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The Evaluation of Gambling Sector's Social Costs in Lithuania

Abstract

This article analyses the social costs of gambling sector in Lithuania. The aim of the research is to evaluate the change of gambling sector's gambling gross revenue according to the established right to submit a request to self-exclude from gambling since May 1, 2017. The scientific problem of the research is how to define and evaluate gambling sector's social costs. The analysis is conducted by evaluating dependency connection between gambling sector's gambling gross revenue and gross domestic product taking into account the changing quantity of requests to self-exclude from gambling and current economic situation in Lithuania. The following methods are used for analysis: graphical analysis, paired correlation analysis and linear regression analysis. First of all, the conception of the social cost of gambling is being analysed in the article. Then using previously specified methods the relationship between gambling sector's gambling gross revenue and gross domestic product in the country is evaluated. Using a linear regression equation, the model, showing how gambling gross revenue of gambling sector was expected to change in response to changes in the country's gross domestic product is obtained. According to gambling gross revenue for 2017-2019 the model reveals that gambling sector revenue, considering the change in gross domestic product, had a higher growth potential and the right to submit a request to self-exclude from gambling established in 2017 may have had a serious effect on slowing down the growth of gambling revenue.

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The Evaluation of Gambling Sector's Social Costs in Lithuania

Author: Šimberová, Iveta; Zitkiene, Rima; Macerinskiene, Irena; Geneliene, Greta
Publisher: Kaunas University of Technology
Year: 2020
DOI: 10.5755/j01.ee.31.5.25951
Source: https://dspace.vut.cz/bitstreams/090a1f1a-fd6d-4962-ba3d-ce83e1daa03b/download
-558-
Inzine ine Ekonomika-Enginee ing Economics, 2020, 31(5), 558–564
The E alua ion o Gambling Sec o ’s Social Cos s in Li huania
I e a Simbe o a1, Rima Zi kiene2, I ena Mace inskiene2, G e a Geneliene2
1B no Uni e si y o Technology
Kolejni 2906/4, 61200, B no, Czech Republic
E-mail. simbe o a@ bm. u b .cz
2Mykolas Rome is Uni e si y
A ei ies s . 20, LT-08303 Vilnius, Li huania
E-mail. [email p o ec ed]u; i ena.mace inskien[email p o ec ed]u; g mo ke ic@s ud.m uni.eu
h p://dx.doi.o g/10.5755/j01.ee.31.5.25951
This a icle analyses he social cos s o gambling sec o in Li huania. The aim o he esea ch is o e alua e he change o
gambling sec o ’s gambling g oss e enue acco ding o he es ablished igh o submi a eques o sel -exclude om
gambling since May 1, 2017. The scien i ic p oblem o he esea ch is how o de ine and e alua e gambling sec o ’s social
cos s. The analysis is conduc ed by e alua ing dependency connec ion be ween gambling sec o ’s gambling g oss e enue
and g oss domes ic p oduc aking in o accoun he changing quan i y o eques s o sel -exclude om gambling and cu en
economic si ua ion in Li huania. The ollowing me hods a e used o analysis: g aphical analysis, pai ed co ela ion
analysis and linea eg ession analysis. Fi s o all, he concep ion o he social cos o gambling is being analysed in he
a icle. Then using p e iously speci ied me hods he ela ionship be ween gambling sec o ’s gambling g oss e enue and
g oss domes ic p oduc in he coun y is e alua ed. Using a linea eg ession equa ion, he model, showing how gambling
g oss e enue o gambling sec o was expec ed o change in esponse o changes in he coun y's g oss domes ic p oduc is
ob ained. Acco ding o gambling g oss e enue o 2017–2019 he model e eals ha gambling sec o e enue, conside ing
he change in g oss domes ic p oduc , had a highe g ow h po en ial and he igh o submi a eques o sel -exclude om
gambling es ablished in 2017 may ha e had a se ious e ec on slowing down he g ow h o gambling e enue.
Keywo ds: Gambling Sec o ; Social Cos s; Ex e nali ies; Gene al Domes ic P oduc ; Gambling G oss Re enue.
