Many states have allowed commercial betting games because they perceive it as a means of spurring economic development. Improved employment, increased tax revenue for state and local governments, and expansion in local retail sales are the most often acknowledged benefits.
- Betting game club’s create more jobs.
General casino proponents frequently cite a lower local unemployment rate following the establishment of a betting club as proof that the platform boosts local jobs. Because the local unemployment rate fell when the betting club opened, it’s safe to assume that the betting clubs contributed to the decrease. During the same time period, the change in the local unemployment rate should be compared to the change in the statewide unemployment rate.
If the changes are similar, it’s probable that the entire increase in employment in the betting club industry is due to the natural movement of the business cycle, rather than the betting club’s debut. If the local drop in unemployment is greater than the statewide drop after the betting club opens, the establishment could be said to have reduced local unemployment.
The objective is that changes in local unemployment should be contrasted to changes in statewide unemployment. When comparing local unemployment numbers before and after a betting club opens, other factors such as population changes and local economic conditions should be taken into account.
- Tax revenue of the betting club is a win-win situation.
Betting club’s tax money is used by state governments for a variety of purposes, although it appears that public education is the preferred destination for its tax revenue in many states. In reality, states frequently tout the amount of money intended for public education from betting club’s income. This suggests to the public that education spending has increased since money was taxed.
- Betting clubs aid in the growth of local retail sales.
In the scholarly literature, the question of whether betting games benefit or damage local retail sales, and consequently retail sales tax receipts, has gotten the greatest attention. In essence, the betting platform’s impact on local retail sales is determined by how many people they attract from outside the area compared to local customers. If the majority of patrons are local, retail sales in the surrounding area are likely to suffer.
Another thing to keep in mind is that many betting clubs include restaurants, shops, and hotel rooms available to patrons. State and local sales tax regulations apply to all things purchased in these establishments. A potential drop in local retail sales could be somewhat offset by an increase in retail sales activity in the betting clubs.