Mgt E 513N – APPLIED ENGINEERING ECONOMICS

PRESENTED BY: JOSEPH NOEL O. COSCOS

 CONTENTS

PART O NE P ART T WO PART T HRE E PART FO UR

Definition of
Gambling, Types of Economic Social
Economic Gambling Impacts of Impacts of
and Social Gambling Gambling
Impacts
 PART ONE

DEFINITION OF GAMBLING,
ECONOMIC AND SOCIAL IMPACTS
 DEFINITION OF GAMBLING, ECONOMIC
AND SOCIAL IMPACTS

GAMBLE
√ 1. Play games of chance for money; bet (a sum of money) on a game of
chance.
2. Take risky action in the hope of a desired result.

ECONOMIC IMPACT
√ The economic impact is the financial effect that an event, program, project,
or policy has on an entity. That entity could be a person, a neighborhood, a
city, an industry, or an entire country.

SOCIAL IMPACT
√ Social impact can be defined as the net effect of an activity on a community
and the well-being of individuals and families.
 PART TWO

TYPES OF GAMBLING
 Types of
Gambling

Gambling comes in many different

forms:
1. Commercial gambling includes
lotteries, instant lotteries,
number games (such as Lotto
and Keno),
2. Sports betting, horse betting,
3. Poker and other card games,
4. Casino table games (such as
roulette and craps), bingo, and
5. Electronic gaming machines
(EGMs).
6. Internet Gambling
7. Illegal Gambling (PD 1602, RA
NO. 9287)
 PART THREE

ECONOMIC IMPACTS OF
GAMBLING
 ECONOMIC
IMPACTS

Government Revenue
Government revenue received directly from gambling provision or indirectly from taxation of
businesses providing gambling. Taxes come in the form of licensing fees, property tax,
corporate income tax, and goods and services taxes.

Public Services
Changes in the quantity or quality of government or charity provided services (e.g., health
care, education, social services, infrastructure, etc.) as a direct or indirect result of increased
government revenue from gambling.

Regulatory Costs
Changes in the amount of government revenue directed to ensuring that the new form of
gambling operates according to government regulation.
 ECONOMIC
IMPACTS
Infrastructure Value
The introduction of any buildings (e.g., casino), roads, and infrastructure upgrades which add
to the capital wealth of the community and which are directly or indirectly attributable to the
introduction of gambling.

Infrastructure Costs
The amount of revenue allocated by various levels of government to support the
infrastructure needed to service new gambling facilities (i.e., road maintenance, utilities, fire
services, police services).

Business Starts and Failures

The number of new businesses as well as business failures (commercial bankruptcy)
associated with gambling introduction. Certain businesses should receive particular attention
because research has shown them to be more likely impacted by gambling introduction.
Specifically, these are other forms of gambling (i.e., bingo, horse racing, lotteries); the
hospitality industry (i.e., hotels, restaurants, lounges); the construction industry; pawnshops;
cheque cashing stores; horse breeding and training operations; tourism; and other
entertainment industries.
 ECONOMIC
IMPACTS

Business Revenue
Changes in overall business revenue/sales in industries that are typically affected by the
introduction of gambling.

Personal Income
Changes in average personal income or rates of poverty associated with gambling
introduction.

Property Values
Changes in property values in geographic areas proximate to new gambling venues.
 PART FOUR

SOCIAL IMPACTS OF GAMBLING

 SOCIAL
IMPACTS

Problem Gambling
• Changes in the prevalence of problem gambling and the main indices potentially
associated with problem gambling (i.e., personal bankruptcy rates, divorce rates, suicide
rates, treatment numbers).
• There are also monetary costs associated with changes in problem gambling that should
be tabulated (and included in the Economic Impact section).
• Specifically, these are the amount of money spent on a) treatment and prevention; b)
policing, prosecution, incarceration, and probation for gambling-related crime; c) child
welfare involvement for gambling-related family problems; and d) unemployment and
welfare payments and lost productivity because of gambling-related work problems.

Crime
Change in the rate of crime and gambling-related crime. This would also include any
observed decreases in illegal gambling with the introduction of a legalized form.
 SOCIAL
IMPACTS

Employment
The number of full and part time jobs that are directly or indirectly created as a result of
gambling introduction and the percentage of the general workforce that this represents.

Leisure Activity
Changes in the pattern of leisure behavior associated with gambling introduction.

Public Attitudes
Change in public attitudes associated with gambling introduction. This could include changed
attitudes about gambling (e.g., perceived benefits/harms), or changed attitudes about
government or the role of government for allowing/providing gambling, etc.
“Change you life today.
Don’t gamble on the future,
act now, without delay.”
-Simone de Beauvoir

THANKS