AN ECONOMIC ANALYSIS OF OVERCONSUMPTION OF GAMBLING IN AUSTRALIA (Essay Sample)

AN ECONOMIC ANALYSIS OF OVERCONSUMPTION OF GAMBLING IN AUSTRALIA
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Introduction
Based on available researches, Australians are ranked among the globes most prolific gamblers. In 2016, Australians lost more money per person- about US$ 990- when compared to other people in the developed nations. Singapore was the runners up with losses amounting to $650 and Ireland came third with loses amounting to $ 500 per person (Keneally, 2017). Based on a report from Australian Gambling statistics, the total gambling expenses in Australia increased by 8% from $21.1 billion in 2014 to $22.7 billion in 2015. Moreover, per adult gambling expenses grew from $ 1,171 to $1,242. The most common types of gambling are lottery games (like Powerball/Oz Lotto), with 30% reporting to using it. Poker machines was 2nd, with 8% of adults stating that they use pokies in any given month.
Figure 1: Monthly expenses on various gambling forms
lefttopThe driving force behind this national addiction are the over 195,000 electronic poker machines in Australia. With the exception of Western Australia, pokies are allowed in casinos, pubs and social clubs, where they are in plenty. Based on a research that was done at the UCLA Gambling Studies Program, it was established that pathological gamblers face the danger of developing stress-related condition like hypertension, deprivation of sleep, cardiovascular diseases and peptic ulcer illness. Moreover, they are unable to sustain a job, and relationships. (Keneally, 2107). The activities of one problem gambler adversely influence the lives of between 5 and 10 other people. This implies that there are over five million Australians who might be impacted by problem gambling annually and this include friends, family, and employers. People suffering from gambling issues lose about $21,000 annually. This one third of the average yearly salary. Hard-earned cash, which could have been used to pay bills, paying a mortgage, paying fees, or investing the cash.
Use of relevant economic theory to explain effects of gambling on economic efficiency Figure 2: Supply and demand economic Model