The economic advantages versus the social costs of gambling

Legalised gambling has experienced resilient growth throughout the USA and other international regions as politicians embrace games to supplement their countries’ economies. Much has been written in the international literature on gambling and gaming and the consequences of social economic and environmental costs and benefits for society and communities. South Africa is currently grappling with this extremely sensitive issue. With the advent of casino licences being awarded many potential candidates are attempting to include these types of issues in applications for casino licences. More research in this area is needed to fully understand the extent of the costs and benefits of gambling and its potential effects on the local, regional and national economy as well as community structures. The article analyses the interaction of social costs and economic benefits of gambling. Each perspective has two dimensions, an internal and external dimension and focuses primarily on the positive and negative effects on the community. It is suggested that this integrated approach may assist decision makers to obtain a general perspective of the intricacies of the internal and external economic and social dimensions of gambling. Provinces, when granting casino licences, may be able to anticipate the broader consequences of gambling on communities.