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Weekly UpdatesThe introduction of a casino into a community, as evidenced from a large number of studies undertaken over the years in different parts of the globe, suggests that casino business affects the community's social and economic structure. This research considers the case of the introduction of a casino into Hamilton, a city in New Zealand with a population of approximately 129,000. Based on 945 responses, it is of particular note that differences in views regarding the casino were evident between the two genders and between those who had patronized the casino and those who had not visited. The results indicate that women and nonvisitors were consistently more negative about the casino's effects on the community than were men and those who patronized the casino.
Keywords: casino; perceptions; gambling; New Zealand
When a casino opened in Hamilton, New Zealand's fourth largest city, residents disagreed on the extent to which it was a benefit. Proponents pointed to the expansion of tourism and business opportunities, while opponents cited the social costs, particularly gambling addiction. After five years of operation, the casino remains controversial. A study finds that about one-third of the residents still hold negative views regarding the casino. Comparing the demographics of those who support the casino with those who oppose it, the study found that women and those who had never visited the casino held the most negative attitudes toward the casino. One recommendation for the casino's managers is to emphasize entertainment as a means of showing other aspects of the casino to those who hold negative views.
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Casino gaming has since 1970 been one of the world's fastest growing service sectors (Siu 2007). While casinos are often thought of as tourist destinations, the casino industry also includes the "locals" market (Shoemaker and Zemke 2005). Considering this, this article reviews research on casinos in various parts of the world and then highlights perceptions of residents about the only casino in Hamilton. New Zealand's fourth largest city, Hamilton's population is given as 134,000 in the 2006 census, and its residents' annual average income is NZ $33,332 (Hamilton City Council 2007 www.hamilton.co.nz/economicupdate).
Supporters of casino gambling point out its benefits in the form of tax revenues, employment opportunities, tourism, and community development undertaken by casinos. Opponents, on the other hand, cite the personal and social costs that result from gambling. Studies have sought to sort out these competing claims. The Compulsive Gambling Society of New Zealand (1996) suggested that while participation in gambling does cost society, gaming facilities also create benefits in form of tax revenue, increased employment, tourism promotion, and recreational enjoyment. A more recent study in North America by Koo, Rosentraub, and Horn (2007) found no significant negative changes in unemployment, bankruptcy, or crime rates after casinos opened. The study weighs fiscal gains from casinos to determine whether the benefits are attractive enough to accept what they suggest would be modest (or no) increments in the social problems that they studied (Koo, Rosentraub, and Horn 2007).
The controversy extends to casinos in Canada, the United States, the United Kingdom, and Israel. Canada is home to sixty-four full-service casinos. Net revenue from government-operated lotteries, video lottery terminals, and casinos increased from C$2.7 billion in 1990 to C$9.0 billion in the year 2000. Employment in Canada's gambling industry increased from twelve thousand in 1992 to forty-one thousand in 2001, and gaming remains the fastest growing component of the Canadian tourism industry (MacLaurin and MacLaurin 2003). A later study by Stevens and Beristain (2004) suggested legalized gambling in Canada is operating on an unprecedented scale; Canadians spend more on legal, government-operated gambling than they do on clothing, shoes, and medicine combined. As Canada's gambling industry expands, they argued that gambling has been increasingly accepted by the Canadians (Stevens and Beristain 2004). Likewise, growth in gambling expenditure in the USA as reported by Awe, Keating, and Schwartz (2002) increased to US$90 billion in 2001 from US$60 billion in 1997. The authors further suggested that communities are turning to the business of gambling for several reasons, including revenue and employment generation (Awe, Keating, and Schwartz 2002). In the United Kingdom, gambling has increased its turnover from 207 million [pounds sterling] in 1964 to 7.4 billion [pounds sterling] in 2002 (Smith 2004). The development of technology leading to proliferation of electronic gambling and internet casinos is adding another growth dimension, as well as a challenge of regulation (Smith 2004; Johnson 2006; Brindley 1999). The significance of gambling as a tourist attraction, an income generator, and a springboard for regional development is a major consideration for legalized gaming. This is particularly an issue in Israel, where religious opposition to gaming originates from the perception that gambling is a vice (Israeli and Mehrez 2000).
