How a Ban on Casinos Worsens the Economic Landscape

Casinos present both good and bad sides, forcing governments to determine the benefit-to-risk ratio of legalising casino gambling. The good side lies in how casinos give individuals an opportunity to hit the jackpot and, for the government, how it helps to promote economic growth. The not-so-good side of casinos includes their potential to cause financial harm to participants. However, there are several interventions casinos can set in place to prevent gambling addiction and potential financial harm. Minimising the risks associated with casino gambling can make casinos a major contributor to a country’s economic development.

This article highlights how a ban on casinos worsens the economic landscape. It also includes considerations on how to leverage casinos for economic growth. 

What Is Casino Gambling?

Casino gambling involves placing money on the line and hoping for a favourable outcome in a game of chance. Many casinos offer welcome bonuses and promotions for new users and existing members. Bonuses can range from welcome offers like 20 free spins no deposit bonuses, to cashback packages for VIP members. 

Casinos have evolved over the years from being physically established entertainment houses to the online space where bettors can engage in online casino gaming. Here’s a brief overview of how the different types of casinos differ from one another:

Feature Land-Based Casinos Online Casinos Mobile Casinos
Description  Land-based physical establishments that offer casino gambling services in addition to amenities like restaurants, bars, and hotels.  Online casinos are websites with featured gambling games that allow players to bet from the comfort of their homes.  Mobile casinos are a variant of online casinos. They’re specially designed for mobile experience, allowing bettors to explore casino games on their smartphones and mobile devices. 
Variety of Games Extensive list of games, including arcade, slots, table games, and live dealer games. Smaller selection of games than land-based casinos have, but there is still a wide variety to choose from. Smaller selection of games than in online casinos, but still a good variety of slots and table games.
Atmosphere Exciting, social, and glamorous atmosphere. Convenient so players can use an internet connection to engage with the casino site from anywhere. Comfortable for players to explore various casino games from anywhere with a smartphone or tablet.
Social Interaction Provides an environment for social experience, as you can interact with other players and dealers. No social interaction or live chat function in live games. No social interaction or live chat function in live games.
Bonuses and Promotions Casinos with physical locations sometimes offer bonuses and promotions to attract new players. Online casinos usually offer more bonuses and promotions than land-based casinos. Mobile casinos often offer bonuses and promotions, particularly for mobile players.

Why Casinos Are Popular

Casinos have been gaining popularity due to the attractive features it offers. Some of the most common reasons why people engage in casino gambling include:

  • A chance to win: The thrill of winning is a top driving force for many casino players. Bettors also get to experience the adrenaline rush that comes with the gameplay.
  • Social interaction: Casinos, especially land-based ones, can be a great place to socialise and relax. Aside from meeting new people, casinos provide a casual setting for players to escape from the stress of everyday life.
  • Economic benefits: Casinos are one of the biggest revenue-generating businesses in the entertainment industry. Casinos hire workers, pay taxes, and attract tourists, leading to more job opportunities, additional tax revenue, and economic growth. 

Consequences of Banning Casinos

One-way countries can strengthen their economic landscape is by encouraging business establishments. Promoting trade activity is key to attracting foreign investments and increasing tax revenue to fund important public service projects. 

According to Statista data, the casino industry generated over 231 billion US dollars in revenue in 2021. It is undeniable that casinos provide significant economic benefits to a country. They thrive by offering a platform where members can play and win, socialise for fun, connect with new people to expand their circle and explore other ancillary services. 

Some of the ancillary services casinos provide include:

  • Hospitality services like hotels, guest houses, shuttle service, and restaurants.
  • Entertainment and retail services like concerts, shows, and shops that sell souvenirs, clothing, and other merchandise.
  • VIP services like access to private lounges, invitations to special events, and other personalised services.

Running a casino, on-site or online, requires investing in the labour market. Casinos hire different categories of people, from dealers, croupiers, security personnel, housekeeping staff, and customer support to marketing managers, social media managers, and technical specialists. Enforcing a casino ban will limit economic development in the following ways: 

Higher Unemployment

Land-based casinos hire several individuals in the local area where it’s based to fill in job roles. This serves as a way to empower local communities and boost local business revenue. Online casinos can hire locally or source team members from the global job market. 

Pulling the plug on casinos’ operations will have an immediate impact on the means of livelihood for many casino workers. This could significantly increase unemployment in the country as laid-off casino workers will populate the unemployed market. 

At the same time, closing down casinos will impact businesses like hotels, restaurants, and retail shops in the casino’s vicinity. These businesses would likely experience a decline in business activity. 

Lower Tax Revenue Generation

Like any other business, casinos pay taxes to the government. The government uses these taxes to support public services, infrastructure projects, and initiatives for local communities. Banning casinos means that tax revenue generation from the casino gambling industry will stop. In addition, the tax returns on businesses that directly or indirectly rely on casinos will decrease.

Reduced tax revenue will affect the government’s budget, limiting financial allocations, increasing the need to create additional revenue sources, raise taxes, or make changes to the fiscal policy. 

Tourism Downturn

Casinos often serve as tourist attractions due to their fun-filled, socially lit, and luxurious environment. They are a great place to hang out for individuals who are the life of the party or who enjoy getting games, comedy shows, and nightlife experience.

The excitement of hitting the jackpot, experiencing live entertainment, and indulging in luxurious amenities make casinos a prime attraction for many tourists. Banning casinos would discourage tourists from visiting, affecting not only casino employees but also those working in tourism-related businesses. This will also reduce the revenue generated from tourism and other related businesses. 

Rise in Illegal Gambling

If casinos are banned, there is more likelihood of players switching to illegal gambling. When gambling is not legal in a region, it can result in higher addiction rates as there’s no enforcement of responsible gambling measures. 

This can harm the well-being of addicted gamblers and can also place increased pressure on their social support systems. Illegal gambling behaviour can also contribute to an increase in criminal behaviour. It’s advisable to provide a legal, safe, and regulated environment for gambling activity to mitigate the negative consequences of illegal gambling. 


Casinos present a relaxing and entertaining experience for many individuals. The thrill of winning is a key attraction for land-based and online casinos. Beyond the benefits casinos provide players, these gambling businesses also serve as a major hub for job opportunities. Casinos contribute to economic growth via their tax returns. 

Banning casinos can worsen the economic landscape of a country due to aftereffects like job losses, reduced tax revenue, lower tourism revenue, and negative impact on complementary businesses

The government should embrace the positive benefits that casinos offer the economy. And they should work on ensuring that casinos adhere to all regulatory and safety measures to protect players.