An Analysis: Gambling's Influence on Poverty - Literature Review

This literature review explores the intricate relationship between gambling and poverty, highlighting how gambling, often seen as a quick way to earn money, can lead to financial instability and homelessness. The review examines various forms of gambling, including casinos, horse racing, and lotteries, and their impacts on individuals across different income levels. Studies from the UK, US, and Canada indicate a strong correlation between problem gambling and poverty, with addiction leading to trauma, loss of identity, and ruined businesses. The review also addresses the economic aspects of gambling, including its contribution to taxation revenue and its potential to exacerbate unemployment. It further discusses the role of gambling advertising in promoting betting and the impact of casino gambling on personal bankruptcy rates, noting that while gambling can stimulate local economies, it also carries significant social and economic risks. Desklib provides access to similar documents and study resources for students.

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Contents
Introduction.................................................................................................................................................2
Project Objective.........................................................................................................................................2
Project Scope...............................................................................................................................................2
Literature Review........................................................................................................................................2
Conclusion...................................................................................................................................................7
Reference....................................................................................................................................................8

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Introduction
The purpose of this report is to enlighten the reader about the relationship between gambling and
poverty. Both the aspects might be looked as distinct but they have very significant relationship
with each other. Gambling refers to the act playing games by risking money. Money acts as a
result that is received to the winning team. Horseracing, betting on cricket, playing cards etc. is
some of the games that come under the process of gambling. In some parts of the world,
gambling is considered as illegal for people, there are many penalties levied on people playing
gamble (Kindt 2016). Further, it should be noted that poverty as a very strong relationship with
gambling as these are the people who are most attracted towards such type of activities in the
environment. This game is majorly played by the higher section of the society or poor present in
the society. Further, the report will discuss literature review on the relationship of gambling and
poverty. More details about the report are discussed below:
Project Objective
The objective of the report is enlighten the reader about the relation between the act of gambling
and poverty in the society. The report will explain views of different people on the concept of
gambling and its relation with poverty and poor people.
Project Scope
The scope of the literature review is to cover the relationship between poverty and gambling.
Literature Review
According to Rose, 2013 gambling refers to the process of wagering of money or something of
material value on an event that is uncertain. Gambling is performed to earn additional money by
not performing any activity. This act is considered as the best way to double the money quickly
without performing any productive function in the environment. In the process of gambling
people risks money or their valuables in order to earn money or win objects. At some places
gambling is considered as a legal act whereas in many parts of the world, people are prohibited
from playing gamble (Hsu 2014). Casinos are providing people to play gambling with many

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different chances to win. The basic familiar age of gambling is 18 in most parts of the world.
Further, there are various types of gambling present in the nations worldwide, like, Casinos,
horse racing, scratch cards, lottery and online gambling. Lottery is the type of gambling under
which people purchase tickets at minimal prices and get the chances to win money ranging from
10,000 to millions. Every ticket cost around 10 to 20 bucks only. People become addicted to
purchase such tickets with a hope to win prizes some day. Further, horse racing is a game that is
prohibited in many parts worldwide. Casinos are now formed to lure the customers in this
business and gamble as well (Nichols, and Tosun, 2017).
However casinos are not restricted to the richer section of the society as poor people cannot
afford the cost of playing gamble at such a place. Further, it should be noted that one of the
biggest reason due to which gambling is successful in the countries because it has high rate of
taxation on its income along with good revenue to the people as well (Barsky, and Maier, 2015).
The act of gambling works in such a way that people pay some amount of money and in return
try their luck to multiply the amount invested. If they lose their money is gone but if they win,
their money gets multiplied. Several studies initiated in the countries UK, US and Canada
express that there is a relationship between gambling and poverty. Gambling is one of the biggest
reason due to which people experience poverty and homelessness in the society (Piscitelli,
Harrison, Doherty, and Carmichael 2017). Every person is the current environment is aiming to
earn more without investing much of their time or money; for such people gambling is best way
to earn money because it given more money with less investment (Barron, Staten and Wilshusen,
2002).
This age old business attracts many people irrespective of their age, sex, occupation or income
level. Be it a rich person or poor, every person is attracted towards gambling. The end result of
this activity is seen negative only irrespective of the short term profitability or success. Around
35% of the Toronto people that expressed their grief that they are addicted towards the problems
gambling at one point in their lives. There is very crucial relationship between the problem
gambling and problem of poverty attracted with companies. People face trauma, homelessness,
loss of identity due to the problem of gambling in the society. Many instances can be seen when
people have ruined their family owned business, life due to their habit of gambling (Hsu 2014).

