Destination casinos are gambling establishments that target tourists as their main clientele. They provide an opportunity for tourists who may not have access to betting places in their home countries to play the wide variety of games they offer. They are mostly found within resorts, and hence, tourists have easy access to them. Although people can still bet on online platforms like the GGbet welcome bonus, it is still intriguing to be able to visit a physical casino and play the games.
As destination casinos have become more prevalent, they have impacted the economies of the local communities they inhabit. This impact is more profound in some areas than others and can be both positive and negative.
Positive Economic Impact
Destination casinos are usually built as part of massive tourist resorts that offer accommodation and other varied forms of entertainment. Some of the positive results of having casinos include:
Tax Revenue
Gambling houses make for a lucrative tax revenue source for the government. The taxes charged on the betting proceeds also benefit the community as, most of the time, the government applies them to the social needs of the community. This factor really has been the biggest motivator for governments to license and even legalize gambling in their areas of jurisdiction.
Job Opportunities
The locals get employment opportunities to work at the resorts as well as the casinos. Though most of the jobs offered would be low-level work, it still helps the community as hundreds or even thousands of people are employed. This results in the empowerment of the local communities, which are able to earn a living. Moreover, this translates to an empowered community that is able to make a living and hence provide for their families.
Stimulating Economic Activity
Having a casino causes a ripple effect on the community’s economy. First, the government raises revenue to fund its projects, improving the community. The people employed through the casino also make money, meaning they have the power to spend within their community, thus spurring its growth. And finally, the casino is built in a resort that attracts tourists who come and spend money, further growing the economy. Thus, the presence of these destination casinos spurs the secondary economic growth of an area.
Negative Economic Impacts
Though destination casinos have positive impacts on the economy, there are still those who argue against them. At the end of the day, there will be some negative side effects to them, including:
Strained Resources
At times, these betting establishments are built in areas with limited resources, such as few roads or sewerage systems. When the gambling dens come in, they bring with them high volumes of tourists who eventually need to use the very limited resources the locals were enjoying. This leads to congestion, and the locals are highly disadvantaged.
Substitution Effect
This occurs when consumers opt to spend money on one thing as opposed to another. Whenever betting houses are introduced in an area, the locals, as well as the tourists, will opt to spend money there as opposed to buying goods and services in the local stores. Thus, money that would have gone towards uplifting a local business now ends up in a slot machine, and the player will probably lose the round. Tourists would also rather spend all their time and money at the resort instead of venturing through the local area and spending money in local restaurants.
Increase in Addiction
The presence of destination casinos offers gambling opportunities to the locals that were not there before. If not properly regulated, the local community may be affected by gambling addiction as they struggle to comprehend the negative effects of wagering. An increase in betting could also lead to an increase in the use of alcohol and other drugs. This will result in addictions and substance abuse. Generally, most gamblers will have a drink or two as they play various games at the casino. Once this becomes a frequent occurrence, users may slowly fall into addiction.
The upshot is that there are credible positive impacts a destination casino would have on the local economy. At the same time, the negative impacts are also very evident and cannot be ignored. The government, therefore, needs to balance the positives and the negatives when awarding licenses to these punting houses or making legislation to legalize wagering in their respective areas. Although they drive economic growth, some studies have found that they simply change spending patterns but do not necessarily spur economic growth.
Having a casino at a resort is certainly an attractive feature to tourists who wish to unwind and relax on holiday. Some people even book their stay solely so that they can access the gambling house. It is quite an exhilarating feeling to experience all the slot machines and the adrenaline rush from punting, and tourists are certainly going to keep going back to these destinations for more.
