Pros and Cons of Building a Casino in Your Neighborhood

Pros New Jobs Entertainment Expand Tourism parcel to Community Contribution to Charitable Organizations Lower taxes for Residents Tax Revenues Higher Wages Higher Property Value Extends Visitors Stay in Area Money put back into topical anesthetic Economy Adds to a City Attracts People Traffic of People Better Known Cons Street Crime Prostitution Takes from Local businesses No New Businesses Erosion of Work Ethic Pathological Gamblers Increased Bankruptcy Rates Preys on Poor and Elderly Lost Productivity Traffic over-crowding Entry Level Jobs Low Paying legitimateity Money non re-spent in Local Economy No Taxes Environmental Effects Three meaty conditions must be simultaneously satisfied if a particular cost is to be classified as a private cost 1. Gamblers must be fully informed 2. Gamblers must be rational 3. Gamblers must be required to bear the total costs of their caper If any one of these conditions fails to be satisfied, an element of social c osts exists. For example, if gamblers cease work in order to gamble and gamble away their family assets, leaving their families to claim social welf be benefits, the delay of the community is bearing social casts.The gamblers may carry mad rational decisions in that they know that the community whollyow for provide a safety net. They exponent have made different decisions had the safety net not existed. One distinction that must be made is between real and pecuniary costs. Real costs cost a withdrawal of resources from other potential uses- they represent a subtraction from societys total welfare. Pecuniary costs represent costs borne by some members of the community but which are exactly matched by benefits received by others. For example, assume that romp increases levels of corruption in the globe and private sectors.Corruption tush have both pecuniary and real effects. It can produce a redistribution of income, which is a pecuniary effect. It can also produce a real det erioration in efficiency as productive resources are allocated jibe to sub-optimal, non- frugal criteria. Generally speaking, when identifying the real costs, we can classify the costs and benefits on gambling into two categories- tangible and intangible. Tangible costs are costs that can be nurtured in the marketplace. Any reduction in these costs will yield resources that will become available to the community for consumption or investment purposes.Intangible costs are costs that cannot be readily valued in the marketplace and which, when reduced, will not yield resources to the community for consumption or investment purposes. Examples of both tangible and intangible costs of gambling Tangible Productionreduced on the job productivity Reduced workforce Reduced unpaid household services Heath and Counselingpsychological treatment of gamblers Treatment of families of gamblers Treatment of victims of crime attributable to gambling CrimePolicing Judicial systems Penal systems Insur ance administration Regulationregulation supervision Regulatory programs ResearchEvaluationDevelopment Welfare PreventionCrime prevention Intangible Loss of life Suffering Quality of life ethnic impacts Stress to crime victims Stress to gamblers and others The purpose of this paper is to assess the economic impacts of Casino gambling within a community. The Seneca Indian Tribe opened a temporary cassino on its land in Buffalo after federal approval, to satisfy its agreement with the state. The majority of the community are now tour their heads and not showing interest for the cassino. They believe the operations will adversely affect the economic and social environment of the already struggling city.The community is aspect for other sources of revenue and find issue ways how to clean up the streets. Opportunity cost is any good or service that has value of all the other goods or services that we must give up in order to produce it. We all use the idea of opportunity cost in ou r everyday lives. The Casino in downtown Buffalo will drain notes from the city and local businesses will be affected by the advancements of the cassino. The casino is looking to expand to a high class resort that will have room availability and food/beverage.The negative aspect is that the people that lay the casino will not leave to go out to local restaurants or hotels and spend dollars in the all ready weakened Buffalo prudence. The casino will provide jobs, the jobs will be at a lower pay and with few, if any, of the protections against displacement. A downtown casino would severely devastate and/or draw out legion(predicate) of Buffalos restaurants, hotels and nightlife in the area. Many studies have been performed on Casino gambling and the economic impacts. Many economists have researched how the casinos do not contribute to local businesses and negative reputation within communities.Casinos are not helping the economy but only themselves. It is not appropriate for Buf falo to have to struggle anymore due to Seneca Indians and their eagerness to start up something is bound to fail. In New York State our way to protect the environment of nature and humanity. Indian casinos are also exempt from New York health codes, they can permit smoking. Employees in casinos have none of New Yorks health protections, and even if they did they cant sue in New York courts, so they have nowhere to go if they are injured by inhaling second hand smoke.The people purchase the tax-free tobacco are not even contributing to the state budget, part of which in part pays for the huge cost of tobacco smoke and leads many to develop lung disease. Questions, discussions, and opinions are on a rise to whether a new casino should be built in Buffalo, New York. If we ask what benefits, or what economic increment will this casino bring to the community there would not be enough answers as to compare to the negative effects it will very bring.This essay will discuss the economic impacts, social and opportunity costs brought by casinos from economist researchers who have showed significant points to why casino worsen the economy and making it harder for local businesses and employment opportunity. To answer the question, What is economic development? Dr. Grinols professor of economics at Baylor University and author of Gambling in America cost and benefits, 2004 said, When individuals compact productive activity, they engage in the creation of goods and service that provide greater welfare or satisfaction than the inputs used. (Grinols 2004).Economic development is the creation of greater value by society from its available resources which means greater income and wealth, which lead to greater utility for members of society (Grinols 2004). Dr. Grinols claims when a casino hires a hundred new employees they are like to the same hundred loss jobs at other businesses, and casinos revenues are matched by reduced revenues at those other businesses, which lead s to no economic development because greater value is not created. Casinos not only create economic loss, they intensify the problem by taking the money they get from the casinos out of he local communities (Day 2008). The casino industry do not re-spent their profits into the local economy. Statistics show thirty five to eighty seven percent of the profits are sent out of state in the form of vendor contracts, capital investment dividends and parent company profit sharing. The money does not get reinvested into the community, which is the foundation of economic development. In defense to the negative impact brought by casinos, the gambling industry tries to prove that casinos create job opportunity as a measure of economic development however Dr.Grinols argues that job creation is not an indicator of economic development and that local residents may not benefit at all from job creation. He goes on to say jobs are neither necessary nor sufficient for economic development. Secondly h e argued, A significant amount of promotional material claims that casinos reducing unemployment, but most importantly because casinos represent a negative and not a positive economic development, in the long run the number of jobs are drastically decreasing and not created.In 2007 professor Frederic H. Murphy of Temple University proved in his economic impact analysis of expanded gambling in Philadelphia, because money was leaving the area and not staying in the local economy there will be a loss of over four thousand jobs. Dr. Grinols claims according to research not sponsored by the casino industry, commercial casinos nationwide generated job loss in more than forty two percent of the counties with casinos.