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The fact should be noted that just like poverty gambling is a vicious circle that traps people in it.
Irrespective of the age, sex or income level people play gamble. Initially gambling is started as a
fun activity for people but when they start to earn good profit from it, and then they start to play
gambling more often. Resulting in which, the gambler is left with no money in hand. This
activity of gamble is just a chance of luck so people believe that one right decision can turn their
life positively due to which they go on playing such games even are losing money and goods. It
is not the fact that only poor people play gambling instead the richer section of the society is
considered as more inclined towards such games (Nichols, Tosun,. and Yang, 2015). The richer
people play such games as their hobby but soon after they start to win, it gives them adrenalin
rush due to which they get addicted to playing gamble. Many people have lost their lives and
families due to such habit of gambling (Wu, and Chen 2015).
Such rich people go into casinos and clubs and play gamble and slowly their start to lose their
money and then slowly everything else. In this way a rich and wealth person becomes poor due
to the problem of gambling. Gambling addiction can be considered as one of the biggest problem
among people because at the initial level no person keeps a handsome amount of money at stake.
Gambling makes, the people forget their roles and responsibilities and invest the earned money
in gambling only. Gambling is all about probability, there are chances that a person might win in
an situation but they are equal sum of chances that a person might lose the money as well.
Rapacity to earn double make people bet again and again even after losing money (Brevers, et.
al., 2015). So, it can be clearly seen that there is direct relationship between poverty and
gambling as a person who plays gamble is ought to lose one day and lose all that they have
(Appendices 2). At the initial level when a person starts betting (gambling), at that time they start
with a smaller amount because they are constantly stuck with the fear of losing the earned
amount. However, slowly when they start to win, their confidence starts to build due to which
they increase the betting amount one by one and at the end when they lose, they lose everything
(Dighton, Roberts, Hoon, and Dymond 2018). It is seen that when a person face poverty, they bet
on things with a confidence that someday they will win but till that time gambling takes are their
money in vain. In addition, people do not get affected by losing such money because such money
was not earned by them but it was just earned while playing due to which they do not have value
of money (Abbugao, et. al., 2015).

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It is said that gambling is an activity of richer people but it is the same activity where rich people
lose. The act of gambling later indulges a person into drinking and smoking as well due to which
the gamblers start to deteriorate their health along with their money. The habit of gambling is
seen very common in university students who face the need of money while living in different
parts of the world. Resulting in which, they start using this type of means to earn money and
forget about studying and learning things. Thus, it should be said that the problem gambling rots
the whole community and nation resulting in which the economy fails to become competent and
effective as well (Wong, et. al., 2018). So, it can be said that due to focus of people aiming to
earn money in a wrong way, the level of poverty goes on increasing. The act of poverty not only
makes a poor person poorer but it also makes a rich person poor. The activity of gambling is
legalized at some parts of the world because playing such games with limited sum of money and
just for fun can be good. However, it depends up on people that how they take such rules and
play due to which they attract penalty more that profits. Casino gambling is one of the biggest
reason of bankruptcy of people in the nations worldwide (Hanss, Mentzoni, Griffiths, and
Pallesen 2015).
One movement that can encourage individual money related emergencies and that has likewise
experienced emotional development is business betting, particularly club betting. This article
constructs a straightforward model of liquidation decision and observationally tests the model
utilizing one of a kind county‐level information on obligation, pay, family unit age, populace
thickness, and club betting and in addition state proportions of work and conjugal solidness,
medical coverage scope, and garnishment limitations. The creators find that the closeness of club
betting gives off an impression of being related with higher rates, yet that the nearby effect is
significantly more articulated than the impact of clubhouse betting on the national recording rate
of betting. To measure the extent of the effect, the examination predicts over a 5% decrease in
the recent years documenting rates for provinces encompassing a club, and a 1% decrease in the
across the nation recording rate if one somehow managed to dispose of clubhouse betting.
Subsequently, despite the fact that clubhouse betting applies vital nearby impacts, across the
nation the rate and development of gambling club betting does not clarify a great part of the
ascent in insolvencies amid the previous decade (Appendices 1). The results uncover that club
betting is related with an expansion in individual insolvency in seven of the eight networks. In
five of the seven the expansion is factually noteworthy. Notwithstanding, an expansion isn't all

