What is the relationship between direct, indirect and induced components of the multiplier effect?
Indirect: Increase in expenditure/income as a result of construction or event (eg. Income received by suppliers and employees of construction company or event organisers)
Induced: Increase in expenditure/income received by suppliers/employees of company supplying the construction suppliers or event organisers
Use Value: Value placed on actual or intended use of the investment (ticket purchase, consumer surplus – the amount greater than ticket price willing to pay)
Non-Use Value: Relates to the value placed on the “existence” of the investment (identify teams as “civic totems”, beneficial to teams even if they don’t use).
Sport investment is foreign and lacks structural linkages to local economy required for economic growth. Tie in clauses with suppliers that restrict spillover. Compounded if athletes live elsewhere. If local expenditure transfer not linked to activities locally articulated then can have negative effect. Money goes into these sports teams and stars (injection) however the athletes can leave and spend the money elsewhere (leakage)
Why is gambling important to state government revenues in Australia?
Gambling taxation revenue nearly doubled in ten years (just over 10% average of state/territory government tax revenue). Governments are promoters of gambling in the fact that they provide injections into the government, allowing them to spend the money in other areas of the economy. However the trade-off may come in the form of leakages caused by funding spent to help problem gamblers.
How is technology impacting on sport gambling?
Rapid impact on delivery and nature of gambling services; internet and interactive TV allow delivery of wide range of gambling opportunities into the home and stadium. People at risk of gambling problem more likely to use technology for purchases or use mobile phone technology. Technology makes it easier to gamble, meaning it could create new problem gamblers as there is the potential to put an electronic gaming terminal in everybody’s pockets and living rooms.
How does a lack of integrity in sport wagering potentially impact on sports?
Negative external costs on sports industry – loss of confidence in integrity will make sport less attractive, lower attendance demand and value of media rights and sponsorship. Essentially it will lower the overall demand in sports if the integrity in sports betting is compromised, meaning large economic losses and costs for those individuals and organisations which rely on sports to get by.