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Casino Gambling: A Look At Its Effects



             First, casino gambling needs to be limited to where they are located because of its negative effects on the economics. Because most casinos contain hotels, restaurants and shopping along with the gambling all under one roof, they have pushed away local businesses from opening in casino towns. Casinos offer low priced buffets to keep you in the casino so that you are constantly in the gambling atmosphere. For example, Deadwood, South Dakota was a small town with nine stores in the downtown area before the casino arrived. Within one year after the building of the casino, all nine businesses had closed their doors. The introduction of casinos into a community creates what scholars call "cannibalization". Real estate speculation drives values on land sky high on Main St.; many businesses willing to sell out to the first buyer. Then when casinos start raking in cash hand over fist, the hold-outs sell or convert to a casino (Manning 107). In many of the towns, casinos were supposed to bring a wealthy tax revenue with them. However, it seems that only the casinos are receiving any tax benefits. One town was promised lower property taxes when they voted in allowing a casino into their town. What they got was property tax increases every year since the casino has been in operation. The casinos have not only been effective in eliminating local competition, but they have been effective in evading taxes. For example, the free drinks that you get while you are playing and the free complimentary meal that the casino gives you are both tax deductible to the casino's profits. .
             Casinos pose negative economics to new areas because they really do nothing to increase local workforce and decrease unemployment as proponents suggest. For instance, the jobs at the casinos are not going to the locals that are unemployed and seeking for a job. The job is going to someone who moved to Las Vegas.


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