In oduc ion
Gambling, like o he ac i i ies wi h nega i e
ex e nali ies, causes no only posi i e bu also nega i e
e ec s o he economy. The nega i e impac o such
ac i i ies is mani es ed h ough he social cos s, i.e. some o
he ope a ing cos s associa ed wi h he nega i e
consequences o hese ac i i ies a e passed on o he socie y.
As Ba ke and B i z (2000) obse ed „gambling is, a bes ,
p oblema ic beha iou wi h good and bad consequences”.
Fo many yea s scien is s hough ha economic g ow h
and g owing p oduc ion a e he essence o public wel a e
(Gine icius, 2019). Cu en ly scien is s a gue ha economic
g ow h does no imp o e people's li es and, he e o e,
canno be conside ed as a goal o sus ainable de elopmen .
The social aspec o sus ainable de elopmen is abou
inc easing he social wel a e o all people (Melnikiene e
al., 2018). Volodzkiene (2018) poin ed ou ha „ he
economic g ow h o a coun y does no gua an ee he
inc ease o social wel a e”. A p esen esea che s ha e
concluded ha g oss domes ic p oduc is no he bes ool o
measu e social wel a e (Mo ke icius, 2016).
As Lojpu and D asko ic (2013) co ec ly obse ed, he
nega i e ex e nali ies c ea ed by business on he economy
a e di ec ly ela ed o he lack o social esponsibili y in
business beha iou . E en hough he p ima y pu pose o
business is o make p o i , bu o he sake o sus ainable
economic de elopmen , business mus beha e in a socially
esponsible manne (Lojpu & D asko ic, 2013). Based on
ha , en i ies ha ca y ou ac i i ies wi h nega i e
ex e nali ies pay co ec i e axes aimed a compensa ing he
socie y o he ac ual ha m, i.e. he social cos s.
Since he legaliza ion o gambling in Li huania in 2001,
he gambling sec o was apidly expanding. This sec o has
con ibu ed o he c ea ion o new jobs, he aising o he
s a e budge h ough addi ional axes and eme gence o a
new kind o addic ion. Al hough he gambling sec o in
Li huania is de eloping apidly, since he beginning o
gambling legaliza ion in Li huania, no analysis has been
ca ied ou o iden i y, analyse and e alua e he social cos s
o his sec o .
Un o una ely, esea che s (Philande , 2013;
G ebliauskas, 2009; and o he s) o en choose only he
axa ion sys em o he gambling sec o as he objec o
esea ch and he nega i e ex e nal e ec s caused by his
sec o a e le only as a seconda y objec . Also, many schola s
do no analyse he concep o social cos s in hei esea ch and
wi hou examina ion choose social cos s o gambling in hei
esea ch acciden ally (Goodman, 1994; G inols, 2004;
Chalaguine, 2018; and o he s). The economic concep o
social cos s was mainly analysed by Walke (2013) who
ied o classi y social cos s in o ypes and analysed social
cos s e alua ed by o he scien is s.
I e a Simbe o a, Rima Zi kiene, I ena Mace inskiene, G e a Geneliene. The E alua ion o Gambling Sec o ’s…
- 559 -
The analysis o he scien i ic li e a u e e ealed ha no
Li huanian scien is paid a en ion o he analysis o he
concep o social cos s o gambling sec o and did no analyse
he impac o hese cos s on he economy o any ex en . I can
be s a ed ha gambling in Li huania has no ecei ed enough
scien i ic a en ion and he impac o his sec o ’s social cos s
is no e alua ed. The no el y o he esea ch is ha a e
analysing he concep o social cos s, i is assessed whe he
one o he social cos s - he es ablishmen o he Regis e o
Sel -excluded people om gambling had - an impac on he
income o he gambling sec o .
