Dan Lawlor: Casinos are a Bad Bet for Rhode Island

Dan Lawlor: Casinos are a Bad Bet for Rhode Island

Daniel Lawlor, GoLocalProv Guest MINDSETTER™

The Republican Primary in Florida brought to light much about that state's high unemployment rate, and some mention of the struggles in its cities for quality education. Similar to nearby Massachusetts, the lure of casino revenue is a hot topic in Florida, as it is here in RI. Yet, gambling seems a questionable economic path. Mississippi has Casino gambling - and on so many levels ranks among the last in quality of life surveys among the states.

As of fall 2011, Mississippi and Florida had unemployment rates of 10.5 and 10% respectively. Those numbers were despite an attractive climate, tourism, and lower tax rates. For the record, as of 2005, Mississippi's overall high school graduation rate was somewhere around 61%.ambling doesn't solve long standing issues of poor economy, limited skills, and corruption.

We hear politicians wail about casino gambling in Massachusetts. We hear about the need to allow smoking inside state -run gambling facilities - of the necessity to turn the state facilities into full-fledged casinos. Aside from the hypocrisy of saying it’s okay for the state to operate a gambling facility but not the Narragansett tribe, in either case, it's poor economic strategy!

Won’t Help Old Mill Towns
As proposals are bandied about for expanding state-run gambling, I think of some of the forgotten cities in this fine state, places like Woonsocket, Central Falls, and West Warwick. Those cities, like Lawrence or Holyoke in Massachusetts, developed out of the mill industry. Without those industries, these cities are struggling. Expanded gambling in Lincoln or Newport won't reverse overall unemployment, raise graduation, or diversify the economies of those old mill towns. The state's continuing cuts to housing and higher education programs won't help these cities.

I am at times perplexed by the economic state of Woonsocket. It is the headquarters of CVS, a major retailer. Certainly, couldn't some of the storefronts of downtown Woonsocket been a base for some CVS operations? Wouldn't the move of a corporate headquarters downtown spur restaurants, clothing shops, gadget stores, art galleries - perhaps even a hotel or two? Why is CVS' headquarters on the outskirts of the city - I understand the ease of highway access, but at the same time, it seems like a poor design for a city's growth.

Downtown Woonsocket is full of empty store fronts and beautiful architecture. When Woonsocket has a full rebirth, it will be dynamic. There are classic stand-bys - the Stadium Theater and Chan's. There are new comers -the Museum of Work and Culture and Riverzedge. These organizations help create a buzz. Large corporate citizens should be engaged to mutually benefit the city and state. Building economies off existing assets - and creating new ones - will spur innovation. Gambling doesn't seem to have the same positive effects on a region as a diverse economy.

Not a Solution
Mississippi still struggles with education and economics, despite its casinos. Bridgeport CT still struggles with education and economics, despite having Mohegan Sun and Foxwoods just down the road. Florida's low tax rate did not prevent it from experiencing recession, and I doubt that a Casino in Miami or Orlando will stave off the current one. Underlying problems - including education quality and lack of a diverse economy - have caused that populous state with nice weather to suffer challenges of unemployment, much as we do here.

Some have proposed gambling casinos as a solution to Florida's crisis - as many propose gambling revenue to be Rhode Island's cure all (or the cure all for Fall River). Instead of expanding gambling, how about expanding job training, have streamlined, fair small business taxes, and work to allow as many RI's as possible to become local entreprenuers? How about engaging corporations to become more strategic partners in developing the city, thus contributing to their own quality of life?

Corporate or State Run gambling does not seem to improve the lot of most New England mill towns. Being strategic with the assets already available in each city just might.