Gambling's Costs Outweigh Benefits
Gambling Costs Outweigh Benefits
Information gathered by the American Policy Roundtable

Gambling creates revenue for state governments. But are the costs associated with legalized gambling higher than the benefits?

Dr. Earl Grinols is an economics professor at the University of Illinois. He's been studying the economic impact of legalized gambling for decades. His most recent research draws some startling conclusions. Dr. Grinols has taken all the economic factors into consideration surrounding areas that opened new casinos. He includes the costs associated with development, police and court costs, bankruptcies, job losses, etc and balances them against the revenues casinos create for state and local government by the casinos.

In his best case scenario he finds that for every dollar the state gains from casino gambling it spends $1.90 in costs. His mid range numbers reveals that in most cases the cost of raising $1 for the state is closer to $5.40. In other words, when all factors are honestly built into the model the state cannot even break even by opening casinos.

So why would any state continue expanding gambling if Dr. Grinols numbers are correct? Because the gambling industry keeps scamming the political process and convincing elected officials that they are losing money to not open casinos.

Here in Ohio and Pennsylvania the gambling industry is flashing their bankroll at the state capitols trying to legalize casinos even as we speak. If Dr. Grinols and his colleagues are correct the promise is one more empty bet for state governments.

Gambling's Costs Outweigh Benefits - The Public Square Transcript

Legalized Gambling Casinos Cost Billions

According to Christiansen Capital Advisors, LLC, "The increased gambling revenue of $2.975 billion by 2008 means $2 billion will leave the existing Ohio economy and flow into the casinos. How many jobs will be lost as that $2 billion dollars disappear from the local consumer economy?" And that doesn't even count the social costs.


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