Tom Larkin offers clarity

The proponents of expanded gambling take advantage of the confusion between;

-How much Money is spent gambling?
-How much Money is lost gambling?
-How much Revenue goes to the state?

The proponents will make a the statement

Casinos in Ma. will generate 1 billion dollars a year

(This is a projection provided by the Gambling Industry, but let's assume it is true.)

The implication is the state has lost revenue of 1 billion dollars..

Some facts:

-Money spent gambling usually nets about 10% to 15% profit for the Casino.

-To be fair, the billion dollars spent does contribute to money won, salaries and other expenses, which helps the casino economic system..

-However, the billion dollars is re-cycled away from other spending options in the normal entrepreneurial economic system. This is not new money.

--Where does the billion come from? It doesn't come from those who do not gamble (about 1/3rd of the population disproportionately represented by middle to upper income levels.)

It does not come from the majority of people who gamble. The casino economic system cannot be sustained by casual gamblers. About 80 to 90% comes from 10 to 20% of the gamblers, disproportionately represented by middle to low income groups.
-The net profit, of 1 billion spent in the Casino is about 100 to 150 million (10 to 15% of money spent)

-The State receives about 25% of the net profit which ranges from 25 to 35 million...NOT 25% of money spent.

-Therefore, for the state to receive 1 billion dollars, about 10 billion would have to be recycled out of the normal economic exchange of goods, and spent gambling. That is alot of discretionary money re-directed away from the people who can least afford it.!!!!!!!!

And, of course the social consequences consequences follow.... increases in poverty, crime, alcoholism, debt and relapse etc.


The proponents consistently over-simplify..."This is a Jobs bill...Casinos will generate 1 billion dollars." etc.

But, MOST OF THEM KNOW THE FACTS.

The more knowledgeable they are, the more irresponsible they are behaving.

Tom Larkin