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Gambling Think Simple Plans and Win Big

Do you know that it doesn’t really need the most complex of plans for you to become a professional player in gambling? You can use some of the simple plans and still be able to win big. Yes, various games in gambling have different set […]

Free Casino Games Excellent Training for Newbie

It is a frustrating experience for a newbie casino player to participate in an actual casino game and found themselves lost despite their efforts of reading pertinent information on how that particular game is played. The reality dawns them with fact that reading the rules […]

The Economics Of The Gambling Business

The subject of gambling is much discussed in the contemporary popular press and literature. The level of interest is especially keen because of the apparent worldwide trend toward the legalization of various heretofore illegal forms of wagering.

Social scientists offer various explanations for this trend, related primarily to the individual’s desire for entertainment, excitement, and risk or to the growing acceptance of the libertarian advocacy of personal as well as economic freedom. While this trend certainly has implications for the social, psychological, and economic fabric of society, it is the latter consideration that has been the major force behind legalization. State and local governments in the United States and abroad are attracted to legalization the lure of revenues that the relaxation of existing prohibitions against gambling will allow.

The major counterforce against legalization centers on fears of increased crime and the corresponding increased need for law enforcement that would inevitably result. Although some would argue against legalization on purely moral grounds (not all religious leaders are agreed on this point, there will be no attempt to deal with this latter position here. Rather, this article considers some of the economic aspects of gambling, both from a micro- and macroeconomic perspective.

We can look at gambling from the point of view of the individual. Who is the typical gambler? Why do individuals undertake high risk wagers? These two questions are useful in addressing the related issue of the regressive effects of gambling. We look at various forms of gambling and consider each as a potential source of revenue. Brief attention is given to the relation between illegal and legal forms of gambling.

Both of these areas serve as background for assessment of the validity of current arguments promoting gambling legalization. The more theoretical arguments for and against this move then are compared to available data from legalized operations. Finally, the current experience of Atlantic City, New Jersey, is used to weigh the costs and benefits of legalized gambling and to consider the potential of the legalization trend.

The questions of who is the typical gambler and why individuals gamble are actually related issues. Gambling can be viewed as a form of risk preference and treated as an aspect of economic decision making under a situation of uncertainty. The economic literature suggests two primary explanations for individual involvement in wagers that have less than favorable odds.

The first position can be traced to the eighteenth century, as postulated economist Adam Smith. Simply stated, it is that, influenced somewhat conceit, a risk-averse individual will incorrectly compute the true probability of winning underestimating the chance of a loss and overestimating the chance of winning. The second argument involves the concept of the increasing marginal utility of money. While this position may be traced to William Vickery in 1945, the first formal and now much cited development of the idea is credited to Friedman and Savage.

The notion that the gambler could be a utility maximizer had previously not been feasible, because with the decreasing marginal utility of money, the utility lost as a result of an unsuccessful wager would be greater than the possible utility gained from a gambling payoff.

Enjoy the Fun and Excitement at the Different Choctaw Casinos in Oklahoma

With eight different exciting locations to offer, Choctaw Casinos are definitely highly recognizable gambling institutions in the state of Oklahoma. As continuously booming institutions in the progressive casino industry, these group of casinos hold ground in various cities including Sallisaw, Broken Bow, Durant, and Grant. […]

Enjoy Topnotch Casino Facilities at Miccosukee Resort and Gaming in Florida

Located along 177th Avenue within the beautiful city of Miami in Florida, Miccosukee Resort and Gaming is one of the most entertaining casinos in the area, which offers topnotch services as well as outstanding game offerings to all the players out there. In order to […]