Casinos and the Economy: December 2011

Casinos

There are many casinos all over the World. When you think of casinos you think immediately about Las Vegas, Nevada. The biggest casino/gambling city in the United States. It is also one of the top tourism cities in the United States. It wasn't always that way though. Being in the middle of a hot desert you wouldn't think that this town would be as famous as it is today. Thanks to casinos a lot of cities like Las Vegas have had the same luck around the World.

World Casinos Directory

Picture

Casinos are Good for More than Just Gambling?

Yes, casinos are known to be the spot for people to go gambling, blow money away, and have a good time, but have you ever thought about the things casinos are good for besides just gambling, blowing money, and having a good time? Casinos can also help by impacting the economy in a positive way. Casinos do this by drawing tourists to the city, creating jobs, and bringing in tax money. It's weird to think that something that is sometimes frowned upon by certain people can actually really help the economy. An exapmle is Las Vegas, a town in the middle of a desert that sprung up because of casinos being built and before anyone knew it, it had become a famous tourist attraction. The tax money earned goes to help improve schools, roads, and any other thing paid for by the government.

Las Vegas History

Picture

Tourism and Casinos

The first way casinos help the economy is by bringing tourists into the city or state where they are located. This is important because if people are traveling it means that people are spending money and that goes into the economy. Consumer confidence is very important to an economy and if people are going to visit casinos to stay the night at or just to visit they are most likely spending money there. It also benefits other businesses around the casinos because people are probably visiting those places on there trip too. Casinos can help turn a run down town into a tourist attraction for everyone to visit and help this can boost the economy.

Office of Travel and Tourism Industries
Las Vegas Strip

Picture

Tourism and Casino Example

According to a poll 76% of people agreed that casinos play a important role in a cities tourism (The Effects of Casinos). An example to show that casinos play a part in the economy and tourism is Atlantic City, New Jersey. From the 1880's to the 1940's Atlantic City was a popular tourist attraction because of its beaches and carnival like atmosphere. However, during the 1950's and 1960's the city ran into a problem because people were taking trips to warmer beaches like in Florida. Because tourism was the cities main industry the city fell into an economic slump. It wasn't till 1976 that gambling was legalized here and the city came out of its economic slump (The Effects of Casinos). The reason behind it was because of the casinos that started to attract visitors back to the area. Today it is still a popular spot for people in the northeast to visit or stay for a quick trip.

The Effects of Casinos

Picture

Creating Jobs

The second way casinos help the economy is by creating jobs. It takes a lot of people to run and keep a casino going, especially if it is a hotel too. You need many things like maids, cooks, dealers, managers, etc. Trump Entertainment Resorts in Atlantic City has 7000 employees between its two properties there and they are still hiring (Trump Employment). At a time when unemployment is high, casinos can help lower uneployment rates. Casinos help keep the unemployment rate low not just in the United States but also around the World.
Trump Employment

Picture

Other Ways Casinos Create Jobs

   Another way to think of how casinos create jobs is with the building of casinos. They must hire a builder, designers, architects, all the things that goes into creating a building. Not only does this help the economy by employing other business, it also puts money into companies who build pipes, sinks, building materials, etc. Casinos are a great way to start a snowball effect of creating jobs. Another good thing is that a lot of the jobs will be long term like the ones working in the casino so people wont have to worry about finding a new one.

How to Build a Casino
                                                                                          Picture

Casinos and Taxes

The last major plus about casinos is the taxes that are made off of them. A certain percent of the money casinos make must be given to taxes. This money goes to the government to pay for things that need to be taken care of. This could be anything from trash pickup to fixing public schools. Every state is different in their percentage but Las Vegas is that casinos with more than 15 slot machines must pay an annual tax of $250 on each machine (Nevada Gambling: What You Need to Know). There is also an additional monthly tax of up to 6.75% on gross gaming revenue (Nevada Gambling: What You Need to Know). Atlantic City casinos must pay 8% which is more then the 6.75% Nevada casinos must pay. No matter how much the casino must pay that percentage goes to the government to help pay for things we need.

Nevada Gambling: What You Need to Know

Picture

Casinos and Taxes on Winnigns

Picture

Not only does money get taken out of casinos taxes but a certain percent of tax money gets taken out of gambling winnings also. If you had gambling winnings, the casino must withhold 28% as income tax. The rate is 25% if the amount is over 5,000. When the winnings exceed a certain amount the casino will give you an IRS form showing the amount you won and amount of tax (Nevada Gambling: What You Need to Know). People may not win all that often but when they do some amount is giving to taxes. While this may seem like a bad thing for the winner, it is good for business of the casino and good for the economy.

Nevada Gambling: What You Need to Know

Merchandise

Casinos help the economy in a lot of ways but it also helps in little ways too. Casino merchandise also helps put money into the economy. Consumer confidence plays a big part in the well being of the economy. If people are willing to buy t-shirts and other kids of merchandise from the casino it is also bringing money into the economy and helping even if it is only a tiny bit. As long as people are going to casinos and spending money there it is somehow helping the economy.

Online Casino Merchandise

Picture

In The End

Casinos impact the economy by drawing in tourists, creating jobs, and bringing in tax money. Not only do they do this but so much more too. They are a place for people to go and have a good time, win money, and hangout with new and old friends. People help the economy by going to casinos and they don't even realize how or what they're doing to help. As long as casinos stay alive and vibrant they will be able to help the economy for years to come.

Picture