Economic Impact of Gambling


Gambling is the action of betting money on a random event with the intent of winning something else of value. It requires three elements: consideration, risk and a prize.

Physiological effects on gamblers:

People can experience a variety of benefits when they play gambling games, such as mood change and a sense of achievement. These emotions are caused by the release of the neurotransmitters adrenalin and endorphins, which are linked to the brain’s reward system.

Social benefits:

Gambling can improve social relationships by providing a means of communicating over a shared interest. It can also teach individuals to be more responsible and accountable for their actions.

Economic effects:

Increasing access to gambling can benefit the economy through more jobs in the industry, increased tax revenue, and higher income for workers. It can also lead to lower rates of unemployment and reduced crime.

Intangible impacts:

Many economic impact analysis studies omit intangible benefits and costs, such as environmental effects. It is therefore important to include these in future studies, especially if gambling is to be considered a legal activity.

Debt incurred:

Pathological gambling can result in additional debt, which may not be a cost to society but is instead a transfer of consumption from one group in society (lenders) to another (borrowers). In economic impact analysis, only that portion of the incremental debt that is unrecoverable due to bankruptcy or nonpayment should be considered a real cost to society.

It is important to seek treatment if you are struggling with gambling. The good news is that it is often possible to stop gambling with proper help.