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Jiuao Li

Mikayla Schutte

ENGLISH 1110.01

11 November 14 2024

The Benefits to Society of Legalized Gambling

Most of us hear the word “gambling” accompanied by various warnings that portray

gambling as a bad habit. Unfortunately, it is human nature to gamble. Data compiled by the

American Gaming Association shows that the combined revenue from gambling reached

$17.67 billion for the first quarter of 2024, making it the highest-grossing quarter ever for the

U.S. commercial gaming sector (AGA).

Fortunately, the gambling industry can be beneficial for our society. While there are

potential criminal activities the gambling industry may produce, it can bring far more benefits

to society than harm. The gambling industry can generate additional tax revenue, create more

job opportunities and promote tourism. The first step to making these benefits a reality is to

legalize gambling.

New research by the AGA shows that direct tax revenue from commercial gaming

reached $53 billion annually in the US (AGA). This tax revenue can support state and local

governments through the legalization of various types of gambling, such as traditional casino

games, sports betting, and iGaming. Tax revenue not only symbolizes a significant amount of

money but also facilitates the management of the gaming industry and protects consumers.

The potential risks of consumer harm in the gaming industry underscore the government's

responsibility to safeguard consumers, with taxation being a key policy tool for achieving this

(Günay). In contrast, illegal gambling poses significant risks to consumers. Illegal gaming

operators offer no guarantee of fair odds, no protections, and no gaming measures. When the

illegal operators run away with money, consumers become victims. It is one kind of possible
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harm to consumer of gambling industry individually. Meanwhile, the supporter of illegal

gambling industry who run casinos and online gambling websites do not need to pay taxes. It

means the money criminals earns form illegal gambling industry can be a fund for anything

that can harm society. The worse possibility is the potential contending between legal

gambling industry and illegal gambling industry. This kind of competition can make

disadvantages to both contenders. Under the possible weakness and risk, the flourishment of

legal gambling industry cannot do without the suppress illegal gambling industry.

From a more detailed aspect, how illegal entrepreneurs fix soccer matches in China. This

was a social phenomenon which directly reflect the hazard of illegal gambling industry.

China's nationwide crackdown on match-fixing and gambling in the professional soccer

league has revealed that these changes coincide with bribes paid by influential individuals—

specifically, soccer officials—and are organized through highly effective strategies to address

the pervasive corruption within the sport in China. These networks of connections, centered

around senior government officials, employ well-organized methods for transferring illicit

benefits. Soccer officials often "instruct match referees to achieve a certain result, do so to

"ensure that a team wins to avoid relegation to a lower league. to assist these officials. For

instance, the Shanghai Shenhua Soccer Club sought to secure its domestic league title in 2003

by enlisting Guo Feng, an influential soccer manager, to act as an intermediary with Zhang

Jianqiang, then a senior official of the Chinese Football Association, who had strong

connections to the Golden Whistle" network. In a pivotal match, Zhang's influence and status

within this network swayed the "Golden Whistle in favor of Shenhua. With the assistance of

Zhang and Lu, Shanghai Shenhua ultimately won the league title in 2003. In return, Zhang

and Lu received commissions totaling RMB 700,000 (AU $130,000). (Wang, 2016) The

occurrence of these incidents caused a great sensation at that time, such illegal manipulation

of the game to gain profits not only seriously damaged the interests of people involved in
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gambling, but also seriously damaged the interests and credibility of the country. And that's

just a fraction of the damage that illegal gambling can do.

In 2022, the gaming industry supported 1.8 million jobs in the US (AGA). The

legalization of the gaming industry directly created these job opportunities. The legal gaming

industry is expected to drive the demand for these jobs in the future due to the industry's

continuous growth. Traditional casinos are the primary venues that offer a wide range of job

opportunities. Casinos provide various types of jobs, including those at the tables, running the

tables, security positions, assisting with sports betting, and ensuring fair play in the gambling

areas. Apart from roles directly related to gambling, casinos also offer numerous hospitalities

and entertainment positions, such as cocktail servers, bartenders, restaurant staff, managers,

performers, and wait staff. Legal services, sales, marketing, and maintenance are also fields

that provide employment opportunities within casinos. Since casinos often include hotels,

hotel jobs are also prevalent. According to the report, the U.S. gaming industry directly

employs more than 700,000 people in the United States. The gambling industry provides

more direct employment opportunities than the air transportation, postal services, or motion

picture and video industries. Direct casino employment accounts for one in 33 jobs in leisure

and hospitality. A recent study by the American Gaming Association showed that Americans

widely recognize the economic benefits of gambling, with 71% of adults saying that casino

gaming has a positive impact on the U.S. economy. Total gaming-supported employment (1.8

million jobs) is equivalent to one in 118 non-farm jobs in the U.S., more than the non-farm

jobs in 18 states.

Macao is the only region in China where the gaming industry is legal. In the first quarter

of 2024, passenger arrivals in Macao increased by 79.4% year-on-year. The majority of

incoming passengers are from the Chinese mainland, accounting for 70.9% with a total of

6,291,912 people (DESC). Catering and accommodation service are the primary expenditures
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for passengers. The significant consumption is closely linked to the appeal of the gambling

industry to China's mainland and neighboring countries. When the Macao Special

Administrative Region (SAR) Government was established in 1999, the economy was still

grappling with the aftermath of the Asian financial crisis. Both GDP and per capita GDP were

growing at a sluggish pace. The decision to end the casino gambling monopoly triggered

exponential growth in GDP and per capita GDP, which rose from 1.5% and 0.7%,

respectively, in the previous year to 10.3% and 9.2%, respectively, in 2002. This robust

growth momentum has continued ever since, propelling Macao's per capita GDP to the

highest rank in Asia by 2007 (Macao Daily, April 3, 2008). Even in 2008, when the global

economy was severely impacted by the financial crisis, Macao's economy still recorded a

10.7% increase in per capita GDP. It was not until 2009 that the growth rate declined by

1.6%, a decrease that remains negligible compared to the performance of most Western

economies.