The gambling sec o has been mainly analysed by
esea che s in he ollowing espec s: he social cos s o he
gambling sec o o socie y (Walke & Ba ne , 1999; G inols,
2004; Blaszczynski e al., 2004; Walke , 2008; Co yn e al.,
2008; Philande , 2013; Walke , 2013; Walke & Sobel, 2016;
Chalaguine, 2018; Sol e ino e al., 2018), bene i s o he
gambling sec o o he s a e economy (G inols, 2004; Walke
& Jackson, 2013; Chalaguine, 2018), axa ion sys em o he
gambling sec o (Co yn e al., 2008; Ala ie & Ingelman,
2008; G ebliauskas, 2009; Philande , 2013; Walke &
Hodges, 2018), public gambling policy (G ebliauskas, 2011),
he impac o gambling on pe sonal bank up cy (Boa dman &
Pe y, 2007), gambling impac on c iminali y (Walke , 2008;
Walke , 2010; Fiedle , 2013), esponsible gambling
(Blaszczynski e al., 2004; Walke e al., 2014).
The objec o his a icle is social cos s o gambling sec o
in Li huania. The aim o he esea ch is o e alua e he change
o gambling sec o ’s gambling g oss e enue acco ding o he
es ablished igh o submi a eques o sel -exclude om
gambling since May 1, 2017. The scien i ic p oblem o he
a icle is how o de ine and e alua e social cos s o gambling
sec o . The asks o he a icle a e: 1) o p esen he concep ion
o he social cos s; 2) o analyse connec ion be ween
gambling g oss e enue change and social cos s in Li huania.
The analysis o scien i ic li e a u e used o heo e ical
pa . The s a is ical da a o Eu os a and Gaming Con ol
Au ho i y unde he Minis y o Finance o he Republic o
Li huania a e used o analy ical pa . G aphical analysis,
pai ed co ela ion analysis and linea eg ession analysis
me hods a e used o analyse and p esen he esul s o he
esea ch.
The Di icul Concep ion o Social Cos s o
Gambling
Acco ding o Walke and Sobel (2016), gambling is a
ield whe e social and economic impac s should be analysed
oge he . In his case, social gambling analysis impac s
economical gambling analysis because nega i e long- e m
gambling consequences (which a e mos ly ela ed o
diso de ed gamble s) like c ime, bank up cy, heal h and
o he p oblems (Walke & Sobel, 2016), - social cos s, ha e
in luence on gambling sec o ’s economical e alua ion
(Walke & Ba ne 1999). As claimed by G ebliauskas
(2009) „P o iding no mal quali y en e ainmen se ices
wi h nega i e ex e nali ies is gambling indus y’s ac i i y”.
The e o e, o ganizing o gambling ac i i y causes nega i e
ex e nal e ec s (ex e nali ies) – addi ional social cos s o
socie y o i s nega i e consequences.
Seeking o ec i y such ma ke impe ec ions like
ex e nali ies, s a e can a ec ma ke di ec ly by becoming
pa icipan in he ma ke o indi ec ly by de e mining
egula ions, axes e c. When ma ke con ains ex e nali ies o
social wel a e, as a ule, s a e chooses o a ec i indi ec ly
(S anikunas, 2010). The aim o de e mining new egula ions
and axes is o change business beha iou and o make
business inco po a e nega i e ex e nali ies in o
p oduc /se ice cos (Zickiene, 2007).
A. C. Pigou was he i s economis which o e ed o use
axes like a ool o co ec ma ke impe ec ions, nega i e
(posi i e) ex e nal e ec s. The essence o A. C. Pigou
co ec i e axes heo y: exis ence o nega i e ex e nal
e ec s in socie y means ha company ans e s pa o i s
ac i i y cos s o o he socie y membe s which a e no
pa icipa ing in ha ac i i y, he e o e ax a e should be he
size which is equal o co e nega i e ex e nal e ec s cos s
a he op imum ou pu . In his way axes inc ease ma ginal
cos s and p oduc ion is educed o op imal size (Williams &
Siegel, 2013).
Acco ding o Philande (2013) he main pu pose o
co ec i e axes is o make p i a e companies in e nalize
social cos s which a e caused by hei ac i i ies. This schola
poin ed ou ha ac i i y is economically e ec i e and can
be execu ed i bene i om i is g ea e han p oduc ion cos s
and social cos s summed oge he . Consequen ly, be o e
legalizing ac i i y which ob iously can cause social cos s
o socie y, he s a e should conduc de ail analysis abou
ha ype o ac i i y’s economical e ec i eness (Philande ,
2013).
