The Cost-Benefit Analysis of Gambling

Impacts of gambling on society include societal, personal and financial aspects. Financial effects include the direct costs of infrastructure, revenues and changes in value and financial situations that result from gambling. Other types of financial impacts involve the economic activity of the gambling industry, such as the effects on the job market and productivity. Personal and psychological effects can be measured using the Cost-Benefit Analysis of gambling. Listed below are the different types of gambling impacts and the costs and benefits they produce.

Socially acceptable

As a whole, attitudes towards gambling have not changed much over the last two decades. Unlike attitudes toward gay and lesbian relations, legalizing marijuana, and having children outside of marriage, attitudes towards gambling have remained mostly the same. Even in the 1990s, majorities of Americans still found gambling to be socially acceptable, and that trend has continued every year since 1993. But is gambling truly a morally acceptable activity? Let’s look at some examples to understand the issue better.

Cost-benefit analysis

A cost-benefit analysis of gambling is a useful tool to determine whether it benefits society or not. It is a difficult task to measure the true costs and benefits of gambling, since they vary so greatly across time, types, and venues. However, there are some important questions that should be answered in order to develop an effective cost-benefit analysis. The following are three common types of gambling cost-benefit analyses.

Impacts of problem gambling

This study highlights the negative impact of problem gambling on a person’s partner and family life. The negative effects of gambling on a person’s partner and family are extensive, ranging from emotional, physical, and relationship impact. They are summarized in Table 1. These impacts are often interrelated and compounding, affecting an individual’s ability to function in many aspects of life. Further research is needed to understand these impacts in greater detail.

Costs to individuals

The literature on the costs of pathological gambling has a mixed record. Although some studies have suggested a high economic cost, the majority of them do not account for the costs of psychological and social problems associated with gambling. The majority of studies also focus on the individual’s financial and interpersonal problems. The problem is further compounded by the fact that most of these studies are small samples with no control groups. In this article, we discuss the cost of pathological gambling to individuals.

Costs to communities

There are several costs of gambling to communities. The economic costs of gambling are often associated with unemployment, health care, and environmental effects. Gambling-related illnesses also cause higher crime and require more public infrastructure. Pathological gambling can increase the cost of credit in the entire economy and contribute to bankruptcy. These costs are borne by the gamblers themselves, their families, and the community as a whole. In addition to the financial and social costs associated with gambling, there are also indirect regulatory costs associated with the industry.

Costs to organizations

The costs of gambling are significant for individuals, communities, and organizations on a variety of levels. While the individual level impacts are generally non-monetary, the societal or community level costs are monetary, and include the general cost/benefit of gambling, as well as the effects on the economy. The social costs of gambling include the damage and loss to the social fabric, including job losses and diminished productivity, as well as health costs and benefits.