Cost associated with increased gambling outweighs benefits

In the Spotlight: Cost associated with increased gambling outweighs benefits
Journal Star

Should Illinois' legalized gambling industry be expanded via the addition of five new casinos, plus slot machines at race tracks and airport terminals?

This hot button issue has generated considerable discussion throughout the state in recent months. A primary argument in favor of the expansion centers on the possible generation of additional revenue for needed capital projects such as roads and schools.

However, there is a pronounced downside to adding more gambling venues in Illinois. A noted authority on the adverse effects of legalized gambling - John W. Kindt, professor of business administration at the University of Illinois - has done extensive research on the economic impact of gambling both in Illinois and elsewhere. His view on the effects of gambling was set forth in an article, "Playing The Numbers: The Economic Impact of Legalized Gambling." He states:

1. The social costs of legalized gambling far outweigh any benefits.

2. Traditional businesses in areas where casinos are located incur increased personnel costs due to rising absenteeism and declining productivity.

3. Economic benefits created diminish rapidly, and in many cases casinos actually stall regional activity.

4. Gambling revenue substitutes for, rather than augments tax support of education, leading to decreased educational funding in "real" dollars.

5. In Illinois no more than 35 percent of casino revenues are returned to state and local governments and at a minimum two-thirds of the money lost by Illinois gamblers goes back to Las Vegas.

Kindt concludes, "Simply put, you don't have to expand gambling in Illinois to raise more tax money. Just raise the taxes on casinos in operation, and you'll get revenues right away."

Gov. Quinn will be taking the high ground if he vetoes Illinois Senate Bill 744.

E. Garrett Stone

Peoria