Walke and Ba ne (1999) poin ed ou ha ex e nal
e ec s appea when one subjec ac ions make in luence o
o he subjec ’s wel a e. Al hough nega i e ex e nal e ec s
a e ela ed o social cos s, howe e his doesn’ p o e ha
all nega i e ex e nal e ec s a e social cos s. These scien is s
poin ed ou ha e en gambling is undoub edly causing
nega i e ex e nal e ec s o socie y, o schola s i ’s s ill
especially impo an o sepa a e echnological ex e nali ies
om pecunia y ex e nali ies (Walke & Ba ne , 1999).
Fo economical pa icipan s echnological ex e nali ies
es ablishes oppo uni y o ans o m p oduc ion cos s in o
p oduc ion e iciency and in his way dis o s e ec i e
dis ibu ion o esou ces. Pecunia y ex e nali ies make
in luence on p ices and weal h dis ibu ion in socie y wi hou
making any eal e ec o socie y wel a e (Walke & Ba ne ,
1999). Ac i i y which could cause di e ences o p ices o
changes o weal h alue o he hi d pa y also could cause
ad an ages and disad an ages, howe e hey do no cause
economical ine ec i eness. The e o e, di e ence be ween
echnological and pecunia y ex e nali ies is ha pecunia y
ex e nali ies do no es ablish ine ec i e dis ibu ion o
esou ces in socie y (Holcombe & Sobel, 2011).
In gambling, o ins ance, i one gamble loses his
money and ano he gamble wins i , o he i s gamble his
e en en ailed pecunia y loss, o he second - gene a ed
p o i , bu o socie y’s wel a e his e en does no make any
impac , weal h was jus edis ibu ed in socie y (pecunia y
ex e nali ies). Howe e , i he i s gamble became
addic ed o gambling and because o ha he los his job and
s a ed his ea men , he s a e has o edis ibu e i s’
esou ces o p o ide ea men , psychologis consul a ions
e c., and ha ’s because nega i e ex e nal e ec s caused by
gambling c ea es addi ional social cos s o socie y
( echnological ex e nali ies).
Inzine ine Ekonomika-Enginee ing Economics, 2020, 31(5), 558–564
- 560 -
Consequen ly, echnological ex e nali ies dis o he
e icien dis ibu ion o esou ces, equilib ium in he ma ke
and in his way c ea e social cos s o socie y. Co ec i e
axes analysed in Pigou ian heo y should be applied only
o adjus echnological ex e nali ies (Co yn e al., 2008).
Philande (2013) e ealed ha he size o gambling
nega i e ex e nal e ec s could be de e mined by unc ion in
which he main unknown is he quan i y o pa hological
gamble s in he socie y. Acco ding o his, gambling ypes
ha make he bigges in luence in de eloping gambling
addic ion should be axed mo e han ypes which make less
impac o addic ion g ow h.
The de ini ion o social cos s has always been
in e p e ed di e en ly by schola s in economics. This
allowed o make di e en conclusions abou he ex en , size
and impac on he economy o social cos s caused by
gambling nega i e ex e nal e ec s. Walke (2013) paid a lo
o a en ion o economic analysis o he de ini ion o social
cos s in he con ex o gambling. In his opinion, social cos s
in gambling a e gene a ed by psychological o emo ional
ac o s ( ea men cos s) c ea ed by edis ibu ion o weal h
be ween indi iduals, also he cos o eco e y and cos o
de aul . The e o e, social cos s should no be compu ed by
he alue o unco e ed loans (Walke , 2013). In Walke
(2008) opinion, in economics social cos s mean a dec easing
en i e social weal h caused by ce ain ac ions o go e nmen
policy.
Acco ding o Walke (2013), social cos s indica e he
diminishing eal social weal h in socie y, bu he dec ease o
weal h should no be solely a ibu ed o he dec ease o
mone a y esou ces. Fo example, i he ac i i y ha ms a
ce ain g oup o he socie y and does no bene i any
membe o he socie y, he social cos s will be equal o he
sum o he eal weal h losses o each ha med membe o
socie y. On he o he hand, i an ac i i y is ha m ul o some
membe s o socie y, bu as a esul i bene i s o he membe s
o socie y, and i he bene i s o socie y a e equal o he
ha m, i means ha balance o eal social weal h has no
been changed and such ac i i y does no cause any bene i s
o social cos s o he socie y. In his case, edis ibu ed social
weal h om one membe o socie y o ano he does no
change he o al amoun o eal social weal h in socie y
(Walke , 2013).
