The Gambling Industry only survives by creating NEW Gambling Addicts.
Gambling Addicts have the lowest rate of self-referral and the highest rate of SUICIDE,
the Gambling Industry's DIRTY LITTLE SECRET.
Why would government betray its promise to promote the Common Good by preying on its citizens?
Studies: Casinos bring jobs, but also crime, bankruptcy, and even suicide
Posted by Dylan Matthews on October 30, 2012
While the presidential race is taking up much of the oxygen this cycle, many states have important ballot initiatives on the ballot next Tuesday as well.
Maryland is considering a proposal that would allow table games at the state’s five casinos, as well as approve the creation of a sixth in Prince George’s County, near DC. The proposal is touted as a way to fund education — for which the funds it generates will be earmarked — and, ironically, the opposition to it is mainly funded by owners of rival casinos. But economic research concerning casinos suggest that members of communities with casinos should be wary.
Melissa Kearney, an economist at
the University of Maryland, released a literature review in
2005 summarizing work on gambling done to date. A study by
Maryland’s William Evans and Julie Topoleski that focused on Indian casinos
found that they created a significant number of jobs. The ratio of jobs
available to adults increased, on average, by 5 percent. This in turn lead to a
2 percent decline in mortality, as residents’ economic conditions improved.
Other work backs up the crime
finding. The Baylor’s Earl Grinols, University of Georgia’s David Mustard, and
the University of Illinois’ Cynthia Dilley found that
8 percent of crime in counties with casinos was attributable to their presence,
a crime increase that cost residents, on average, $65 a year.
And the bankruptcy finding has
been replicated as well. The St. Louis Fed’s Thomas Garrett and Mark Nichols found that
Mississippi riverboat gambling increases bankruptcies not just in Mississippi,
but in counties outside the state where many residents gamble in Mississippi.
The effect was largest in neighboring states, with the Mississippi casinos
responsible with a 0.24 percentage point increase in bankruptcy filings.
Interestingly, other casinos — such as Las Vegas, Atlantic City, and so forth —
didn’t have statistically significant effects on other areas’ bankruptcy
rates.
Unsurprisingly, legalized
gambling also exacerbates problems with gambling addictions. The National
Gambling Impact Study Commission found that
having a casino within 50 miles doubles one’s likelihood to become a problem
gambler. That suggests that the new DC-adjacent Maryland casino could create
major addiction problems here in the District.
The evidence on casino gambling’s
distributional impact is much weaker than that concerning state lotteries, but
there is extensive
evidence that the latter amounts to a regressive tax, given that lottery
ticket purchasers are disproportionately poor. But some
evidence — admittedly from industry groups — suggests that casino-goers are
richer than the average American, so the story could be quite different than
with lotteries.
But as with the liquor industry,
much if not most of the gambling industry’s revenue come from addicts. Grinols
estimates
that 52 percent of revenue at the typical casino comes from problem gamblers,
while an Ontario study put
the figure at 35 percent and a Louisiana one at
42 percent. So even if gambling takes more money from the middle-class than the
poor, it largely takes that money from middle-class people who aren’t exactly
rationally willing to spend it.
Casinos aren’t even a particularly good source of tax revenue. Kearney notes that a number of studies have found that Indian casinos cannibalize business at nearby restaurants and bars, and in so doing actually reduce state tax revenue.
Like most ballot proposals, Maryland’s question 7 involves tradeoffs, and one could reasonably argue the benefits in terms of jobs created and education funded outweigh the costs in terms of crime, bankruptcy, and problem gambling. But those costs are real and, the evidence suggests, very large.
http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/10/30/studies-casinos-bring-jobs-but-also-crime-bankruptcy-and-even-suicide/
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