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Las Vegas is well known because of gambling. Legalized gambling has become an economic and social issue in Las Vegas. It is the most significant phenomenon affecting tourist industry in America and particularly Las Vegas. While some view gambling as highly profitable others view it as a highly regressive industrial policy. In my essay I will focus on key but controversial determinants, such as how spending on casino gambling displaces other economic activities, extent to which casinos retain cash that might have leaked out of the region, and saturation of market leading to wasted investment.
The city lies in the middle of the Vast Western desert. It is the however one of the fastest growing cities in America. It is very true that Las Vegas population and economic growth are due to gambling initially and then to its family-oriented tourist and entertainment complex. You can therefore calculate the direct output, income and employment in the gambling business and come to a conclusion that 0f a staggering multiplier value
Casino economic impact is however different from that of other enterprises in Las Vegas since those of casino are broader and more complicated. The impacts however may be positive or negative. The construction of these gambling facilities generates both direct and indirect impacts. these facilities pay tax which affect both directly and indirectly as do taxes paid by those indirectly affected. Government can reduce taxes since those previously on pay roll are removed from government transfer rolls. There is increase in property values if the facility is a desirable one and there might be a decrease if the facility is not a desirable one. As a negative impact, Pollution and congestion may arise imposing social costs. These facilities may also lead to improvements in terms of production in some businesses that is through sharing new infrastructure or improve business climate in general.
Casinos on the other hand have been affected by the degree of competitiveness in the industry. This is because the current business for casinos is prone to monopoly. Since these casinos have no competitors in the larger regional market they generate higher profits than those in competitive markets. Drain on the public services such as sewers and road maintenance is another negative impact of gambling other more measurable economic costs relate to fluctuation in property values, which may impose some costs just because of their uncertainty. Also higher property values lead to higher property taxes, which may make it more difficult for small business renters. The other negative impact is that some government employees quit their jobs to work in casinos as waitresses at a higher pay forcing closure of some government offices.
In the entertainment and tourism these facilities have different impacts. Some businesses may be in a position to generate more income than others although total spending is the same. Gambling leads to addiction which on the other hand bring drains on the overall economy through lost work time or medical treatment costs. Also there is increase on social ills which are associated with gambling business. These include crime and prostitution.
Gambling has also local effects. It has been a critical component of community economic development strategies. Around 85 percent of Nevada's casino income comes from tourists. Therefore Nevada receives economic benefits of cash lost from gambling while the attendant social and economic impacts of affordable gambling losses are visited on the families and communities in Las Vegas.
As much as we look on overall impact of gambling on people and places it is also worth to look on the social impact. Communities have historically rejected gambling due to perceived social impacts and concern about moral and criminal activities. Individuals spend their welfare cash to buy lottery tickets other than catering for their families. It is very true that when gaming and especially gambling is promoted as the only way of forging ahead and in particular to those who do not have leisure dollars to spend, the economic and social stand of Las Vegas the moral fabric is damaged. As highlighted earlier gambling is addictive and those who suffer from this behavior may cause destruction to themselves, their families work and the community as whole. This may include depression, abuse, divorce, suicide and even individual economic problems. This however has a great impact on the future generations and the future of the whole community. Gambling in U S is mostly a form of entertainment though when one mentions about it many argues that it is an inherently flawed product since those who engage in the business end up in problems. However they do not admit yet the risks appear much higher.
It is also wise to discuss the impact of problem and pathological gambling on individuals since for millions of Americans is a vital consequence of legal and illegal gambling. Studies have shown that roughly 2 million adults in U S are pathological gamblers. Another 3 million are problem gamblers and over 15 million Americans are at risk gamblers while an approximate of 30 million Americans have never gambled at all. Adolescent gamblers are likely to become problem or pathological gamblers in Las Vegas.
Gambling like any other viable business create both profits and losses but the question in place is whether the net increases in income and well-being are worth the acknowledged social costs of gambling. In an ideal environment, policymakers and citizens in large should work together as a community to stop the shortcomings of gambling in Las Vegas. They should however embark on the growing tourists business and also concentrate on the advantages of gambling. Economically gambling's impact are much too complicated for even the most sophisticated economic models. For Native Americans, casinos have been an economic boon, and they represent a very positive example of a minority sharing in the profits. On the other side, in some communities,
Minorities and the poor are a disproportionate percentage of the clientele and therefore a source of gambling losses. Fears that gambling will proliferate throughout the country in a zero-sum game of shifting dollars, abandoned facilities, and every possible social ill are exaggerated. The marketplace will to a great extent dictate the pace and location of casino gambling, coupled with a continuation of government restraint.