This concep o social cos s is based on he Pa e o
op imali y heo y, which s a es ha changes in he s a e
inc ease social wel a e when hese changes bene i s a leas
one membe o socie y wi hou ha ming anyone a he same
ime. Pa e o op imum is achie ed when he e is no
al e na i e me hod o u ilizing esou ces (imp o ing he
posi ion o a leas one membe o socie y wi hou ha ming
a leas one o he socie y membe ) (Walke , 2013). The e is
no consensus be ween scien is s wha nega i e ex e nali ies
should be conside ed as he economic social cos caused by
gambling. Douglas M. Walke economic concep o social
cos s could be one o he mos app op ia e me hods o
iden i y gambling sec o ’s social cos s o socie y.
A e summa izing esea ches by many scien is s i can
be concluded ha he ollowing cos s c ea e he economic
social cos s o gambling: cos s o legal se ices and law
en o cemen agencies, cos s o ec ui men , cos s o
ea men , cos s o ou s anding loan eco e y and o he
go e nmen expendi u e (educa ion, esea ch, p e en ion,
e c.). Technologies ha e huge impac on gambling sec o ,
so concep ion o social cos s o gambling will be de eloping
and new ypes o social cos s o gambling could appea in
u u e (Walke & Hodges, 2018). No iceable, ha economic
social cos s o gambling should be analysed conside ing he
ha m o socie y caused by gambling addic ion and only
nega i e echnological ex e nali ies should be e alua ed.
Connec ion be ween Gambling Sec o ’s
Gambling G oss Re enue Change and Social
Cos s in Li huania
Gambling has been legalized in Li huania since July 1,
2001. Be o e legalizing gambling in Li huania he posi i e
and nega i e aspec s o his ac i i y we e no analysed, also
gambling was no axed in ela ion o he social cos s i
gene a es. Al hough he e is a special co ec i e ax o
gambling in Li huania, howe e since he beginning o
legaliza ion no analysis o his sec o economic impac has
been ca ied ou .
In o de o e alua e social cos s o gambling o he s a e
i is impo an o iden i y he numbe o addic ed gamble s
and o de e mine he le el o public expendi u e spen o
comba wi h gambling addic ion and i s consequences.
Fu he in his a icle i will be analysed whe he he e is a
connec ion be ween gambling g oss e enue change in
Li huania and inc easing quan i y o eques s o sel -exclude
om gambling since May 1, 2017.
F om May 1, 2017 amendmen s o he Gaming Law o
he Republic o Li huania („Gaming Law”) en e ed in o
o ce. Since hen e e y pe son has he igh o submi a
eques o sel -exclude om gambling. In o de o
implemen he amendmen s o he Gaming Law, a Regis e
o Sel -excluded people om gambling („ he Regis e ”) was
es ablished. Seeing ha all he unds o he es ablishmen
o he Regis e we e p o ided om he s a e budge , we can
conclude ha all es ablishmen cos s a e social cos s o
socie y caused by inc eased numbe o addic ed gamble s in
Li huania. Since economic social cos s o socie y should be
e alua ed h ough he ha m caused by he de elopmen o
gambling addic ion, we assume ha e e y pe son on he
Regis e is addic ed o gambling.
A e analysis o he da a we can see a change in
gambling g oss e enue („GGR”) and a change in he
numbe o alid eques s o sel -exclude om gambling
since May 1, 2017 (see Figu e 1).
As we can see un il 2019 Q1 he numbe o alid
eques s o sel -exclude om gambling („ eques s”) has
been g owing s eadily and om 2019 Q1 he numbe o
alid eques s is almos unchanged. The GGR o gambling
ope a o s has also been g owing s eadily since 2017 Q2
excep o a empo a y decline in e enue o se e al
qua e s. As demons a ed he g owing numbe o eques s
didn’ had a clea e ec on GGR o gambling ope a o s (all
ypes o gambling we e analysed). A e pai ed co ela ion
analysis o alid eques s and GGR o sepa a e ypes o
gambling ( om Q2 2017 o Q4 2019) he esul s did no
p oduce a signi ican nega i e co ela ion, so i canno be
concluded ha he e is a di ec nega i e impac o eques s
o GGR o sepa a e ypes o gambling.
