THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, November 25, 1995 TAG: 9511230047
SECTION: FRONT PAGE: A10 EDITION: FINAL
TYPE: Opinion
SOURCE: By SHERYL H. BELL
LENGTH: Medium: 86 lines
The Oct. 31 Virginian-Pilot included a story about Sen. John Warner's advocacy of a national study of legalized gaming. It is important that your readers know that this proposed study, to be paid for with their tax dollars, is unnecessary and simply a smoke screen sponsored by the anti-gaming faction whose sole purpose is to criminalize gaming entertainment.
The national gaming commission called for in Rep. Frank Wolf's bill is not necessary. The argument that there are no studies on social problems connected with gaming are false. There have been more than 200 studies in the past few years by professors, universities, investment groups, consulting forms, and others. The information Wolf is trying to gather already exists; he simply does not like the result. In addition, most states have been doing an admirable job of regulating and studying their gaming industries and are in no need of assistance by the federal government.
Wolf argues that gaming takes away money from other businesses. This argument has been proved false in jurisdictions where gaming is legal. Wolf is using the oft-cited ``substitution effect.'' In fact, many economists agree that the consumer income pie grow s over time, and casino and other job-creating industries contribute significantly to the growth of incomes. The substitution effect completely ignores the benefits of new capital investment and the affect that most consumers' incomes grow, rather than remaining stagnant. There are several examples of this in new gaming jurisdictions, including:
In Will County, Ill., the expansion of retail trade trailed the state for three of the four years before the introduction of casino gaming in Joilet. In the first full year of gaming operations, retail trade grew at 8.9 percent in the county while retail sales in the state fell two percent.
At least 12 new businesses, including many new restaurants, have opened in Tunica, Miss., since riverboat gaming came to town. Other already established businesses in the area have also fared well since the first riverboat opened. Local restaurants are reporting increased business and even the local Chevrolet dealer reported a sharp increase in sales directly from casino operators, local landowners, and residents who are newly employed.
Retail sales in Warren County, Miss. (Vicksburg), increased 26.41 percent from fiscal 1993 to fiscal 1994.
Rep. Wolf's argument about gaming ``creating'' crime also goes against the evidence found in current studies about the industry, Wolf ignores studies conducted by the State Police in Illinois, and by the Massachusetts Senate, which found no connection between legal gaming and increased crime. A recently released report written by the Illinois Criminal Justice Information Authority illustrated that crime has not increased in the Illinois cities hosting riverboat casinos. Officials in Aurora, East Dubuque, East Peoria and Joilet extolled the benefits that riverboat gaming has had on their communities.
Wolf also contends that legalized gaming will leas to problems with public corruption. However, only one state - Louisiana - has had to deal with a gaming-related problem with corrupt public officials. Other incidents cited by Representative Wolf involved law enforcement agents posing as gaming interests. No representatives of casino gaming companies were involved. I'm sure your readers know that corrupt public officials are certainly not new to Louisiana politics. Additionally, the scandals in Louisiana have not involved any casino interests, but local investors and video poker parlor owners. There are more cases in the United States of public officials being corrupted by insurance, real estate and labor interests to name just a few, than there are of corruption by gaming interests. No one seriously claims that those interests ``cause'' corruption.
When you peel back the bogus economic arguments what you have are moralists who want the government to restrict our freedom of choice. No one reputable in the industry claims that legalized gaming will be an economic cure-all for a state or community. However, the legitimate gaming industry clearly has a proven track record of expanding the tax base by creating jobs and economic development. And while communities legalizing gaming can expect some growing pains resulting from the influx of tourist and job-seekers, these problems can be minimized through proper planning and regulation. Experience has shown that the costs of addressing these needs are more than covered by the expanded tax base gaming creates.The Oct. 31 Virginian-Pilot included an article about Sen. John Warner's advocacy of a national study of legalized gaming. It is important that your readers know that this proposed study, to be paid for with their tax dollars, is unnecessary and simply a smoke screen sponsored by the anti-gaming faction whose sole purpose is to criminalize gaming entertainment. MEMO: Ms. Bell is a research analyst with International Game Technology in Las
Vegas, Nev. by CNB