In the United States, casino gaming has been adopted as a strategy to impact the economy. Casino gambling is growing rapidly in many states, and the source of the growth is both extensive and intensive. The districts that initiated gambling have grown and evolved in recreational complexes. Nevada is among the oldest areas in America where the casino was established on the tribal land for economic purposes. However, many other states have made casino gaming legal. The current paper discusses reasons for instituting casinos, ways it was introduced, and beneficiaries of casino gaming. Furthermore, the paper identifies whether it was successful as well as the negative and positive impact of casino gaming in Nevada.
Reasons for Instituting Casinos
The primary reasons for the casino development include generating tax revenue and maintaining money of local gaming in the state. Moreover, casino gaming contributes to the tourism activity in the community. Being an attracting site for tourists, casino gambling generates money and enhances employment. Casino business in Nevada is known to contribute to other businesses related to tourism. In addition, casino gaming did not cause an increase in crime rates in the area, although it was anticipated, neither did it lead to an increase in bankruptcy.
History of the Casino Gambling Introduction
The gaming has been a part of the culture in Nevada long before the inception of the state. Prospectors who traveled to other areas in search of gold introduced this game. However, President Lincoln had appointed James Nye, the governor who was against casino gaming, and he encouraged the legislature to ban all the games in the 1860s. The government implemented the ban on the game, and stiff penalties were to be encountered by participants of casino games. When Nevada became a state, there was an attempt to legalize gaming but the plans failed. Nevertheless, the penalties of gaming were reduced with the only punishment being administered to operators not to players as it was before. In 1869, the legislature succeeded in banning all games of chance.
The years that followed made gaming laws complicated but allowed particular games to be played such as cigars and paying out drinks. By the year 1919, all card rooms were licensed throughout the counties and cities. As a result, games such as whist and bridge could be played. However, it came to the realization that with licensing of gambling both clubs and card rooms could offer illegal games. When the Great Depression swept the United States, the conflicted gambling feelings experienced in Nevada were finally settled, and a bill was passed that allowed the casino gaming to be operated openly. In 1931, all the gaming in Nevada, including small card games and illegal money betting made in the back rooms, was legalized. The adoption of the legislation permitted the gaming industry to operate, which gave rise to the modern casino that is enjoyed and cherished by many people.
The casino gaming has continually faced other challenges and new opportunities in equal measure. Some challenges include the Great Recession, which tampered with consumer spending and the expansion of gaming industry to other countries globally. Local consumers were cautious about the flexibility of dollars, but visitors in Nevada supported the casino industry. There have been emerging technologies that resulted in interactive gaming, allowing Nevada to participate in Internet-based poker, among other games. There was also the completion and announcement of new properties to upgrade existing casinos to encourage more tourists in the country.
Beneficiaries of Casino Gambling
The casino gaming in Nevada was beneficial to both the local people and the country at large. These casinos have employed over three hundred million workers since it is the biggest employment segment in the state. Nevada casinos pay more remuneration, salaries, and benefits as compared to other sectors. Wages and salaries result in over 78% of the operating costs while the remaining 22% is paid to employees as health benefits. It is known that the casino gaming pays more than 30% of health benefits of employees in the state. When considering indirect and direct impacts, wages, employment, and economic activities lead to a total of $52 billion of the economic impact of the casino. The gaming industry also funds public schools in Nevada. Furthermore, the casino gaming industry donates millions of dollars to Nevada philanthropies and charities. Moreover, the gaming also supports health care, education, as well as senior and diversity care. The funds from gaming industry are sent to local organizations, which benefits the local community. The charitable organizations supported by the casino gaming include American Red Cross and Opportunity Village, among others.
The government has benefited from casino gaming as well through the fees and taxes paid by operators. These contributions are among the largest revenue sources that include property tax, sales tax, and gaming tax. Through the mentioned taxes from tourism and the gaming industry, businesses and residents in Nevada enjoy the lowest tax imposed. With the casino gaming, tourists have invested over $40 billion in the past couple of years with a cumulative investment of over $45 billion. Hotels operating in casinos have also drastically evolved because non-restricted license revenues have increased since 1994. The casino has become a multifaceted amusement destination with shopping, meetings, restaurants, as well as individual events, becoming significantly crucial elements for every visitor to experience.
Success of the Industry
The gambling in the casino has been successful since the adoption of the Bill 98 in 1931 by Fred Balzar, who was the governor of the state. The bill legalized a significant number of games; thus, taxes and fees have significantly increased, leading to more revenue generated by the state. Casino gambling has become more differentiated, as it has many forms, such as machine gaming, state restricted gaming, charitable gaming, Indian gaming, and table gaming.
Positive and Negative Impacts
There are various positive impacts of casino gaming that include more job opportunities for local people. Although the jobs are low paying, workers in casinos have the best insurance coverage. The casino also creates employment opportunities in some remote areas where securing a job could be impossible. Moreover, the casino gambling is a powerful tool for the development as it increases the net export of the region. Particularly, the amount of services and goods exported are greater than the amount imported. However, the primary negative impact of casinos includes worsening public services such as road maintenance that is relatively high.
Casino gaming has led to economic development in Nevada and it will continue to essays about books
grow in other states, following the legalization of gaming activities. Casino gambling is a good development strategy to boost the countries that lag behind economically. Moreover, the gaming stimulates the growth through the employment and earnings, as well as it enhances the development through income per capita.