The Negative Impacts Of Legalized Gambling On Businesses

Under good economic conditions, but particularly during recessionary periods, there is usually intense competition between states to attract new businesses. New businesses improve local and state economies by providing an influx of investment dollars, jobs, and new tax revenues. As states and municipalities attempted to boost economic growth during the recessionary U.S. economy of 1991-1992, the legalized gambling organizations in Nevada and in Atlantic City, New Jersey, saw the perfect opportunity to expand their organizations into previously unexploited regions. Notwithstanding contrary positions argued by legalized gambling interests in their efforts to gain and exploit new population bases, and with rare exceptions, legalized gambling activities do not generate long-term or even mid-term strategic economic development or tax revenues. Any profit generated by legalized gambling almost invariably comes from some consumer's pre-existing funds, and the resources devoted to gambling are taken from other activities. In fact, legalized gambling interests have both promoted and discouraged legalized gambling when necessary to further their objectives. In one instance, major legalized gambling organizations conducted public relations campaigns arguing that their casinos would create economic development, jobs, and tax revenues in Illinois. However, in order to undercut their competition in California and preserve their own gambling operations in Nevada, some of these same organizations simultaneously conducted public relations campaigns in California arguing just the opposite.published or submitted for publicationis peer reviewe