The most significant hazard in the gaming industry is the potential for criminal activities.

One notable example is the involvement of organized crime, particularly the mafia, during the

last century. They exerted control over sports events for betting purposes, engaged in usury at

casinos, and dominated the gambling market through murder, extortion, kidnapping, and

other illegal means. In response to these issues, Nevada introduced the in the 1960s. The

Black Book is a list of individuals who are banned from casinos in the state due to their

reputed connections to organized crime, which poses a threat to the integrity of the state’s

gambling industry. Most individuals listed in the book are members of Mafia. Inclusion in the

Black Book is determined by the state's gaming regulators, who are appointed by the

governor. These regulators serve full-time on the state Gaming Control Board and part-time

on the Nevada Gaming Commission. Over the thirty-five years since the book's inception,

thirty-eight names have been added. Individuals are included based on one of the following
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criteria: 1) a prior felony conviction for a crime involving moral turpitude, 2) violation of or

conspiracy to violate gaming laws, 3) a "notorious or unsavory reputation that would

adversely affect public confidence and trust in the gaming industry as being free from

criminal and corrupt elements," and 4) previous exclusion from licensed gaming activities in

other states. In simple terms, this is an effort to keep organized crime out of casinos. Officials

add the names of known crime figures to the book, and any individual listed in the book

commits a crime simply by entering a casino. The casino also commits an offense if it fails to

report any gambling activity involving a book member. This policy has been highly effective

in disassociating criminal organizations from casinos and subsequently replacing them with

legitimate enterprises (McNamee). This distinction highlights a significant difference

between the legal and illegal gambling industries. The legal gambling industry is easier to

regulate, even in terms of the crime that may arise from it, because the entire system is

transparent and manageable. Government officials and relevant managers can implement

policies that align the development of the legal gambling industry with their objectives and

the interests of citizens.

Gambling addiction is a recognized disorder. It is an addictive disorder which is

indicated by DSM-5. Patients with gambling addiction tend to gamble more as the duration of

symptoms increases to pursue more satisfaction. They also find it hard to quit the symptoms

once they are addicted to gambling (Sohn, 2023). People with low incomes are more likely to

be harmed by gambling addiction because they are more likely to win lots of money when

they gamble, as mentioned by psychologist Shane Kraus, PhD, director of the Behavioral

Addictions Lab at the University of Nevada, Las Vegas. Young people are another vulnerable

group. More than 5% of teenage gamblers suffer from gambling addiction (Sohn).

However, it is still uncertain whether the development of the gaming industry will

exacerbate the issue of gambling addiction. “Scientists have yet to document a consistent rise
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in the rates of gambling problems in recent years, said Jeffrey Derevensky, PhD, a

psychologist and director of the International Centre for Youth Gambling Problems and High-

Risk Behaviours at McGill University" (Sohn). It is a positive trend for the gaming industry's

growth and research on gambling problems. There is no justification for halting or slowing

down the industry's progress due to a potential minor risk. Moreover, taking advantage of the

current low prevalence of gambling addiction, scientists may be able to discover a medical

solution for it before it significantly impacts society. The gaming industry should not have to

compromise its growth to protect individuals with gambling addiction, especially when it is

not definitively proven that industry development directly worsens the issue.

Legalizing gambling can benefit society by generating significant tax revenue, creating

more job opportunities, and boosting tourism. The potential harm can be minimized through

effective policies. A relevant policy was introduced 64 years ago and has been proven

successful. The gaming industry is expected to continue evolving in the future, with its global

impact growing annually. This industry will inevitably progress. Therefore, the key to

regulating the gaming industry lies in guiding and supporting it through rational policies and

strict management. Nations and citizens should have confidence in turning human

weaknesses into societal assets.

Work Cited

American Gaming Association (AGA). Economic impact. (n.d.).2023

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Industry-Economic-Report.pdf

American Gaming Association (AGA). Q1 2024 COMMERCIAL GAMING REVENUE

TRACKER. 2024.

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T.pdf

American Gaming Association (AGA). State of the States 2024 THE AGA ANALYSIS OF

THE COMMERCIAL CASINO INDUSTRY. 2024.

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the-States-2024.pdf

DESC. (n.d.-a). TOURISM STATISTICS 2nd QUARTER 2023. 2023

https://www.dsec.gov.mo/getAttachment/fd953dfe-e9bb-4dcd-8451-6f21a4bc

cfa1/E_TUR_FR_2023_Q2.aspx

Emily Sohn. How gambling affects the brain and who is most vulnerable to addiction. July 1,

2023

https://www.apa.org/monitor/2023/07/how-gambling-affects-the-brain

Günay, H. F. Taxation as a Policy Instrument For Social and Economic Effects of Gambling.

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McNamee, G. Lewis. Las Vegas. Encyclopedia Britannica. 2024, July 8

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Wang, P., & Antonopoulos, G. A. (2016). Organized crime and illegal gambling: How do

illegal gambling enterprises respond to the challenges posed by their illegality in China?

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