Much of the growth in casino gaming has occurred because different gaming venues attract diverse markets. Casinos usually attract both tourists and local patrons. A study comparing sociodemographic characteristics and motivations of tourists who visit Alberta's casinos with those of local Albertans patronizing casinos found significant differences between tourists and locals in regards to gender, education level, and type of occupation, but not in regard to age level or employment status (Hinch and Walker 2005). Tourists were more likely to be women, and their trip was heavily motivated by the chance to gamble. Locals, on the other hand, were more likely to be risk-takers (Hinch and Walker 2005).
Studying the characteristics of casino gamblers facilitates developing market segmentation profiles (Park et al. 2002). Park and colleagues (2002) compared segments of gamblers with respect to their demographic and socioeconomic characteristics and behavioral patterns. Their study assesses whether gamblers participate in other types of activities beyond gambling while visiting a local casino, with the idea of facilitating segmentation and involvement-profile development. The investigation resulted in four distinct clusters: low involvement, self-expression involvement, enjoyment involvement, and centrality involvement. Having identified these clusters, Park and colleagues found no significant differences among them with regard to demographic and socioeconomic variables. Since the gamblers' motivation differentiates them, this analysis helps to identify groups with similar needs or characteristics.
A similar study segmenting casino gamblers in Korea based on motivation was undertaken by Lee et al. (2006). The findings of the study suggest four dimensions of motivation for casino gambling: socializing and learning, challenge, escape, and winning. This segmentation approach can be a useful tool that enables casino managers not only to identify effective promotional and business strategies but also to consider "responsible gaming" approaches to deal with the "problem gambler" who is looking only to win in all circumstances (Lee et al. 2006). In another study from South Korea, Hong and Jang (2004) proposed the following three segments for casino visitors: visited group (VG), intention group (IG), and non-interested group (NG). Implications from the study indicate that the VG group seems to play a leading role in the South Korean casino market. Second, impulsiveness appears to influence participation in gambling; and third, results showed that the IG group is associated with a higher intention to visit a casino (Hong and Jang 2004).
The impact of socioeconomic factors on gambling activity has been investigated in Australia, and the findings suggest that income, gender, age, ethnicity, occupational status, and family composition exert a significant influence on the probability of households' gambling. The effect of these variables vary across the range of gambling products (Layton and Worthington 1999). Casino gambling is also observed to be associated with socioeconomic benefits for Indian tribes in the United States, also creating a boon for local business owners and citizens, attracting tourist dollars, and alleviating poverty and unemployment in several Indian reservations in Arizona and New Mexico (Gonzales, Lyson, and Whitney Mauer forthcoming). Gaming in Colorado has provided increased revenue growth since its inception in 1990, and residents of gaming towns in Colorado perceive benefits, thereby adding support for gaming. Their perceptions were that negative social effects are not significantly related to benefits and level of support (Kang et al. forthcoming).
Gambling in New Zealand is heavily government controlled, as is the case in most jurisdictions (Department of Internal Affairs, 2000). Before 1987, the TAB and Golden Kiwi national lottery were the major government-sponsored gambling activities, and housie (a bingo-type game) and raffles were popular community fundraising activities. After 1987, the government permitted introduction of weekly Lotto; gambling machines in hotels, clubs, and bowling alleys; and Keno. The first casino operation in New Zealand opened in 1994 (Compulsive Gambling Society 1996). The first and only casino in Hamilton, New Zealand, opened in late 2002. At the time of the initial application for planning permission and an operator's license, there was a great deal of debate about the positive and negative aspects of the casino development. The community in many respects polarized into two camps--those in favor and those against. Those in favor were led by mostly the city council and local businesses, and those against were led by a church consortium.
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