Les Bernal

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“What my research indicates is that casinos don’t add to the economy of a city – in fact, in recessionary times, they subtract from the economy,” said Jonathan Krutz, professor emeritus at Boise State University College of Business and Economics. “The revenue going into casinos, by and large, comes locally, so it’s not benefiting local businesses, it’s taking away from local businesses, and the money casinos depend on comes primarily from people who are addicted.”

Despite what developers say about their proposals, economists aren’t convinced that casinos benefit urban communities. In fact, some say that Las Vegas’ success is the exception.

Research suggests casinos aren’t the jobs driver they’re thought to be. The thousands of construction jobs end once the casino is built. Krutz said the permanent jobs are often low-paying and can be unfulfilling to some, since they are based on collecting losses from customers.

“The economic benefit comes when they’re hiring people that are unemployed,” Ursinus College professor of business and economics Andrew Economopoulos said. “If they’re hiring people that already are employed, that’s only switching from one working firm to another working firm.”