Estimating Benefits and Costs of Casino Gambling in Iowa, United States

Abstract

This study estimates benefits and costs of casino gambling in the state of Iowa. The results indicate that the combined economic impacts of gambling and its ancillary activities are positive overall for Iowa. The measurable benefit–cost ratio for the state is estimated to be between 1.78:1 and 3.18:1. While the majority of Iowans participate responsibly in casino gambling, this study enumerates a prevalence rate of at-risk, problem, and pathological gamblers combined to be between 7.3% and 8.4% of the adult population. This percentage transforms to significant cost approximations. This study further reveals that statewide computation of net benefits is not universal. The differing benefit–cost ratios across casino counties show that not every region is situated to benefit from gambling. Several factors, such as location, resort nature of the casino facility, monopolistic situations, and competitors from out-of-state need to be taken into consideration to understand the benefit–cost dynamics of casino gambling and the viability of future expansion.

The social, economic, and environmental impacts of casino gambling on the residents of Macau and Singapore

“…In contrast, although some researchers have found that the development of casino gambling has no direct associations with an increase in criminal activities (Janes & Collison, 2004), most studies have shown that casino gambling may be correlated with the following social deviations: domestic violence, divorce, bankruptcy, drug and alcohol abuse, risky or illicit sexual behavior (especially prostitution), and problem gambling (Allcock, 2000;Chhabra, 2007;Harrill & Potts, 2003;Petry, 2003). Additionally, Stokowski (1996) and Long (1996), who studied gaming towns in Colorado and South Dakota, clearly indicated that the rates of criminal activities increased due to the development of casino enterprises in these two locations.…”

The contributions of economics to hospitality literature: A content analysis of hospitality and tourism journals

“…4.2.5. Impact analysis: multiplier effects, cost-benefits, and input-output Considerable research has assessed the impacts of selected sectors of the hospitality industry, particularly those related to MICE, on the local and national economies (e.g., Teigeiro and Díaz, 2014;Hanly, 2012;Zheng and Hung, 2012;Kim et al, 2010;Chhabra, 2007;Dwyer et al, 2005Dwyer et al, , 2006Morgan and Condliffe, 2006;Lee, 2006;Crompton et al, 2001;Grado et al, 1997;Braun and Rungeling, 1992). Among the papers reviewed, 30 studies explored this subject.…”

“…Other studies have also emphasised the importance of impact studies in planning and development aside from its role in gaining the attention and support of stakeholders (Lee, 2006;Morgan and Condliffe, 2006;Crompton et al, 2001). In terms of methodological contributions, the applications of Keynesian-type of multipliers (e.g., Teigeiro and Díaz, 2014;Khan et al, 1995), cost-benefit analysis (Chhabra, 2007;Dwyer and Forsyth, 1998), I-O methods (Kim et al, 2003), occupation-based modelling (Daniels, 2004), and computable general equilibrium methods (Dwyer et al, 2005(Dwyer et al, , 2006 were notable. Morgan and Condliffe (2006) have thoroughly discussed the relative strengths and weaknesses of these methodologies.…”

The social, economic and environmental impacts of casino gaming in Macao: the community leader perspective

“…The majority of respondents said they would not recommend legalized gambling to other communities. Casino gaming has also been associated with domestic violence, divorce, bankruptcy, drug and alcohol abuse, risky or illicit sexual behavior, especially prostitution, and problem gambling (Allock, 2000;Chhabra, 2007;Petry, 2003). Thompson and Schwer (2005) examined the dollar value to social costs of gambling in Southern Nevada, discovering that each of the compulsive gamblers imposed social costs of US$19,711 on others in the community.…”