Gambling and the American Economy

Abstract

Some form of commercial gambling is legal in almost every state of the Union, reflecting substantial consumer demand for these activities. Yet gambling is regarded by policymakers, the media, and the public as an industry that is different and not subject to the economic laws that govern other industries. However, by examining gambling through standard measures such as consumer spending expressed as percentages of personal income, job creation, and gambling privilege tax receipts, it can be determined that gambling industries are not operating independently of the larger economic context. One of the fastest-growing sectors of the general economy, gambling accounts for about 10 percent of leisure expenditures.