Negative effects of urban casinos

There has been a lot of talk about casinos.

But did you know that there is a difference between how an urban casino will impact a place or community and how a rural one does. While rural casinos can be good for a community, urban casinos have a lot of negative effects for the community in which it was set up. There have been studies which looked at how a community reacts socially and economically to the presence of an urban casino, and they have showed many negative consequences.

A report released in 2006 by Attorney General Bill Lockyer shows in detail how gaming in California negatively impacts life there, especially when it comes to urban environments. In short, this report showcases negative aspects of urban casinos and confirms some of the worst fears people had about them.

It is clear from the report that when a casino opens in a neighbourhood, it becomes a burden to the local community living in the area. It causes a rise in crime, gambling addiction, traffic congestion, etc. Additionally, an urban casino drains the local economy by drawing money and causing many small businesses to close.

Unlike a rural casino, an urban casino has negative economic results also because it increases costs for law enforcement and infrastructure. There is more problem gambling and an increased cost for traffic.

While gambling in a rural casino draws people from out of state or out of town, urban casinos have over 85% local gamblers, which means that money local people would spend in local businesses is left in the casino.

Just as an example, an analysis of setting up a casino with 5000 slot machines in San Pablo showed that the casino would cause over a hundred million dollars in economic loss, which is not counting the costs of public health, safety or social costs.

Studies which were published in the report state that 4 to 6 years after a casino opens in an urban area, the communities around the casino experience an increase in violent crimes such as rape, murder, but also property crimes such as car theft and burglary.