The case for a casino is waning
Saturday, May 4, 2013
The financial soundness of casino gambling for New Hampshire got a big maybe
this week, based on an impact study prepared by the New Hampshire Center for
Public Policy Studies. Meanwhile, Senate Bill 152 to legalize casinos got a big
no in Skyped testimony before a House subcommittee by a Baylor University
economist.
The gist of the center’s report is that the benefit of casino gambling lies, in large part, beyond the control of New Hampshire. Rather, it depends a great deal on what casinos are built where in Massachusetts and how successful those facilities are in luring gamblers away from a Granite State facility
With no competition, Steve Norton, the center’s director, said each video slot machine would generate approximately $229 a day, with the state and local communities getting 30 percent.
Should a casino of similar size to one in New Hampshire be built at Suffolk Downs, near Logan Airport, revenue drops to $149 a day per machine. Taking the analysis one step further, a destination casino three times larger than the one proposed for New Hampshire would drop the per-machine take here to $126 a day.
As reported by the Union Leader newspaper, Norton admitted to some softness in his numbers. He told the subcommittee much depends on exactly what is built in Massachusetts and where. These factors would determine to what extent a Bay State casino could draw business away from a competing New Hampshire facility.
Also discussed was the notion of saturation. While the numbers here are also fluid, it would be fair to infer the market for the electronic version of the old one-armed bandit will eventually max out and in the process cut revenues for New Hampshire.
At best Norton’s testimony can be seen as a speculative draw for casino advocates. Not so, however, was testimony from Earl Grinols, via Skype.
Grinols supported the camel’s nose in the tent notion that a decision to allow a single casino would only be the beginning.
“Once you introduce it into New Hampshire, you’re done,” he said via Skype. “You’re not going to ever reverse it and it will be a continual presence for expanded gambling,” according to the UL news report. “In New Hampshire it will become the largest lobbying presence in your state. The gambling industry will become the biggest lobbying presence very quickly.”
But that wasn’t the half of Grinols testimony. For those still in denial, he offered numbers of the downside impact of casino gambling.
Grinols said research shows that gambling brings to a community increases in crime, serious accidents, job loss, sickness, welfare recipients, divorce and bankruptcy. He said each problem gambler costs a society $3,700 annually, while a pathological gambler can cost a society $13,000 a year.
“Out of every 100 people, it’s likely you’ll create one pathological gambler and one to two problem gamblers. In a group of 100, the group will have to come up with about $20,000 in social costs.”
“There is,” he said, “a connection between gambling and crime.”
Grinols facts and figures stand in sharp contrast to some in law enforcement — hoping for added jobs — who promise no more added crime than a new shopping center would bring.
More bad news for casino interests came this week from state revenue reports. April revenues were up more than $48 million, a trend that if it continues may lessen some of the panic driving the casino movement.
http://www.fosters.com/apps/pbcs.dll/article?AID=/20130504/GJOPINION_01/130509625/-1/FOSOPINION
The gist of the center’s report is that the benefit of casino gambling lies, in large part, beyond the control of New Hampshire. Rather, it depends a great deal on what casinos are built where in Massachusetts and how successful those facilities are in luring gamblers away from a Granite State facility
With no competition, Steve Norton, the center’s director, said each video slot machine would generate approximately $229 a day, with the state and local communities getting 30 percent.
Should a casino of similar size to one in New Hampshire be built at Suffolk Downs, near Logan Airport, revenue drops to $149 a day per machine. Taking the analysis one step further, a destination casino three times larger than the one proposed for New Hampshire would drop the per-machine take here to $126 a day.
As reported by the Union Leader newspaper, Norton admitted to some softness in his numbers. He told the subcommittee much depends on exactly what is built in Massachusetts and where. These factors would determine to what extent a Bay State casino could draw business away from a competing New Hampshire facility.
Also discussed was the notion of saturation. While the numbers here are also fluid, it would be fair to infer the market for the electronic version of the old one-armed bandit will eventually max out and in the process cut revenues for New Hampshire.
At best Norton’s testimony can be seen as a speculative draw for casino advocates. Not so, however, was testimony from Earl Grinols, via Skype.
Grinols supported the camel’s nose in the tent notion that a decision to allow a single casino would only be the beginning.
“Once you introduce it into New Hampshire, you’re done,” he said via Skype. “You’re not going to ever reverse it and it will be a continual presence for expanded gambling,” according to the UL news report. “In New Hampshire it will become the largest lobbying presence in your state. The gambling industry will become the biggest lobbying presence very quickly.”
But that wasn’t the half of Grinols testimony. For those still in denial, he offered numbers of the downside impact of casino gambling.
Grinols said research shows that gambling brings to a community increases in crime, serious accidents, job loss, sickness, welfare recipients, divorce and bankruptcy. He said each problem gambler costs a society $3,700 annually, while a pathological gambler can cost a society $13,000 a year.
“Out of every 100 people, it’s likely you’ll create one pathological gambler and one to two problem gamblers. In a group of 100, the group will have to come up with about $20,000 in social costs.”
“There is,” he said, “a connection between gambling and crime.”
Grinols facts and figures stand in sharp contrast to some in law enforcement — hoping for added jobs — who promise no more added crime than a new shopping center would bring.
More bad news for casino interests came this week from state revenue reports. April revenues were up more than $48 million, a trend that if it continues may lessen some of the panic driving the casino movement.
http://www.fosters.com/apps/pbcs.dll/article?AID=/20130504/GJOPINION_01/130509625/-1/FOSOPINION
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