Are you wondering whether casinos have a positive impact on the economy? This article will explore the effects of brick-and-mortar and online casinos on economic growth, as well as the potential risks and rewards of legalizing gambling. Discover the facts surrounding this controversial issue!

The Economic Benefits of Casinos

They have long been seen as an attractive source of revenue for local and state governments, with the belief that gambling can help stimulate local economies. From increased employment opportunities to increased revenues from taxes, it is argued that casinos have a positive effect on economic growth.

The most obvious impact of them is the number of new jobs they create. For instance, a large casino may provide several hundred or even thousands of new jobs. This helps not only boost employment in the area but also encourages people to come and stay longer, which can result in more money being spent locally.

In addition to creating more jobs, money spent in a casino has positive ripple effects on the economy. The money spent on gaming tables and real money slots machines ends up going into other sectors such as restaurants and entertainment venues located nearby. This encourages further development in nearby neighborhoods where additional businesses become profitable due to increased customer demand.

It is often believed that they benefit from tax revenue as well; however, this is not always true. Taxes levied on casinos vary greatly by state or jurisdiction; some states do not tax them at all while others tax them heavily.

In cases where there are high taxes placed on gambling establishments, it can be difficult for operators to turn a profit and this can limit their ability to contribute positively toward economic growth.


They can also have an indirect effect on other parts of the local economy through tourism and entertainment spending associated with the industry itself—visitors attracted by casinos often spend money at restaurants and retail stores near the casino property or participate in other forms of leisure activities.

This provides further stimulus to surrounding businesses and helps drive overall economic activity upwards over time.

Impact on Local Businesses

It’s common to associate them with tourism, entertainment, and economic growth. Many communities around the US have seen the benefits that a well-managed casino brings to both its visitors and the local population. One of the main successes of casino development is its impact on local businesses.

The influx of customers provided by them can have a significant effect on those businesses located in nearby areas. An influx of new visitors can boost sales for restaurants and shops near them, helping them stay afloat or expand their business reach even further.

Other benefits include increased staffing for customer service personnel, access to better resources for small businesses, and overall diversification of industry in the region. Moreover, when neighboring towns also benefit from spending associated with these larger establishments it helps create a healthier environment for all involved.

The increase in competition amongst local businesses has also been seen as something positive as it often leads to improved services and products that customers can find at more attractive prices than before the casinos were established in their area.

Additionally, since gambling activities are often tax-free this means that local governments benefit from additional revenues generated elsewhere which helps stimulate public spending projects contributing to economic growth in turn.


Finally, many large companies commit themselves to philanthropic causes within their community or abroad which ultimately helps support smaller entities or initiatives either through donations or promotional campaigns benefiting all citizens alike.

Impact on Employment

The potential for them to generate job growth is one of the largest benefits many local governments have viewed when determining whether or not to allow them in their jurisdiction. When evaluating a casino’s impact on employment, it is important to consider both the direct and indirect job opportunities created by its operations.

In terms of direct employment, they typically provide jobs for workers in the hospitality industry such as cooks, waiters, cleaners, maintenance staff, and security officers. As well as those working in the casino itself like dealers and cage personnel.

Indirect jobs may include developers and building contractors that construct a new casino and its accompanying facilities. Businesses providing goods or services (e.g. suppliers of products) to the casino may also benefit from increased demand due to its operation and may lead to some degree of local job growth as a result.

Furthermore, depending on their location, they may create an influx of tourists leading to other businesses experiencing increased demand in areas not associated with gambling such as restaurants and tourist attractions.

This ripple effect has been reported by many studies examining the economic impacts of established land-based casinos in their respective regions either within or outside the US borders.

Impact on Tourism


One of the major effects that they have on local communities revolves around tourism. There are many benefits for a region or city when a casino is introduced, specifically related to boosting tourism and economic activity in the area.

According to research conducted by The American Gaming Association, casino gaming contributed $37 billion in taxes from 2014-2016, with the approval of 52 new casinos across the United States.

New casino openings often coincide with an increase in visitor spending within those areas. Research has demonstrated that people tend to stay longer, visit other attractions and attractions in neighboring areas, and spend more money within local businesses when there is a casino presence to act as an anchor attraction.

This generates more income for the local economy through hospitality-related services, as well as leisure activities such as dining out and shopping. Finally, increased job opportunities also become available once casinos start operating in new locations – adding total economic growth in terms of job creation.


Reaching a conclusion on the overall economic benefit of casinos is difficult without considering the regional effects and the long-term viability of such endeavors.

On the positive side, increasing employment opportunities and income can certainly be beneficial to local economies, particularly in areas with limited job options. Additionally, research has established that local populations consistently view casino operations as a positive part of their communities.