Casino debate ignores dangers of state gambling addictions

Examiner Local Editorial: Casino debate ignores dangers of state gambling addictions
Examiner Editorial

Should the Maryland legislature allow Prince George's County to build a Las Vegas-style casino at National Harbor, in addition to the five other statewide gambling venues already approved in 2008? Lost in the current debate are fundamental issues that will face state lawmakers and Maryland voters eventually, if and when the controversial measure passes.

One concerns the proper role of government. State and county officials view the proposed $1 billion casino as just another revenue source they can tap to fund education, health care, public safety and other priorities. Maryland already collects 33 percent of all revenue from slots, and legislators want to increase their share to 48 percent. Yet this creates a conflict of interest for state government that simultaneously exercises the role of regulating games of chance to protect consumers.

We hear often of the dangers of gambling addiction on ordinary people, but it also affects government officials. When they become dependent on gambling revenues to balance their budgets, their interest in keeping the spigot open can tempt even the most trustworthy to slacken in their supervisory role. To the extent that state regulators aggressively enforce the law, they risk reducing the same revenue stream that funds their paychecks.

Another problem is that gambling is a zero-sum economic activity. It does not create wealth, but rather redistributes it, mostly from gamblers to wealthy casino owners. This is why, in December 2011, Maryland Comptroller Peter Franchot refused to sign off on a $169 million plan to lease slot machines at the Maryland Live casino set to open in June at Arundel Mills mall, harshly criticizing what he called "a predatory scheme to separate working people from money they cannot afford to lose."

Former Delegate and casino opposition leader Gerron Levi agrees. He presented legislators with an anti-gambling petition signed by more than 2,000 county residents and 74 civic associations, churches and non-profits, who warn of adverse effects on nearby neighborhoods if National Harbor becomes Atlantic City on the Potomac. But Prince George's residents won't have the final say on a project that directly affects them, because an advisory opinion from Attorney General Doug Gansler called a provision allowing county voters to effectively veto the casino "constitutionally impermissible."

County Executive Rushern Baker, who was against the casino before he was for it, claims that a casino will generate jobs and capture revenue from out-of-state gamblers. He is correct, but this "easy" money comes at a high cost for a county still struggling to emerge from the shadow of its more affluent neighbors.