Several different types of gambling exist. These are discussed in this article, as well as their socioeconomic effects and financial harms. In addition, the economic cost-benefit analysis (CBA) is discussed, as well as the types of gambling and the associated social and psychological effects. Continuing onward, this article will discuss the impact of gambling on societal development and problem gambling. While gambling has its positive and negative impacts, it is important to recognize the negative impacts of this activity as well.
Socioeconomic impacts of gambling
The socioeconomic impacts of gambling have many facets. While gambling is often seen as a leisure activity, it has the potential to disrupt many other areas of a person’s life. Problem gambling is a serious issue that can have devastating consequences for individuals, families, communities, and society. Individuals with gambling problems often go bankrupt, causing a financial burden on their families and creating social care costs. There are numerous ways to measure gambling’s impacts.
Types of gambling
The various forms of gambling are sports betting, lottery, and raffles. Many types of gambling are illegal. Some are restricted to specific locations, while others can be conducted online. All types of gambling are growing in popularity. Here are some examples of legal gambling:
Financial harms of gambling
Financial harms of gambling can be categorized in three general classes: individual, interpersonal, and societal. Individual level costs can be non-monetary, and can be seen in economic activity, tourism, and changes in values and financial circumstances. Social level costs can be visible, as well as include changes to the quality of life and individual health. Lastly, societal level costs can be monetary, resulting from the overall cost/benefit of gambling on society as a whole.
Economic cost-benefit analysis (CBA) of gambling
An economic cost-benefit analysis (CBA) relates the costs and benefits of gambling activities for the economy. The impacts of gambling on an economy are not solely related to the gambling industry, but also affect consumers, businesses, and government revenue. These impacts are often considered external. This study uses an expanded set of impacts to examine the economics of gambling, including income tax revenues and consumer surplus, as well as social and environmental costs and benefits.
Positive effects of gambling on physical and mental health
The physical and mental health impacts of gambling have been studied on a variety of levels. These effects range from personal to social and can affect individuals, relationships, and communities. Problem gamblers are particularly affected, as they have higher risk factors for developing alcohol and substance use disorders and obesity. Other studies have found that gambling and substance use are often co-occurring disorders. For example, 28 percent of problem gamblers have a gambling disorder.
Negative effects of gambling on employment
The negative effects of gambling on employment can have severe consequences for an employee’s job performance and employer’s bottom line. The costs of absenteeism, decreased productivity, and impaired working relationships can lead to the termination of an employee’s employment. Approximately 40% of problem gamblers in Finland report that gambling interferes with their job performance. Furthermore, they report fewer hours worked and missing days from work to gamble. The problem is so pervasive that it may lead to criminal acts at work.