Effects of Gambling on Economy

[AmericanAirlines]

Hi Adios,
They sell lottery tickets in Colorado and have casinos as well.

Interesting legal twist to it though. No +EV Video Poker or other games are allowed. "Presumably" because the gov't doesn't want to lose the potential tax revenues. So much for Gov't being on the little guy's side on that one.

Your mistake is all those "presumes".

Ok let's say I presume as you do, that market prices reflect market wisdom. And the market price represents all that is known at that point in time. A common statement about securities markets (which I think has been shown to be false as of late... Enron etc.)

Every time I say, "The presence of blacks causes property values to drop" Andyfox says... "Oh that's not the blacks fault... that's the fault of people like you! (meaning me)"

So which is it? The all knowing market is correct? Blacks make an area less desirable? Or is market economics wrong?

Sincerely,
AA

P.S. I tend to think everyone in this forum should see game with -EV's as not something to engage in. So why would anyone in here see casinos that spread such games as an economic positive rather than a cash siphon?

Casinos that spead poker on the other hand serve the same role as the NYSE. Providing a place to engage in the activity where some oversight and structure are in place. Granted I think the NYSE is -EV for a lot of people and thus more like a casino that doesn't spread +EV games.

But, in the end I'd not play "back room" poker. To much chance of problems IMHO.

[img]/images/graemlins/frown.gif[/img]

[Diplomat]

One argument that often comes up in these debates, but what I think is missing here, is the potential damage that gambling can have on the society that it exists within. Although not always true, some have argued that the introduction of a casino into a given community can be connected with a rise in particular types of illegal activities, such as prostitution and drug use.

If this is true, there may be a negative impact on the economy of a given community because of these side effects, even if the math about whether or not gambling disrupts a particular economy shows no disruption to that economy. Just a thought.

Oh, and about lawyers and doctors not gambling -- we most certianly do. [img]/images/graemlins/laugh.gif[/img]

-Diplomat

[clovenhoof]

The economy (like us lawyers) is amoral. It does not distinguish between a sale of a $10 book, the placing of a $10 bet, or the purchase of a $10 rock of crack, except to the extent that the distribution of the underlying costs differs.

The introduction of casinos and other gambling establishments (as well as any other business that leads to big fluctuations in cash transfers) ALWAYS lead to a rise in activities such as prostitution and the sale of drugs, legal and illegal. But as far as the economy is concerned, that's a good thing. However what is good for the economy is often not good for society.

Consider a very extreme example: a casino owned by a conglomerate of sociopaths. (No, that's not the extreme part.) Let's say they adopt a policy of murdering a limited number of well-off middle-aged middle-managers in their sleep. The net effect would be a boon for the economy. The death of anybody results in the expenditure of money for burial, etc., that otherwise would have waited until the guy died at his expected age of 75 (or whatever it is). The death of somebody with assets results in a distribution of those assets, usually to people who need to spend at least some of the new wealth that previously was being hoarded. The premature (and unexpected) removal of an employee from the workplace requires the company to allocate resources to retraining and replacement with no corresponding output, which benefits the economy.

One might even go so far as to argue that things such as drunk driving and the elimination of any and all gun controls are really great for the economy, precisely because of their particular toll on society. As attractive as that may be to our politicians, however, I don't think we have much to worry about -- even THEY realize that killing the electorate has a negative EV at election time.

'hoof

[brad]

do u think the state lotteries are good for the(ir) economy?