Social Policy

Gambling Has Economic Benefits And Social Costs

In at least ten states, gambling has erupted as a hot political issue this year. Supporters see gambling as a source of jobs and economic development; but opponents criticize it as a regressive tax that penalizes the poor.

Only Utah, Hawaii and Tennessee have no form of gambling at all. Among the other states:

  • Thirty-seven have state lotteries.

  • Ten states have commercial casinos and 19 have tribal casinos.

  • Horse racing, dog racing or jai alai are allowed in 41 states.

  • Charitable gambling is permitted in 46 states.

Fifteen states use lottery money specifically for education. But some experts contend that lotteries don't increase education spending overall. Instead, many states use lottery money in place of other state revenues used for schools.

Most gambling produces economic gains, but inflicts offsetting social costs, says Denis Rudd, author of a college textbook, Casino and Gaming Operations (1996). Among the social costs are gambling addiction, increases in the number of crimes and revenue losses in other industries.

Source: Jill Lawrence, "Politicians Roll the Dice on Gambling," USA Today, July 20, 1998.



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