I e a Simbe o a, Rima Zi kiene, I ena Mace inskiene, G e a Geneliene. The E alua ion o Gambling Sec o ’s…
- 561 -
Figu e 1. Change in GGR and in he Numbe o Valid Reques s o Sel -Exclude om Gambling Since May 1, 2017
Sou ce: Au ho s‘ es ima ion based on gambling ope a o s 2017-2019 pe o mance epo s submi ed in Gaming Con ol Au ho i y unde he Minis y o
Finance o he Republic o Li huania web page.
When analysing GGR changes o gambling ope a o s
we also need o ake in o conside a ion he cu en economic
si ua ion in he coun y. Du ing he conside ed pe iod ( om
Q2 2017 o Q4 2019), he coun y’s g oss domes ic p oduc
(GDP) g ew s eadily, e lec ing he coun y’s o e all
economic g ow h. Wi h he g ow h o GDP, he income o
he popula ion inc eased, he quali y o li e imp o ed, and
people could spend mo e on en e ainmen , including
gambling. As people spend mo e money on gambling,
gambling ope a o s’ GGR is g owing, bu unlike e enue
g ow h he inc ease in he numbe o addic ed gamble s is
no immedia ely no iceable, so he nega i e impac on
e enue may be delayed o no be so signi ican as o be seen
in co ela ion analysis due o he coun ies g owing
economy.
In o de o e alua e GGR o gambling sec o and o
o ecas GGR change, cu en economic si ua ion in he
coun y was aken in o accoun he e o e GGR and GDP
dependency was analysed. In his way we a e seeking o
de e mine i acco ding o o al economic g ow h, GGR o
gambling ope a o s was g owing a he same pace ha we
could o ecas acco ding o GDP g ow h.
In o de o de e mine he exis ence o a s ochas ic
ela ionship be ween GGR and GDP, a pai ed co ela ion
analysis (since 2008 o 2017) was pe o med and a co ela ion
coe icien o 0.946286 was ob ained (see Table 1).
Table 1
Co ela ion be ween GGR and GDP
Yea
GGR mill. EUR
GDP mill. EUR
2008
70,4
32696.3
2009
49,6
26934.8
2010
44,6
27,955.3
2011
52
31,233.7
2012
60,4
33,331.7
2013
68
34,985.0
2014
79,4
36,544.8
2015
85,6
37,321.8
2016
90,9
38,893.4
Co ela ion
coe icien ,
0,946286
Sou ce: Au ho s‘ es ima ion based on s a is ical da a submi ed in
Eu os a web page and gambling ope a o s 2008–2016 pe o mance
epo s submi ed in Gaming Con ol Au ho i y unde he Minis y o
Finance o he Republic o Li huania web page
Acco ding o he calcula ed co ela ion coe icien
alue i can be concluded ha he e is a s ong connec ion
be ween GGR and GDP. The signi icance o he co ela ion
coe icien alue is e i ied by compa ing sample s a is ics
wi h he c i ical alue o sample s a is ics
c i ical
)7;05,0(
. Since
we ob ained ha ˃
c i ical
)7;05,0(
, we can conclude ha he
co ela ion coe icien = 0.946286 is signi ican and he e
is a s ochas ic ela ionship be ween GGR and GDP.
The e o e we use eg ession analysis o calcula e
coe icien s o linea eg ession equa ion (𝑦 =
−59,461575 + 0,00378815𝑥) by which wi h he p ojec ed
GDP amoun o nex yea we can ind he expec ed a e age
GGR and a g aph o he cu e which bes ep esen he
o ali y o s a is ical poin (see Figu e 2).
