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The Disagreement for Legalized Gambling
The arguments in goodwill of legalized gambling are based mainly on the assumption that casinos and lotteries can produce benefits for their communities. Many public officials have voted in favor of casinos in the hope of reviving depressed local economies. They welcome their new gambling ventures with a fanfare they once reserved for the opening of manufacturing plants. In the last decade, politicians have touted casinos as a substitute for the devastated steel industry of Gary, Indiana; a counterbalance to auto industry losses in Detroit; and a replacement for vanishing jobs in Connecticut's defense industry. In Iowa, lawmakers said riverboats would revive cities devastated by declines in the farm-machinery industry, and in New Bedford, Massachusetts, a casino was being proposed in 1996 to provide jobs for out-of-work people in the fishing industry. The mayors of Chicago, Philadelphia, and New York are eager to add casinos to their cities in the hope of creating jobs and public revenues.
Lotteries have also been promoted as helpful, with many states using their lottery revenues to help pay for education. In 1995 state lotteries produced more than $11 billion in revenues. In many states these revenues become part of the state's general fund, but in nearly half of the states with lotteries, lottery revenues are specifically earmarked for education purposes. In 1995 about $5.4 billion of all lottery revenues were used for education programs.
In 1995 Frank Fahrenkopf, Jr., president of the American Gaming Association, the chief trade association of the casino industry, told the United States Senate Governmental Affairs Committee: Our industry is bringing economic opportunity to hundreds of communities across the country. The tax revenues we generate ($1.4 billion from casino gaming alone in 1994) are helping to build schools and roads, and to provide for other civic needs.
Gaiashkibos, head of the National Congress of American Indians, told a congressional subcommittee in early 1991, The window of opportunity which opened the way for gaming has given us the competitive edge and opened the door for other economic ventures as well ... Gaming is all that many tribes have today that can work.
The Argument Against Legalized Gambling
Critics of legalized gambling, however, dispute that in most communities the elaborate economic promises made by gambling promoters are rarely realized. The hopes of casino proponents are based largely on the economic success of Las Vegas, which legalized casinos in the early 1930s. But Las Vegas for decades had a virtual national monopoly on casino gambling, and its casinos developed in a desert area, where there were few already existing local businesses. The city was able to develop by drawing huge numbers of tourists who came and not only wagered their dollars but also spent their money on hotels, restaurants, entertainment, and gifts.
The strongest arguments for the benefits of casinos apply to places that, like Nevada in the 1930s, have almost no obtainable businesses. Such areas include the many Native American reservations that now have casinos, and places such as Tunica, Mississippi, which before the arrival of casino gambling had the highest per capita unemployment in the country.
Critics of legalized gambling acknowledge that, in the case of communities like these, the introduction of a casino—or indeed of any economic enterprise—can have a short-term positive economic impact, because there are almost no preexisting local businesses to be negatively affected. But the economic benefit for communities such as Tunica, or for many Native American reservations, will only exist until other nearby communities, other Native American tribes, or other states begin to offer competing gambling venues.
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