The economic impact of casinos is wide-reaching. From influencing employment to regional development, gambling companies are vital for economic development. In the US, for example, a report from 2023 by the American Gaming Association shows that these businesses support 1.75 million jobs.

The same report also showcased that the gaming revenue in 2024 reached $65.83B, and $14.15B was paid in gaming taxes. Our expert team will investigate how casinos impact coastal economies specifically. We will discuss job creation, tourist influx, ecological implications, and more.

Casinos and Coastal Economies

Casinos have the potential to revitalize the local and even regional economies. As stated, they provide employment opportunities for locals and generate substantial tax revenue. Both of these are quite meaningful contributions to the local community.

The money is invested in infrastructure and boosts the capacity and overall quality of the hospitality industry.  With tons of gambling fans, such places are a perfect tourist destination. The growth of coastal casinos and economy go hand in hand, but there are negative impacts, too. As a result, some of the revenue that comes from this sector is allocated to tackle the social costs of gambling. This means supporting help organizations, and recovery centers, as well as creating educational materials for spreading awareness on gambling harm.

The Role of Casinos in Boosting Coastal Tourism

Casinos attract both domestic and international gamblers but they don’t do this by solely relying on gaming entertainment. These are vast resorts that host a slew of events like concerts, races, boxing matches, etc. 

Attracting Tourists Year-Round

The global casino tourism market is booming. The forecast is that it will increase from $34,760M in 2023 to $62,574M by 2032. Even some European countries like Portugal are slowly catching up to certain US states in this department. Many visitors come to the region to enjoy the atmosphere and try their luck in games. They often choose to bet on red portugal, adding a special touch of excitement to their getaway. Players can access the casino online when they just don’t want to leave the beach.

Coastal tourist destinations tend to have guests during summer holidays, but thanks to casinos they get off-season guests as well. This provides a stable cash flow throughout the year. Hotels, restaurants, and other businesses also enjoy the benefits.

Integrated Casino Resorts as All-in-One Destinations

The economic boost from casino resorts in Las Vegas and other gaming hubs is unmatched. However, there is more to them than just the gaming floor. You’ll find entire casino resorts with loads of amenities. They include hotel rooms, restaurants, pools, golf courses, racing horses, big arenas, and other recreational options. This allows them to host various events that attract foreign guests, who aren’t necessarily staying at that exact hotel/resort.

Economic Contributions of Casinos to Local Communities

Casinos and economic development go hand in hand because operators create job opportunities. In addition, a significant portion of gambling revenue is invested in public services.

Job Creation and Employment Opportunities

The gambling industry generates plenty of job opportunities. Here are some examples: 

• Brick-and-mortar casinos need dealers, managers, hospitality staff, and other professionals.
• They also create employment indirectly. Simply put, the demand for other goods and services increases with the demand for casinos. Local businesses like food & beverage, transportation, and retail entertainment can benefit from it.
• Operators also rely on construction companies, gaming manufacturers, and marketing agencies. This means more jobs are created within other sectors.

Increased Revenue for Local Governments

In developed countries, gambling companies pay higher taxes than other businesses. It’s worth pointing out that governments tend to create separate departments to regulate this form of entertainment. In other words, some of that tax revenue needs to sustain those regulatory branches that facilitate a safe gaming environment. But the other portion of the tax revenue goes to healthcare, education, infrastructure, and similar projects. So, public services benefit from the synergy between casinos and local economy.

Enhancing Infrastructure and Regional Development

Historically, casinos have helped revitalize local economies. The presence of casinos can stimulate other innovations in a coastal area.

Boosting Public and Private Investments

Local businesses and casinos often stimulate the development of infrastructure and other businesses. For starters, road construction and maintenance are important to these businesses but everyone else benefits from these things. Huge resorts also have spacious parking lots, and they aren’t there exclusively for the guests.

Revitalizing Underdeveloped Coastal Areas

Atlantic City perfectly demonstrates how casinos and regional economic growth are interconnected. A decade into the first casino opening the city’s cash flow doubled. Entire Southern New Jersey got back on its feet thanks to casinos. They created capital investment, high-paying jobs, and a rise in tourist arrivals. Others could now succeed, from restaurants and lodging to other entertainment industries.

Addressing Challenges of Casino-Driven Growth

Our research team presented the financial benefits of casinos, but we should also discuss some of the social and environmental costs.

Mitigating Environmental Concerns

The emergence of gambling establishments has hurt the coastal ecosystems. We read research on the impact of casino development on the Gulf Coast and similar reports. They reveal detrimental effects on habitat and water quality. However, there is a way to protect the environment with new regulations in place. Casinos are now built with more eco-friendly materials and follow green practices.

Managing Social and Economic Risks

The National Council on Problem Gambling estimates that app. 5M Americans have a gambling addiction. Although the economic benefits of gambling are evident, public health shouldn’t be compromised. Casinos have a huge social responsibility and must promote responsible play. While compliance with regulations is mandatory, there is more they can do to set an example. They can organize charity events, provide resources for vulnerable players, and so on. 

Case Study: A Coastal Success Story

Macao perfectly illustrates the economic opportunities that casinos can provide a city. Since the launch of the gambling market in 1999, its economy has grown from $6.5B to a staggering $55B in 2024. The GDP per person has risen from $15.387 to $66.835, close to that of countries like Denmark.

Being the gaming hub, Macau has attracted around 30M visitors over the past six years. Tourism is big in Macau, so other businesses have had their share of success. The rise of the gambling industry was accompanied by investments in other industries. Businesses like real estate, restaurants, transport, and social services thrive there.