All this Talk is Bad for Business

I caught the highlights of the Parliamentary "debate" last night, which was expectedly focused on the casino. The theme for the evening seemed to be "Gambling is a very, very bad thing." I believe PM Lee might have said something about it being a pointless activity. The newspapers today have picked up this thread of thought, with multiple headlines decrying the act of gambling and informing us how to not be lured into the dark pits of the casino.

I know this is all very well-intentioned. It shows that the government understands that gambling is a social ill. This is a public service announcement for more and better education. It also serves to appease those who might have felt ignored when they voiced their concerns over the ills of gambling.

However, it's almost like shooting yourself in the foot. Here's the message being relentless drilled into the watching and reading public - "Gambling is bad. If you are smart, you will stay away from the casino." Well, that's all fine and maybe true, but it's hardly going to inspire confidence in potential investors. "Hey, come build a casino. Heck, build TWO casinos. Business will be GREAT!!! By the way, we are doing everything we can to keep people away."

I suppose the rationale is that the casino is not meant for locals. It's for tourists. The ones who are too dumb or not educated enough to realise they shouldn't be going to the casino. The ones who are imprudent and lack self-control. It's a pretty condescending signal to send out to foreign visitors.

I PERSONALLY believe that gambling is bad and a waste of money, but I don't agree that this is an universal truth. In economics, we speak of the "utility" derived from consumption. For people like me, there is no utility gained from gambling when there is only money going out and none coming in. For others, the process of gambling, of "buying a little hope" provides plenty of utility, which is not eroded one bit by their failure to win or to break even. The money spent in buying hope also buys them enjoyment, much as we might enjoy a movie or a foot massage, both of which we are willing to pay for. It makes people feel good for the duration of the experience. And if people can do this within their means, is that so bad?

I think the casino is a great idea for people who can enjoy the gambling experience in this way. And they should not be made to feel bad or stupid for this. The unbalanced assessment of gambling as being absolutely bad might put some people off. And these are exactly the people that are needed to make the casinos successful economically - which was the main reason why they will be built at all.