New York's Race to the Bottom

Plagued with fiscal mismanagement and poor fiscal choices, taxed to the hilt, already destroying communities and destroying lives, New York State marches toward the dazzle of quick bucks and failed policy.

Surrounded by the evidence of increased crime, the costs of gambling addiction, the degradation of communities, New York lawmakers ignore the existing evidence of lack of economic development.

Over 75 percent of addicted gamblers actually turn to crime. Twenty percent of addicted gamblers will attempt suicide. Out of all the addictions, gambling addiction has the highest suicide rate.”


Legalized casino gambling: A good bet for New York?
Matt Liptak

Opening New York up to private enterprise casino gambling seems like a safe bet for injecting some badly needed cash into the state’s economy, according to some lawmakers. But other sources suggest that the change may only provide a quick windfall for the state.

#And it could also leave serious social problems in its wake.

#The idea for non-Indian reservation casino gambling got a breath of new life with Governor Andrew Cuomo’s 2012 State of the State” address. He considered the potential casinos to be an “economic engine” and said New York was already inundated with gambling of other forms such as racinos and the lottery.

#Adding casinos to the mix would only keep those going out of state for casino gambling inside the state along with potentially $1 billion in revenue.

#State Senator John A. Defrancisco (R—Syracuse) agrees with Cuomo.

#“We already have gambling in the state of New York,” he said. “We have gambling at the Indian casinos. We have lotto games of every shape, manner and form. We have video lotteries in restaurants. We have bingos. I guess what he’s saying and, quite frankly, I believe, is that if you’ve got casino gambling already going on in the state that it makes sense that private enterprise should be able to enter into that market if they chose to.”

#There are those in Syracuse who disagree with the Senator’s position. Colby Sutter is the Prevention Network’s program coordinator for youth development at 906 Spencer St. in the city. He works to help youth who are confronting their gambling addiction.

#“I don’t like that theory, morally,” he said. “My mom used to say ‘if all your friends are jumping off a bridge would you jump off a bridge?’ Not completely out of context, but drug dealers are making a lot of money selling illegal [drugs]. To me does that mean that mean we should start selling illegal drugs for the state?”

#Others are waiting until they have more information before they take a position on the issue.

#“I think I want to take a look at it and here both sides of the story which I have been doing for the past couple of weeks,” said Assemblyman William B. Magnarelli (D—Syracuse). “There’s a lot of pros for doing it on the economic side of the ledger but there are a lot of cons as well — what it could mean to families and working people in New York State who become addicted to that kind of gaming.”

#Statistics support the idea that while gambling itself is lucrative for states, generating big, long-term income with casinos is not necessarily a sure thing.

#The Nelson A. Rockefeller’s Institute of Government report “Back in Black: States’ Gambling Revenues Rose in 2010” was released on June 23 of 2011.

#According to its statistics, state and local government revenues from casinos increased by $15.8 million or .4 percent from the fiscal year 2009 to the fiscal year 2010 but were down by $373 million or 7.7 percent compared to revenues in the fiscal year 2008.

#The report says that, although gambling profits have been weaker in recent years than historically, its expansion tends to be an attractive alternative to increased taxes in hard times such as our current recession.

#The cycle of the North East’s casino gambling is one where the newer casinos get the business. More mature markets such as those in New Jersey are losing out to the recent construction of casinos in Pennsylvania. As states scramble to get in on the revenue during hard times, the pressure is on New York to get in the fray.

#“Other states have brought in substantial revenues and New York state’s a huge state, especially downstate, with a massive population that certainly would justify hundreds of millions of dollars in additional revenues, DeFrancisco said. “And in view of the financial problems of the state, that certainly would not hurt.”

#But changing New York’s casino gambling restrictions is not something that can happen overnight. Getting the change approved this year by the legislature would just be the first step. Two successive and separate state legislatures must approve of the change and then the vote would go to a public referendum.

#Those opposed to the state’s expansion of casino gambling are concerned that there will be those that are hurt by the legalization.

#Sutter describes what he calls the “reverse Robin Hood effect.” He cited a statistic stating that 80 percent of revenue made by casinos is made by the same 10 percent of people.

#“It’s like robbing from the poor to give to the rich,” he said. “To me that’s just not how society should work. That’s why morally I find a big issue with it. It’s taking money from people who can’t afford to be spending money to help better ourselves. I agree that we need to bring in money to our economy, I just believe we can find a lot better ways to bring in money.”

#That effect doesn’t include the price paid by those who become addicted to gambling.

#“It’s known as an impulse control disorder,” Sutter said. “People are seeking instant gratification. Some people can actually become physically addicted to it and mentally addicted to it. There are a lot of illegal behaviors related to it. Over 75 percent of addicted gamblers actually turn to crime. Twenty percent of addicted gamblers will attempt suicide. Out of all the addictions, gambling addiction has the highest suicide rate.”

#With so much at stake the subject is sure to be a hotly contested one both in and outside of Albany. Lawmakers, though, are confident that they will make the right decisions and that, if it comes to a referendum, the people of New York will to.

#“We’re just working hard on the budget and going through all of these things that the governor has proposed,” Magnarelli said. “I think he gave us a good framework to work within. I think we’re going to be discussing all parts of that budget and hopefully we’re going to get this done on time.”

#“In reality what the governor’s proposal is, is should we let the voters decide whether there’s going to be casino gambling,” DeFrancisco said. “Ultimately it’s going to be their decision.”