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There are many disadvantages to casinos, though. One of them is the risk of compulsive gambling. Although casinos make significant profits from gambling, people addicted to gambling contribute to the problems of the rest of society. Statistically, five percent of casino patrons are addicted, generating 25 percent of the casino’s profits. Additionally, economic studies have found that casinos have a negative impact on local communities. Casinos attract local players, but they divert spending from other forms of entertainment in the community. Even though casinos generate a large amount of revenue for the local economy, the costs associated with treating problem gamblers and lost productivity can more than offset the economic gains of the casino.
Local unemployment rates are another concern for local officials. While a casino may create new jobs, it will also attract skilled labor, reducing the unemployment rate in the area. However, while the overall number of jobs created by a casino may be beneficial for local communities, it will be difficult to determine whether the casino will create jobs in the area. For example, if the casino is located in a rural area, the majority of the work force will be from outside the region.