Mirage of Prosperity
As South Carolina debates whether to open its doors to casino gambling, advocates often frame the proposal as a win-win for everyone involved. They claim casinos bring new jobs, boost state revenue, and provide harmless entertainment for those who wish to participate. Yet, beneath these appealing slogans lies a complex reality of economic displacement, addiction, and community harm. While casinos may appear to promise prosperity, their long-term effects often reveal deep costs to taxpayers, local economies, and the moral fabric of communities. The following sections critically evaluate four prevalent misconceptions regarding casino expansion and substantiate the discussion with empirical evidence.
Misconception 1: “The construction of a casino is entirely cost-free for taxpayers and will reliably generate significant net revenue for the state and its citizens.”
While casinos provide tax revenue and jobs, the idea that they are purely “cost-free for taxpayers” is overly optimistic. Revenue often depends on local residents’ gambling, which diverts income from other sectors. States must also fund new regulatory, infrastructure, and addiction-treatment systems. For instance, the U.S. commercial gaming industry generated about $328.6 billion in economic output and $52.7 billion in taxes in 2023, but much of this replaces rather than adds to preexisting spending.¹ Similarly, the Encore Boston Harbor resort in Massachusetts generated about $1.3 billion in economic impact in 2022, but consumers shifted over $167 million away from other local goods and services toward gambling, showing that “profits” can come at a local cost.²
Misconception 2: “Playing at a casino is harmless recreation for most people and does not carry elevated risks of addiction.”
Most adults who gamble do so recreationally, but a measurable minority develop addiction or serious financial harm. A 2022 meta-analysis found that roughly 2.43 percent of adults are “moderate-risk” gamblers and 1.29 percent meet the threshold for problem gambling.³ Another study found that offline casinos increased the odds of addiction by about 1.5×, and online casinos by more than 4×, compared to other gambling activities.⁴ These numbers may seem small, but they scale quickly when a local casino increases exposure among tens of thousands of people.
Misconception 3: “A casino development will automatically provide large-scale employment and meaningful, sustained economic benefit to the local community where it is located.”
Casinos can create jobs, especially in hospitality and service sectors, but often displace employment from nearby restaurants, hotels, and entertainment venues. Studies show that while employment in “arts and entertainment” may rise, jobs in management and manufacturing sometimes decline.⁵ In Iowa, doubling the number of casinos over a decade yielded little long-term change in gambling rates or regional economic improvement.⁶ The promise of large-scale local prosperity, therefore, remains uncertain, particularly once opportunity costs and social burdens are considered.
Misconception 4: “Since the state already operates a lottery, allowing full-scale casino gaming is no different and poses no new moral or economic concerns.”
While lotteries also involve gambling, casinos differ in speed, frequency, and addiction potential. Lotteries involve slow, infrequent betting cycles; casinos use rapid, repetitive play designed to sustain attention and loss-chasing. Low-income households spend an estimated 6 percent of their income on lottery tickets, but casino play poses even higher addiction risk.⁷ Studies show average gambling-problem scores around 4.0 for casino patrons versus 1.43 for lottery players.⁸ While Palmetto Family has consistently opposed lotteries, casinos, and other forms of predatory gambling, there is no question that casinos amplify both personal and community risks beyond those associated with a state lottery.
While advocates of casino legalization in South Carolina highlight short-term gains such as job creation, increased tax revenue, and the affirmation of individual choice, the long-term economic and personal costs are far less favorable. Initial revenue spikes are frequently followed by stagnation, offset by increased social costs, declines in productivity, and the diversion of local spending from existing businesses. Core economic sectors, including manufacturing, often experience limited or negative growth, while state tax revenues become increasingly volatile. In many cases, states ultimately expend more on regulatory oversight, addiction treatment, and infrastructure strain than they receive in net revenue from the establishment. Thus, while already wealthy investors and casino operators stand to profit, the financial and social burdens fall disproportionately on taxpayers. A state committed to sustainable prosperity must therefore resist short-term allure and recognize that casino expansion typically benefits the few at the expense of the many.
Sources consulted for this research include:
American Gaming Association. National Economic Impact of the U.S. Gaming Industry 2023. Washington, D.C.: American Gaming Association, 2023.
University of Massachusetts Amherst. “Encore Boston Harbor Generated $1.3 Billion in Economic Impact.” UMass News, June 21, 2023.
Lubian, Pasqualino, et al. “Global Prevalence of Problem and Pathological Gambling: A Systematic Review and Meta-Analysis (2016–2022).” Addictive Behaviors Reports 17 (2022): 100430.
Morii, Ryo, et al. “Associations between Offline and Online Casino Gambling and Problem Gambling in Japan.” Frontiers in Psychiatry 15 (2024): 1411396.
Walker, Douglas M., and John D. Jackson. “The Effect of Legalized Gambling on Employment.” In Handbook on the Economics of Leisure, edited by Samuel Cameron, 447–468. Cheltenham: Edward Elgar Publishing, 2012.
University of Iowa. “Iowa Casinos Didn’t Increase Gambling Addiction, Study Finds.” ScienceDaily, December 14, 2012.
Heartland Institute. “State Lottery Would Be a Poor Revenue Source for Mississippi.” Heartland Institute Research Commentary, April 17, 2018.
Auer, Michael, and Mark D. Griffiths. “Gambling Intensity and Gambling Problems: Comparing Casino Games, Sports Betting, and Lotteries.” Journal of Gambling Studies 38, no. 3 (2022): 865–883.
Biography,
Josiah DuCharme was raised in Charlotte, North Carolina, and graduated in 2025 with a degree in Philosophy, concentrating in Metaphysics and Epistemology. During his undergraduate studies, he earned recognition on the President’s List at Union University and was active in the Honors communities at both Union and Columbia International University.
Josiah has served in leadership and organizational roles, including Team Lead for two Chick-fil-A franchises, Director of Content Development for Becoming Disciples LLC, and currently as Publishing and Advocacy Director for Palmetto Family Council. He has also developed a portfolio of works in philosophical and political theory.
In addition to his academic and professional endeavors, Josiah has spoken at Christian camps and conferences, bringing together philosophical depth and practical ministry application.
Josiah and his wife, married in January 2025, reside in Columbia, where they are active in ministry and community engagement.
