The Ethics of Gambling

Over the last couple of decades we’ve seen a vast increase in gambling operations in this country, from state and multi-state lottery drawings to tribal gaming to the appearance of casinos in communities where gambling was previously outlawed. But while there has been a lot of ink spilled about whether or not gambling is wrong (in a religious sense of being a sin under several theological systems or in an exploitation sense of using someone’s addictions to make money off of him or her), I haven’t seen much discussion about the ethics of the industry itself, or of the larger effects on the community, the business environment, or the economy itself. Accordingly, I thought it might be interesting to take a closer look…

One of the most common arguments advanced in favor of gambling operations is that they put more money into the local economy. While this is sometimes disputed – if the facility is owned by interests from outside the community, the profits will be leaving too – it is hard to deny that the creation of jobs for local residents will have a positive effect overall. If the business purchases supplies locally – whether food for people, fodder for horses, equipment or uniforms for employees, energy from local utilities, or whatever – this will also add to their suppliers’ bottom lines. If the introduction of gambling brings visitors into the community, this can strengthen the local tourism industry (or create one of the community didn’t already have one), which will also create sales for local companies and jobs for local residents. And if the community becomes a tourist destination, there is always the possibility of attracting additional businesses (amusement parks, shopping centers, movie theaters, and so on) who will share in the revenue stream created by waves of tourists…

On the downside, the generation of an increase in tourist traffic may also have negative effects on the community. Traffic and pollution will almost certainly rise as more people make use of local roads and public spaces, and crime will usually rise as predators come out to feed on the unwary tourists and careless gamblers. Gambling is an addiction, and there will inevitably be those members of the community who become addicted and lose more than they can afford. If any of the facilities are owned by interests from other states or other countries those entities may begin to exercise influence in local government, seeking to have municipal or county laws passed that will increase their profitability. The local infrastructure will most likely need to be expanded to handle increased demands on police, fire fighters, paramedics and ambulance services, healthcare, and potentially even education and housing. And while it’s not as universal as the movies and television would have you believe, organized crime and its attendant issues are a very real threat where such operations exist…

Unless you’ve been living somewhere that already has legal gambling operations (or somewhere such things would never be possible due to cultural or practical limitations) you’ve probably heard all of these arguments before. What I am asking is how we, as business people, balance the benefits our operations might provide to the community against the harm we might inadvertently inflict? Can we in reason say that because in our opinion the benefits outweigh the risks, the community should just accept us? For that matter, can we tell our stockholders that because the risks are so great, we are not willing to go forward with a business operation that could make us (and therefore them) a great amount of money? Do we have an ethical responsibility to do what is best for the community, whether they want us to or not? Or should we assume that the community leaders are grown adults who have chosen to legalize gambling and allow us to build facilities for that purpose in their jurisdiction?

It’s worth thinking about…