"Casino" Gambling: No Economic Growth, Jobs Lost

Hold that bet, Mr. Cuomo


Governor Cuomo, normally so thoughtful and disciplined, seemed a bit more like a gambler himself when he said last week that New York needs to consider the further legalization of casinos.

Gambling is here already, he was saying. And it's in neighboring states, too, notably Connecticut and New Jersey.

So why not double down here, he was suggesting. In a for a dime, in for a dollar. Such are the possibilities to which he's now open.

Mr. Cuomo does make the point that the days of saying that there's no place for government-supported gambling are past.

"It's really not an issue anymore of 'Well, if we don't officially sanction it as a government, it's not going to happen,'" he says. "It is happening."

True enough. Upstate New York has five Indian-operated casinos. There are slot machines at eight, soon to be nine, of the state's racetracks. A hastily passed 2001 law, and a subsequent court decision upholding that law, long ago made a mockery of the state constitution's ban on slot machines.

The result is that New York gets substantially more of its revenue (3 percent) than the national average (2.4 percent) from gambling, according to the Rockefeller Institute of Government. And now Mr. Cuomo has made it clear that he's at least open to the idea of amending that constitution to remove any obstacles to commercial, non-Indian casinos.

Staunch opponents of gambling would, of course, urge the governor to fold. But all New Yorkers would be wise to urge him to pause. It's time to ask again what removing constitutional restrictions to casinos would mean for New York. How much more gambling would be too much?

That puts a burden on the forces -- particularly the owners of the so-called racinos and their slot machines -- urging the governor to support a constitutional amendment to allow more casinos.

Let's await the economic impact study the racino operators plan to give Mr. Cuomo next month. Let's compare previous research on the economic benefits of casinos with the prediction by Assemblyman Gary Pretlow, D-Westchester County, chairman of the Racing and Wagering Committee, that the further legalization of casinos would be an economic boon for New York.

There's not much evidence supporting the notion that casinos pay off that way, certainly not over the long term. Typically, they'll produce a notable increase in revenue in their first year or two of operation before leveling off sharply, says Robert Ward, deputy director of the Rockefeller Institute.

"The casino industry does not have an impact on economic growth at the state level," concludes a 2007 study by economics professors Douglas Walker of the College of Charleston and John Jackson of Auburn University. "The average state should not expect any long-term growth effects from legalizing casino gambling."

That, however, fails to consider the costs of casino gambling. Research by John Kindt, a business professor at the University of Illinois, concludes that nationwide, 1.5 jobs are lost for every job casinos create.

Maybe, then, five casinos already, along with slot machine at the racetracks, are quite enough. Maybe the governor who's open to amending the constitution to allow more casinos should think again.


THE ISSUE:

The governor considers allowing more casinos.

THE STAKES:

Is that what's best for New York?