An analysis o he g aph shows ha a e e alua ion o
GDP o 2017 (42269.4 mill. Eu ), GDP o 2018 (45264.4
mill. Eu ) and GDP o 2019 (48302.3 mill. Eu ), GGR o
gambling sec o in 2017–2018 didn’ g ow as much as could
be p edic ed acco ding o GDP g ow h and economic
si ua ion o he coun y.
Acco ding o he coun y’s g owing economy and
ob ained linea eg ession equa ion he gambling sec o
GGR in 2017 had o each 100.66 mill. Eu ., in 2018 – 112
mill. Eu . and in 2019 – 123.52 mill. Eu . A e analysing a
da a ( om 2017 o 2019) we ge ha GGR o gambling
ope a o s in 2017 was lowe by 3.30 mill. Eu , in 2018 was
lowe by 12.57 mill. Eu , and in 2019 lowe by 10.90 mill.
Eu . I can be concluded ha while he income o he
popula ion was inc easing and mo e income could be spen
on gambling, he e enue om he gambling sec o had a
highe g ow h po en ial in e ms o o al economic g ow h
in Li huania and he oppo uni y o ill a eques om May
1, 2017 may ha e had an in luence o a slowdown in GGR
g ow h.
0
1000
2000
3000
4000
5000
6000
0
5
10
15
20
25
30
35
2017 Q2. 2017 Q3. 2017 Q4. 2018 Q1. 2018 Q2. 2018 Q3. 2018 Q4. 2019 Q1. 2019 Q2. 2019 Q3. 2019 Q4.
GGR mill. eu . (all gambling ypes) Valid eques s, pcs.
Inzine ine Ekonomika-Enginee ing Economics, 2020, 31(5), 558–564
- 562 -
Figu e 2. Model o Expec ed A e age GGR
Sou ce: Au ho s‘ es ima ion
Conclusions
So a he e is no consen among scien is s wha
nega i e ex e nali ies should be conside ed as he economic
social cos s caused by gambling. As a consequence his
allowed o make di e en conclusions abou he impac o
social cos s caused by gambling nega i e ex e nali ies o he
economy.
A e scien i ic li e a u e analysis i can be concluded
ha i e ypes o cos s c ea e he economic social cos s o
gambling: cos s o legal se ices and law en o cemen
agencies, cos s o ec ui men , ea men , ou s anding loan
eco e y and o he go e nmen expendi u e (educa ion,
esea ch, p e en ion, e c.). No ewo hy, ha economic
social cos s o gambling should be analysed conside ing he
ha m o socie y caused only by gambling addic ion and jus
nega i e echnological ex e nali ies should be e alua ed in
esea ches. In o de o e alua e eal gambling impac on
economy, u he esea ches abou social cos o gambling,
should be execu ed.
Analysis showed ha g owing numbe o eques s o
sel -exclude om gambling didn’ had a clea e ec on
GGR o gambling ope a o s, because pai ed co ela ion
analysis o eques s and GGR o sepa a e ypes o gambling
( om Q2 2017 o Q4 2019) did no p oduce a signi ican
nega i e co ela ion, as a esul , i canno be concluded ha
he e is a di ec nega i e impac o eques s o GGR o
sepa a e ypes o gambling. Howe e , he inc ease in he
numbe o addic ed gamble s is no so immedia ely
no iceable so he nega i e impac on GGR may be delayed
o no be so signi ican as o be seen in co ela ion analysis
due o he coun ies g owing economy.
Acco ding o he calcula ed co ela ion coe icien
alue analysis e ealed ha he e is a s ong connec ion
be ween GGR and GDP. By ob ained linea eg ession
equa ion wi h he p ojec ed GDP amoun o nex yea we
can ind he expec ed a e age GGR (model o expec ed
a e age GGR). Da a analysis showed ha GGR o gambling
ope a o s in 2017 was lowe by 3.30 mill. Eu , in 2018 was
lowe by 12.57 mill. Eu , and in 2019 lowe by 10.90 mill.
Eu . I can be concluded ha GGR om he gambling sec o
had a highe g ow h po en ial in e ms o o al economic
g ow h in Li huania and he oppo uni y o submi a eques
om May 1, 2017 may ha e had an in luence o a slowdown
in GGR g ow h, bu in o de o e alua e long- e m impac
u he esea ches should be execu ed.
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