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Legal Gambling: An $80 billion, job-creating stimulus

The gambling industry takes in about $80 billion each year in net gambling revenues (the total amount bet minus winnings paid to gamblers).

What patrons of gambling establishments might not realize is that winnings by the gambling industry amount to taxes imposed on individual gamblers residing in the U.S. This annual fleecing of $80 billion from the American public substantially reduces the effectiveness of the U.S. economy, by being handed over by our elected politicians to the favored few. One gaming organization was granted a license last October to operate the only casino in New York City, worth an estimated $20 billion or more, in exchange for an up-front licensing fee of only $380 million. The casino is expected to throw off $3 million in profits per day.

Government-licensed gambling establishments are profitable because most enjoy a government-granted monopoly position. It is illegal to own or operate a casino without a state license, so casinos have little pressure on them to compete in price, especially when the licensing state takes a percentage of the winnings (generally 50%). The result is a tax on the gambling public, with the gambling profits being divided between the licensing government and the licensed gambling establishment.

Gambling was originally prohibited by law based on principles of religion and/or morality. Today, it limited by governments to prevent competition with the favored few who own and operate the licensed gambling establishments, increasing the establishments’ and the governments’ profits through the prohibition of competition.

Legalized, de-regulated gambling would allow anyone to purchase and operate slot machines, roulette or blackjack machines in their homes or offices. As in any industry, success or failure would be determined by market forces. It would deregulate a significant part of the nation’s economy, and enable gambling to be a competitive tool in developing and promoting businesses and creating jobs.It would also end the political corruption always present when an elected official or body has an opportunity to give a multi-billion dollar license to a single person or company. Gambling clearly is not an activity that should be regulated by the government.

For Hoovers Overview on Gambling CLICK HERE >>

For the New York Times article on New York City’s First Casino CLICK HERE >>