However, gambling has very serious negative impact on economy. An argument goes that problem gamblers are more likely to lose their means of support by gambling and end up in circumstances such as being homeless. Consequently, this will draw on government expenditure to support welfare and despite large amounts of revenue for the Government generated by gambling, the impact of gambling is overall a drain on the economy (Hoare, 2005). In fact, many gamblers also lose time from jobs by regularly spending more time on gambling rather than working (Productivity Commission Australia, 2010). It has been stated that, total recorded expenditure (losses) in Australia reached just over $19 billion in 2008-09, or an average of $1500 per adult who gambled (Gambling Regulation Amendment [Licensing] Bill, 2011). Furthermore, it has been indicated that, the combination of high rate of poker machine tax and reduced state revenues from other sources means that, state government now heavily rely on gambling taxes (Doughney, 2002, pg.16). It would seem that governments as well as citizens are addicted to gambling.
The casinos in Australia make significant export contribution to Australian economy. It has been stated that, over 1 million international tourists made 2.4 million visits to Australian casinos in 2007-08. Moreover, International tourists who visited casinos spent a total of $4.9 billion during their time in Australia - an average of $4940 per visitor, compared to $2630 by international visitors not visiting casinos (Australasian Casino Association, 2009). Furthermore, it has been stated that, the casino industry has improved Australia's welfare, as measured by social surplus. Social surplus measures benefits to consumers and producers. In addition, research indicates that, casinos in Australia paid 30 per cent of revenues in taxes in 2007-08, totalling $1.2 billion (Australian Gaming Council, 2011/12).