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inclusive and in one network, Harrison Region, Mississippi (Biloxi), insolvency per capita
altogether diminished. It is hypothesized that this abatement is because of the highlights of both
the network and the gambling club industry in Biloxi (Brown, et. al., 2015).
Although the fact should be noted that gambling is considered as an economic business that can
increase the growth of the country by providing it profits on the revenue earned by gambling.
But at the same time it also increases the level of unemployment as well. Unemployment is the
biggest reason of poverty occurring in the country. In a nation where the youth of the country is
involved into such illegal things how can the nation develop its community. Betting publicizing
is proposed to empower individuals to bet (Ellison, Vale, and Ladouceur 2017). It normally
depicts betting as a positive aspect, that is collaborated with having a great time, receiving an
adrenaline rush, winning cash, being proficient about games and pony dashing, and having the
opportunity to end up rich. In numerous nations, including Sweden, promoting, supporting, and
publicizing of betting is omnipresent, showing up in TV, on the Web, in web based life, and in
for all intents and purposes every single other medium channels (Hsu 2014).
Showcasing for conceivably addictive customer merchandise, for example, mixed drinks and
tobacco, are in numerous nations subject to confinements since it is viewed as hindering to
general wellbeing to invigorate interest for such products. Betting turmoil is arranged in the fifth
release of the Symptomatic and Factual Manual of Mental Issue (DSM-5) as an enslavement
issue, and the more extensive idea of issue betting has apropos been characterized as 'troubles in
constraining cash as well as time spent on betting which prompts antagonistic outcomes for the
gambler, others, or for the network (Binde, and Romild 2018).
Despite the fact that the Over the top Betting List (PGSI) is without a doubt a set up file of
betting related side effects, it doesn't measure the level of mischief experienced by individuals at
various focuses on the range of betting issues. The motivation behind the examination was to
build up the connection between the PGSI classification and the descending contrasts in
connection to the personal satisfaction identified with wellbeing (HRQOL) utilizing a populace
wellbeing strategy. The wrongs revealed by players and those influenced in the PGSI range have
been changed into 798 vignettes. A populace bunch as a rule and specialists working with issue
gamblers (Browne, et. al., 2017).

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Conclusion
Thus, in the limelight of above mentioned events the fact should be noted that there is a very
strong relationship between the problem of gambling and the act of poverty. Through the above
mentioned analysis, it can be clearly seen that due to the activities of gambling prevailing in the
environment, people are unable to find their productivity that increases unemployment. This act
also induces the people in other different negative activities like smoking, drinking etc.
Gambling rotten the economy of a country by making the poor person poorer and rich person
also poor. The report adequately satisfies the requirements of the task.

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Reference
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Rothman, H.K., Davis, M., Andersen, K., Ap, J. and Aupperle, K.E., 2015. Evaluating the
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Barron, J.M., Staten, M.E. and Wilshusen, S.M., 2002. The impact of casino gambling on
personal bankruptcy filing rates. Contemporary Economic Policy, 20(4), pp.440-455.
Barsky, J. and Maier, T., 2015. Win Or Lose, It's The Casino Experience That Gambling Hotel
Guests Value Most. International Journal of Business, Marketing, & Decision Science, 8(1).
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Brevers, D., Noël, X., Bechara, A., Vanavermaete, N., Verbanck, P. and Kornreich, C., 2015.
Effect of casino-related sound, red light and pairs on decision-making during the Iowa gambling
task. Journal of gambling studies, 31(2), pp.409-421.
Brown, J., Stinchfield, R., Hesse, M.L., Krasowski, M.D., Harris, B. and Von Eschen, J., 2015.
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https://www.researchgate.net/publication/325048774_Gambling_problems_and_the_impact_of_f
amily_in_UK_armed_forces_veterans

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Ellison, L.J., Vale, K. and Ladouceur, R., 2017. Disordered Gambling: The Effects of a Brief,
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Appendices
Appendices 1:

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Increase in gambling revenue states that more and more people are getting poor in the society.
Appendices 2:

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