The Gambling Industry
Industry Growth
The worldwide gambling industry has become a pervasive part of 20th century
entertainment. The United States (U.S.) has attracted people from
around the world to its shiny and glitzy casino resorts. Industry
statistics for the gambling marketplace are staggering. The U.S.
gambling industry has grown from existing only in the state of Nevada to
becoming legalized in 24 states. Recent figures peg the market size
of monies wagered on all types of legal gambling at $250B. In addition,
the number of American households in which at least one person has visited
a casino doubled from 43 million people in 1990 to 92M people in 1993.
Major Players: Commercial and Government
Major players in the casino industry include Trump Hotels & Casinos,
Bally’s, and Harrah’s. Trump Hotels & Casinos generated a whopping
$1.5B in 1997 annual profits. According to Hoovers,
in 1996, total gambling industry profits, consisting primarily of casino
gambling, racetrack betting, state lotteries, and Indian reservation gambling,
were approximately $49B on $500B wagered.
State governments are also major stakeholders in this industry.
States that have legalized gambling have collected significant amounts
of taxes from local gambling businesses. For example:
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Illinois received about $3.376M in tax revenues from riverboat gambling
casinos in 1997. (Copley News Service, November 10, 1997)
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In Texas, $1.9B in tax revenues from gaming, gambling and other commercial
activities of Indian tribes is estimated to be generated over the next
five years if this tax legislation is passed. (U.P.I., June 9, 1997)
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New York State could generate as much as $685M annually in tax revenues
by allowing casino gambling in several upstate communities,
according to a recently released report by the New York State Task Force.
(The Bond Buyer, September 16, 1996)
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During 1996, Connecticut's state coffers were filled with $130M- 25% of
slot machine revenues. (The Bond Buyer, October 28, 1996)
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In addition, gambling has resulted in revenues due to increased tourism
and even improved standards of living in some cases. Casinos have
provided employment for local inhabitants. Some businesses near casinos,
ranging from airlines to roadside diners, have prospered from new business.
Some argue even that in particular low-income areas, the number of welfare
recipients has decreased and consumer spending has increased because of
nearby casino businesses.
Issues
Many controversial issues have developed concerning the social costs and
benefits associated with gambling. Certainly, on one hand, the growth
of the gambling industry has fueled the growth of an industry and generated
significant local revenue. On the other hand, gambling has commonly
been associated prostitution, poverty, and drug and alcohol addition.
While the public has been split into two different sides, the debate has
resurfaced with equal, if not more rigor, with the evolution of Internet
gambling.
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15.963 Class Web Site
Internet Gambling Information
Directories of On-Line
Casinos
If you have comments or suggestions, email me at jcliffor@mit.edu