Categories: Gambling

The Impacts of Gambling on Small Businesses and Indian Reservations


The issue of gambling has been the topic of several studies. However, less attention has been paid to community and society level impacts. Most studies have been conducted in North America, where casinos are prevalent. This article discusses the impacts of gambling on small businesses and Indian reservations. Ultimately, it is important to know the facts before you start playing games. Here are a few of these studies. Read on to learn more. Listed below are some of the main findings:

Impacts on individuals

The impacts of gambling are observed on many levels: interpersonal, societal, and personal. Personal effects include the effects of gambling on a person’s self-esteem, health, and relationships. Societal impacts include the effects on communities, infrastructure costs, and values of property. Socially significant effects include those involving the gambling industry on employment, homelessness, and health. These impacts are not always immediate, however, and can be long-term.

The most obvious consequences of pathological gambling are financial losses and debt. Pathological gambling can devastate a person’s financial portfolio in hours. Some gamblers have lost their life savings in one gambling session. Although these impacts may be more visible for older individuals, younger gamblers may be able to stabilize their debts. In any case, gambling can have severe consequences for a person’s overall well-being.

Impacts on small businesses

The burgeoning casino gambling industry has sparked controversy for its negative impacts on small businesses and the economy. Experts who testified before the U.S. House Committee on Small Business criticized the proliferation of casino-style gambling activities, arguing that they negatively affect social welfare, small businesses, and the economy. Moreover, the authors argue that the proliferation of casino gambling creates an environment where new businesses will not be attracted, creating additional pressure on established businesses.

While economic and social impacts can be measured, the negative impact of gambling on society has been harder to measure. The invisible costs are often overlooked. Hence, the research community has struggled to develop an objective way of measuring the impacts of gambling on society. For this reason, economic costing studies have emerged as a viable alternative. However, this approach is far from ideal. Because of methodological deficiencies, it is difficult to determine the extent of gambling harms.

Impacts on Indian reservations

While many studies have found negative effects of gambling on Indian reservations, some studies show positive effects, such as increased household disposable income and reduction in smoking and alcohol use. These findings are consistent with the fact that casinos in the U.S. have been associated with a decrease in obesity among American Indian children, and a reduction in the prevalence of obesity and diabetes among American Indian adults nationwide. Although more research is needed, tribal members generally support the expansion of gambling.

The economic stimulus of casino development on Indian reservations includes increased job creation and an increase in disposable income. The increased income is used by tribal members to pay rent and bills. However, tribal members have expressed concerns about the negative effects of gambling on the community’s health and well-being. Furthermore, secondhand smoke exposure is a significant health hazard in casino operations. In addition to reducing the health risks associated with gambling, there is no evidence to suggest that casinos have increased the incidence of substance abuse or suicide.

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