The Negative Effects of Gambling
Gambling has many impacts on society. The general impact is that it takes up valuable leisure time and can interfere with other activities. The negative effects, which occur when an individual has a gambling problem, are much more serious. Such negative impacts can materialize on a personal, interpersonal, community, and societal level. For example, a person can go bankrupt while gambling, which can affect family finances and create social care costs. Further, a person can be forced to give up other responsibilities because of financial difficulties.
The negative effects of gambling can have a significant impact on an employee’s performance and can be devastating to the employer’s bottom line. Absenteeism, decreased productivity, and even criminal activity can be costly for a business. In Finland, nearly 40% of problem gamblers reported poor performance at work, fewer hours, and even missing days of work. While these negative effects of gambling can have a profound impact on a person’s quality of life, they are not sufficient to justify the negative effects of gambling.
Impacts on society
There are numerous negative consequences associated with excessive gambling, ranging from the social costs to crime and lost productivity. It has also been shown that people who gamble frequently have poorer work ethics and are less likely to be responsible members of society. Additionally, it costs society more money than it brings in. In South Africa, more than half of all households spend more money on gambling than on other essential items like food and utilities. These effects are particularly evident among the poor, who spend more of their disposable income on gambling.
Legislation regulating gambling
The European Union (EU) regulates the online gambling market in different ways. Each member state determines the appropriate level of protection, and then develops the rules governing the gaming industry. Gambling activity may also be related to crime or fraud. As such, it can have serious implications for consumers and the public order. To be considered proportionate, the regulation must also be compatible with ECJ caselaw. The aim of the regulation should be to protect consumers and prevent gambling-related harm.
Economic cost-benefit analysis
Economists may consider the benefits and costs of expanding casinos, but there are also negative impacts. The substitution effect of a casino can lower local retail sales. The impact on employment is often not quantified. In the absence of data, economic impact studies often underestimate the costs of gambling. This is because they fail to account for the intangible effects, such as the displacement of local goods and services and lost jobs.
Impacts on small businesses
Gross impact studies of gambling often focus on a single aspect of the economic impact. They don’t claim to be comprehensive or provide a balanced view of gambling’s effects. Instead, they place much of the focus on the benefits of gambling, and not so much on the costs. This results in a crude and simplistic accounting of the effects of gambling. Moreover, they often overlook distinctions between the costs and benefits of gambling, and tangible and intangible effects, as well as the impact of different types of expenditure.