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Letter
to the Business Times, 1 Apr 04
Beware casinos' social costs
I REFER to the report, 'A S'pore casino could create up to 1,000 jobs'
(BT, March 31).
I don't doubt that a casino would generate considerable economic activity,
tax revenue, jobs and other spin-offs. But what about the hidden costs?
In the US, there have been many studies on casinos. And all point
to one thing - the social costs are high. Crime, family violence,
child abuse, alcoholism, prostitution, bankruptcy, loan sharking and
suicide rates all go up with the introduction of casinos.
The neighbourhoods around casinos tend to be poorer than average and
have more social problems. The beneficiaries are casino and hotel
operators, while social welfare organisations and law enforcement
agencies pay the price.
A University of Illinois study estimated that for every dollar of
gambling revenue, the state had to spend three dollars in criminal
justice and social costs. This isn't surprising, as gambling is a
zero sum game.
Singapore probably believes it can have the benefits of a casino without
the social costs. It intends to limit admission to people of a certain
economic class. Those who don't belong to this class will have to
use casinos in the region or floating casinos with less stringent
entry requirements. In a manner of speaking, this splits the social
cost between the region and Singapore.
The Economist once published the obituary of Leonard Tose, a successful
entrepreneur who owned a trucking business. A compulsive gambler,
he is estimated to have lost US$40 million playing blackjack. In the
end, he lost his business, his home, his cars and his family.
The social cost of gambling for the well-to-do is no less devastating.
They just have richer friends to borrow from. Alternatively, they
can abuse the trust of employers by stealing.
Alan Lim Eng Cheng
Singapore |
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