Increased Gambling Boosts Government and Private Revenue

Gambling News - July 14th, 2009 - Written by Glen

Increased gambling within the states has long been regarded as a great way to increase money within the state. The added taxes collected from gambling revenues have been a great addition, in both quality and quantity, to the coffers of states. While many accentuate the advantages of gambling on government revenues, rarely are the trickle down economics placed under the microscope.

With the recent addition of slot gaming to different states, there was bound to be a backlash in the private sector. Slot machine manufacturers have seen a recent hike in stock prices, bringing investors and corporate employees additional finances. The New York Stock Exchange has shown that many manufacturers have seen a sharp increase in stock prices over the quarter. Most companies had a sharp decline, but over the last month prices have shot back up.

As stocks rise, the investors of several companies have been making out quite well. Trends have shown that more and more states are accepting slot gambling as an option around their respective states. Whenever a state increases slot gambling, it is expected that, at the very least, 2,000 machines will be added. Depending on the price per machine, this could translate to a sizable amount of money for the parent company.

Once the machines are purchased, they will have to be installed. This will, in turn, supply even more money to another company outsourced to set up the machines. Additionally, new jobs will be created to maintain the machines as well as keep those in the gambling venue comfortable. Pushing along the line, the electric companies and freight companies will also see increased revenues.

While trickle down economics have not been totally successful in the past, the numbers in this instance cannot lie. Jobs will be created, tax revenues generated, and the general populace will be entertained.