The Casino Effect on the Local Economy

A casino is a gambling establishment that offers chances to win money by playing games of chance or skill. Slot machines, blackjack, roulette, craps, baccarat, and other gambling games provide the billions of dollars in profits that casinos rake in every year. Musical shows, lighted fountains, and lavish hotels may draw the public to a casino, but most of the revenue comes from gambling.

In communities with casinos, employment rates increase both within the casino and in other local businesses that cater to casino visitors, such as restaurants and tourist attractions. These increases help boost the overall economy of a given region.

Local officials and citizens often point to a decreased unemployment rate near a casino as evidence that the casino has improved local employment. However, the original, less skilled population of a casino’s location is unlikely to find work at the casino; most of this labor will come from outside of the community.

Typically, casinos attract older people with above-average incomes. According to a 2005 study by Roper Reports GfK NOP and the U.S. Gaming Panel by TNS, about 23% of Americans had visited a casino in the previous year. These adults, who tend to have more leisure time and disposable income than younger people, make up the majority of casino gamblers.

High rollers, or gamblers who wager a large amount of money, are important to casino profitability. They are encouraged to gamble in private rooms, away from the main casino floor, and to receive free spectacular entertainment, luxury suites, reduced-fare transportation, and other inducements. These high-stakes gamblers give the casino a virtual guarantee of gross profit, which it can use to offset losses on other bets.