Slot Barns by whatever elegant label remove jobs from the local economy by absorbing discretionary income.
“People will spend a tremendous amount of money in casinos, money that they would normally spend on buying a refrigerator or a new car. Local businesses will suffer because they lose customer dollars to the casinos.”
–Donald Trump, interviewed by the Miami Herald.
According to one estimate, each slot machine permanently removes one job from the local economy which makes logical economic sense when one considers the daily revenue of each machine.
And each of the "I've got mine" crowd defends their revenue with ironic arguments of the same community degradation they themselves have caused.
Since Tribal Slot Barns fail to pay their fair share of taxes, as would a commercial Slot Barn, the arguments are even more disingenuous.
State view: How does state-sponsored gambling affect Minnesota?
The job-killing truth about expanding gambling in Minnesota
Minnesota’s 2010 election was all about improving the economy, creating jobs and solving the state’s $6 billion budget shortfall. With that focus, it was surprising so many gubernatorial and legislative candidates promoted the expansion of gambling as an answer to state economic woes.
The truth is that a state-run casino at the Mall of America or MSP Airport, slot machines in bars, “racinos” at Canterbury Park or Running Aces race tracks, or other gambling expansion proposals actually would kill jobs in greater Minnesota, increase government costs and provide far less in state revenues than proponents recklessly claimed.
Tribal-government gambling has provided a significant jobs boost to greater Minnesota. With 18 casino/resorts throughout the state, tribal gaming is among the top 12 employers in the state. A 2009 study commissioned by the Minnesota Indian Gaming Association found tribal gaming and tribal governments employ more than 16,000 workers in rural Minnesota, with an annual payroll of $420 million. The collective economic impact in greater Minnesota from tribal gaming and spending is more than
$1.5 billion, accounting for more than 30,000 jobs and $882 million in family income.
Treasure Island Resort and Casino, owned and operated by the Prairie Island Indian Community, is the largest employer in Goodhue County, providing
1,500 well-paying jobs and spending more than $38 million annually with local businesses and vendors. More than 200 new businesses were created in the region over the past two decades to support the casino’s operations.
With most gambling expansion proposals focused on the Twin Cities, the impact on rural communities would be devastating. Gambling expansion wouldn’t generate additional economic activity but would simply shift jobs, spending, investment and local tax revenues away from rural communities. A 2005 study indicated that Goodhue County alone would lose nearly 700 jobs if 4,000 new slot machines were allowed in the Twin Cities. Many rural areas in Minnesota suffer from higher unemployment rates than the state as a whole, with less capacity to recover from job losses. Expanding gambling would only expand that jobs gap.
The 2009 Minnesota Indian Gaming Association study found that in rural Minnesota in 2008 tribal governments spent $130 million to provide employee health care, spent $138 million in casino and tribal infrastructure projects and spent
$268 million on local goods and services. If gambling is expanded in the Twin Cities, the certain loss of jobs, local tax revenues, infrastructure investment and economic activity in greater Minnesota would result in increasing demands on the state budget for local aid, unemployment aid, subsidized health care, job retraining and other services. This increase in state spending is the exact opposite budget outcome gambling expansion proponents try to sell to the public.
Proponents of gambling expansion consistently overstate projected tax revenues, as states across the nation are learning. Indiana’s two racinos unsuccessfully sought significant tax breaks from the state after revealing losses of $50 million since 2008. In New Mexico, five struggling racinos sought local and state tax breaks and the Ruidoso Downs racino has operated in the red since 2003. Casinos and racinos across the country, including Minnesota’s tribal casinos, have suffered significant losses during the current recession.
Minnesota’s tribal casinos already generate significant tax revenues:
$150 million in federal and state withholding taxes in 2007, including an estimated
$18 million in state income taxes and tens of millions in state sales taxes generated by associated economic activity. Proponents of state-sponsored gambling expansion not only have overstated revenue estimates they have failed to subtract the loss of state tax dollars resulting from reduced tribal gaming activity.
Victoria Winfrey is president of the Prairie Island Indian Community Tribal Council.
And each of the "I've got mine" crowd defends their revenue with ironic arguments of the same community degradation they themselves have caused.
Since Tribal Slot Barns fail to pay their fair share of taxes, as would a commercial Slot Barn, the arguments are even more disingenuous.
State view: How does state-sponsored gambling affect Minnesota?
The job-killing truth about expanding gambling in Minnesota
Minnesota’s 2010 election was all about improving the economy, creating jobs and solving the state’s $6 billion budget shortfall. With that focus, it was surprising so many gubernatorial and legislative candidates promoted the expansion of gambling as an answer to state economic woes.
The truth is that a state-run casino at the Mall of America or MSP Airport, slot machines in bars, “racinos” at Canterbury Park or Running Aces race tracks, or other gambling expansion proposals actually would kill jobs in greater Minnesota, increase government costs and provide far less in state revenues than proponents recklessly claimed.
Tribal-government gambling has provided a significant jobs boost to greater Minnesota. With 18 casino/resorts throughout the state, tribal gaming is among the top 12 employers in the state. A 2009 study commissioned by the Minnesota Indian Gaming Association found tribal gaming and tribal governments employ more than 16,000 workers in rural Minnesota, with an annual payroll of $420 million. The collective economic impact in greater Minnesota from tribal gaming and spending is more than
$1.5 billion, accounting for more than 30,000 jobs and $882 million in family income.
Treasure Island Resort and Casino, owned and operated by the Prairie Island Indian Community, is the largest employer in Goodhue County, providing
1,500 well-paying jobs and spending more than $38 million annually with local businesses and vendors. More than 200 new businesses were created in the region over the past two decades to support the casino’s operations.
With most gambling expansion proposals focused on the Twin Cities, the impact on rural communities would be devastating. Gambling expansion wouldn’t generate additional economic activity but would simply shift jobs, spending, investment and local tax revenues away from rural communities. A 2005 study indicated that Goodhue County alone would lose nearly 700 jobs if 4,000 new slot machines were allowed in the Twin Cities. Many rural areas in Minnesota suffer from higher unemployment rates than the state as a whole, with less capacity to recover from job losses. Expanding gambling would only expand that jobs gap.
The 2009 Minnesota Indian Gaming Association study found that in rural Minnesota in 2008 tribal governments spent $130 million to provide employee health care, spent $138 million in casino and tribal infrastructure projects and spent
$268 million on local goods and services. If gambling is expanded in the Twin Cities, the certain loss of jobs, local tax revenues, infrastructure investment and economic activity in greater Minnesota would result in increasing demands on the state budget for local aid, unemployment aid, subsidized health care, job retraining and other services. This increase in state spending is the exact opposite budget outcome gambling expansion proponents try to sell to the public.
Proponents of gambling expansion consistently overstate projected tax revenues, as states across the nation are learning. Indiana’s two racinos unsuccessfully sought significant tax breaks from the state after revealing losses of $50 million since 2008. In New Mexico, five struggling racinos sought local and state tax breaks and the Ruidoso Downs racino has operated in the red since 2003. Casinos and racinos across the country, including Minnesota’s tribal casinos, have suffered significant losses during the current recession.
Minnesota’s tribal casinos already generate significant tax revenues:
$150 million in federal and state withholding taxes in 2007, including an estimated
$18 million in state income taxes and tens of millions in state sales taxes generated by associated economic activity. Proponents of state-sponsored gambling expansion not only have overstated revenue estimates they have failed to subtract the loss of state tax dollars resulting from reduced tribal gaming activity.
Victoria Winfrey is president of the Prairie Island Indian Community Tribal Council.
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