gambling in alberta - Research Services - University of Lethbridge

are focused more on some of the practical issues involved in conducting socioeconomic analyses
of gambling and ensuring optimal scientific rigour.
Gambling is an economic activity characterized by a transfer of wealth. There are groups and
sectors that are winners and there are groups and sectors that are losers, and most of the
impacts are seen in these groups/sectors. Thus, the first step in a socioeconomic analysis of
gambling is to document a) how much money is being transferred (a rough gauge of the
magnitude of the potential impacts); b) where the money is coming from; and c) where the
money is going. The demographic characteristics of the gamblers are particularly important,
with the most important socioeconomic variables being age, gender, ethnicity, income, and
problem gambling status. The geographic origin of the gamblers is also very important because
it speaks to a) whether the revenue is an infusion of new wealth or just local money that has
been redirected, and b) the geographic range in which to expect (and therefore, measure)
impacts.
Next, it is important to clearly document which groups/sectors are the primary recipients of
gambling revenue (i.e., private operator, different levels of government, charity, local
community) as well as the geographic location of each of these groups. It is also essential to
document how these groups then disburse or spend the money so as to identify all the
downstream beneficiaries. The geographic origin of the operating expenses to run the new
type of gambling, as well as the origin of any equipment purchased are also relevant to a
socioeconomic accounting. (Note: if gambling revenues are primarily collected at the state or
federal level (rather than at the municipal level) and are redistributed provincially or federally,
then there is a good chance that there will be a net outflow of money from the local
municipality hosting the gambling venue). 11
Establish both the Micro and Macro Geographic Impacts
Most socioeconomic impact studies have only focused on the changes in the community that
received the new form of gambling. However, for a full understanding of the impacts, it is
necessary to go beyond these boundaries, as financial inflow/benefits in one region usually
come at the expense of financial outflow or loss of benefits in adjoining regions. Thus, one
should aspire to assess both the micro (community specific) impacts and the macro (greater
regional) impacts. As mentioned, the geographic origin of the patronage is a good indication of
the regional scope of the impacts. Once the boundary of this larger region/jurisdiction is
established, it is important to clearly identify the impacts within the community of interest as
well as regionally.
11 Some jurisdictions compensate for this by providing municipalities with a guaranteed fixed percentage of the
profits (e.g., British Columbia).
26