Casinos

Casinos

We are at a crossroads in Kentucky.  This year we face a referendum on whether we should continue to invest our public dollars where they will realize the greatest value in creating opportunity for our citizens, or we can establish casinos, a quick, get-rich scheme for government that expands citizens’ access to an addictive amusement.

Casinos in many ways represent the opposite of our Kentucky values of good work, strong family, and safe and neighborly communities.

Casinos are a Tax on Kentucky Families…

• At a tax rate of about 35%, $1.4 billion must be lost in casinos for the government to receive $500 million in revenues.
• Every family of four in Kentucky will have to lose $1,360 in Kentucky casinos each year to reap the tax revenue Steve Beshear promises ($340 per person).
• If casinos take $1.4 billion, $13 billion must be wagered, equivalent to $1,838 per person over 18. Per capita income in Kentucky is about $18,000.

…That Create Problem Gamblers.

• Living within 50 miles of a casino nearly doubles prevalence of pathological gambling[i]
• The Nova Scotia Gaming Foundation in 2004 estimated that “problem gamblers” accounted for 41.4% of revenues at table games and 74.6% of revenues at machines.
• Indiana has seen increased costs resulting from problem gamblers and pathological gamblers totaling $42 million.[ii]

 …Destroys Families,

• 20% of problem gamblers file for bankruptcy[iii]
• 25-30% of problem gamblers file for divorce[iv]
• Increases violence, divorce (NV #1), high school dropouts (NV #1), abortion (NV #3)

…Drives Small Businesses Away

• More than 705 of businesses in Natches, MS, reported declining sales within a few months of the opening of the city’s first riverboat. [v]

…Increases Crime,

• Crime rates in casino communities are 84% higher than the national average. If casinos come to Kentucky, expect county jail populations to increase and cause further financial strain on counties.

Nevada Statistics

• Nevada, the mecca of casino culture in the United States, leads the nation in divorce, high school dropouts, motor vehicle theft, and prostitution. It is also #2 in robberies, #3 in murder, suicide, and the number of abortions; all the while being #45 in voter participation. (sources attached)
• The things that happen in Vegas need to stay in Vegas. We cannot afford the problems casino gambling will bring to our local communities.
• This November, we can’t roll the dice with Kentucky’s future.

Financial Impact of Casinos:

Takes Money from Local Business…

• 75% of expenditures in Missouri casinos were not new but diverted from other spending in the economy.  [vi]
• While some revenue may be recaptured from out-of-state spending, 64% of casino spending is redirected from other businesses in the state.[vii]

Takes Money from Local Banks…

• 12% of casino expenditures comes from reduced wealth: income no longer saved or invested but gambled away at the casino.[viii]

Creates Undesirable Effects on the Workforce…

• Increased absenteeism, reduced productivity and gambling on company time[ix]
• 7 out of 10 problem gamblers missed work at some point in their lives to gamble.[x]
• Pathological gamblers and problem gamblers are 2.3 times and 1.8 times more likely to experience a job loss than average.[xi]

Destroys Local Jobs…

• When Atlantic City allowed casinos, forty percent of local restaurants closed in three years.
• More than 705 of businesses in Natches, MS, reported declining sales within a few months of the opening of the city’s first riverboat.
• A 1995 report by the Maryland Department of Business and Economic Development estimated the net impact on employment should a casino open in Baltimore would be a loss of 9,000 to 16,000 jobs.
• A June 11 Wall Street Journal article points quotes economists saying that “the effect on jobs could be negative, because many modern casinos—replete with slots and video poker machines—need fewer employees per customer than the businesses they tend to replace.”

Will Rob Kentucky of Other Revenues…

• Gambling would compete with the Kentucky Lottery.  In Indiana, the introduction of casinos resulted in a 13% reduction in lottery revenues.  This translates to a $50.8 million biennial loss to Kentucky scholarship funds.

Social Impact of Casinos:

Creates Gambling Problems…

• The Nova Scotia Gaming Foundation in 2004 estimated that “problem gamblers” accounted for 41.4% of revenues at table games and 74.6% of revenues at machines.

Creates Crime…

• Crime rates in casino communities are 84% higher than the national average.[xii]
• A 2006 study of more than 3000 US counties estimated that 8% of crime in casino counties was attributable to the casinos.[xiii]
• When Atlantic City allowed casinos, the crime rate tripled within three years, and Atlantic City rose from 50^th in the nation in per capita crime to 1^st.
• Crime rates in counties that border casinos also experience increased crime rates, indicating that the crime grows, not simply shifts towards the casino.

Distorts the Democratic System…

• The gambling industry spent an average of $12 million to win elections in Louisiana, Missouri and South Carolina.  Opponents of gambling have very little to spend, in Louisiana it was only $53,000. 
• In 1995 in Virginia, casino proponents spend $1.1 million to hire 48 lobbyists representing just about every lobbying firm in the state capital, just to prevent anti-casino groups from competing. [xiv]
• There was a 400% increase in casino-industry contributions to federal candidates between 1992 and 1998.