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1. Gambling in fact has many negative externalities. If someone gets addicted, the likelihood is much higher to be depressed. Depression is factor, which leads to high costs for the society.
2. Gambling addiction leads to economic costs because of crime actions. Other market actors have to increase their security standards, which means higher costs.
3. Many gambling addicts go as a consequence to jail. Jail means EXTREMELY high costs to society.
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I do not agree with 3, gambling and jail are not that related.
Yes, gambling has many negative externalities, it is well know. It is particularly troublesome in the physical location of the gaming since it attracts the type of cohorts that live sucking of sucking the blood from the fortunate players. It is also linked to alcohol, drugs, prostitution, etc... Yet it is an economic activity so it also bring employment and benefits and it is not that different from many other activities with strong negative externalities, such as mining, nuclear energy, plastic production just to mention a few. Even cars pollute.