By John W. Kindt
Professor of Business Administration
University of Illinois
"It is not economic development; it's about taking money
out of the consumer economy and shipping it off to Las Vegas"
"The casinos are walking out of states with at least
$1 billion in their pockets to Las Vegas"
"This is an industry that generates addicted gamblers
and they are desperate to get money"
"Gambling has a zero-sum economic effect in its market and,
like legalizing cocaine, the socio-economic costs of
legalizing gambling overwhelm the benefits"
"Every video [slot] gambling machine takes
$60,000 out of the consumer economy"
"When the money is not spent on cars and refrigerators and is instead dropped into a slot machine, it leaves the economy"
"A shrinking economy means lost sales and lost jobs"
"$60,000 spent in a consumer economy
multiplies by respending into $180,000"
"The real loss by gambling is $180,000
to the consumer economy for each slot machine"
"Studies in Australia have verified this drain
on the economy by video gambling machines"
"for every slot machine you add, you lose one job per year
from the consumer economy"
"Therefore 5,000 new video gambling machines costs
the economy 5,000 lost jobs each year"
"Legalized gambling cost taxpayers $3 for every $1
in state revenue to government"
"Any legislator who says he doesn't see the downside
hasn't done his homework"
"My bottom line is this is no time
to be gambling with our economy"
"A 1999 report by a bipartisan federal panel on gambling
concluded the United States should put a hold on further
casinos until it is clear what the impact is on America"
"Gamblers spend 10 percent less on food;
25 percent less on clothing and 35 percent less on savings"
"Thirty-seven percent of gamblers dip
into their savings to fulfill their habit"
"In 1993, 40 percent of Minnesota restaurateurs
reported declines attributed to casinos"
"Bankruptcies and addictions increase in areas with casinos"
"An Osage tribal study found that between $41 million
to $50 million left a 50-mile radius around their own casino"
"Your addiction rate will go up if you have gambling in this area"
"Movies and Disney World don't create addicts"
"The socio-economic impact of gambling addiction
is comparable to drug and alcohol addiction"
"When governments legalize and encourage gambling,
they are creating addictions among their citizens"
"The gambling interests like to point to the construction jobs,
but those jobs go away"
"The social costs, and the increased tax costs
due to addicted gamblers, stay behind"
"Gambling interests hire lots of economists to do impact
studies, but what you need is cost-benefit analysis,
and you'll never see the industry finance those"
"No reputable economist anywhere
believes it's [gambling] an economic tool"
"For every dollar of revenue generated by gambling,
taxpayers must pay at least $3 in increased criminal
justice costs, social welfare expenses, high regulatory costs,
and increased infrastructure expenditures"
"Casinos don't bring business except for the gambling boys,"
"Generally, traditional businesses were slow to recognize
the way in which legalized gambling captured dollars from
across the entire spectrum of the various consumer markets,
but now they know"
"The (gambling) industry has a tendency to find public figures ...
and these persons are used for their public image. ...
These people generally come in for a couple of years and then
they sell out and it's 100 percent owned by out-of-state interests"
"People will spend a tremendous amount of money in casinos, money they normally would spend on refrigerators or a new car. Local businesses will suffer because they'll lose
consumer dollars to casinos."
Quoting Donald Trump
"It's lose, lose for the taxpayer"
"Gambling is being subsidized by the taxpayers"
"[slots] are being called "the crack cocaine" of the gaming industry"..."This is not my terminology,"...
It's the terminology of the majority of sociologists."
"For every three machines, you lose two jobs
out of the surrounding economy because people
are dumping their money on gambling"
"If the government wants to stimulate the economy,
it should outlaw gambling"
"Gambling is a catalyst for economic downturn"
"One to 2 percent of the population becomes addicted gamblers"
"27 percent to 55 percent of casino revenues
come from problem or pathological gamblers"
"Bankruptcies increase 18 percent to 42 percent
above the national average"
"Although crime and corruption decreases within a one-mile
radius of a casino, it increases 10 percent within a
35-mile radius by the third year the casino is open."
"If you want your 401(k) to come back, recriminalize gambling"
"It's time to wipe the slate clean, recriminalize gambling,
just like we did in this country 100 years ago"
"And as far as jobs go, for every one job that the casino creates,
one is lost in the 35-mile feeder market"
"Gambling drains the economy by taking money away
from grocery stores and retail businesses and putting it
in the hands of an industry that produces no product"
"While advocates of legalized gambling say it brings in revenues needed for education and other uses, it actually has led to
higher taxes, loss of jobs, economic disruption of non-gambling businesses, increased crime and higher social-welfare costs"
"If gambling were banned, those social costs would drop,
tax revenues from consumer goods would increase, and money
would be pumped into the productive economic sector"
"The lightning spread of 'Western-style' gambling overseas
has increased the problems of addicted and problem gamblers,
organized crime and alleged corruption in Asia and the Middle East"
"In permitting gambling enterprises to flourish in the United States
and abroad, the United States undermines global socio-economic stability in contravention of its international obligations"
"Another threat to stability is the rise of Internet gambling
"The faster the gambling activity, the more highly addictive it is;
and the more addictive the gambling activity is,
the more revenue it will generate for the industry"
"Gambling addicts usually lose their focus at work and
problem military gambling poses a national security threat"
"The military should get rid of video gambling devices
on nearly 100 overseas bases and posts"
"According to a Defense Department study on military gambling
in 2001, at least 2 percent of U.S. military personnel
were pathological gamblers in 2001"
"Don't bet on the $500 million in anticipated revenue from
slots every year easing the tax burden on the average Joe"
"Gambling is a bad deal for taxpayers"
"The ABCs of legalized gambling --
addictions, bankruptcies and crime"
"Bankruptcies will be up 18 to 42 percent around
racinos areas [tracks] as people lose their money"
"Crime goes up 10 percent due to the gambling by the
third year after racinos or slot machines are open,
and then it continues upward after that"
'"Your social costs, your costs to the taxpayers, are $3
for every $1 of benefits, it's not good economic development"
"While gambling addiction can be a social justice reason
for some to ban gambling, the economic evidence suggests
that the social and economic costs of gambling are
$3 to the taxpayers for every $1 in benefits"
"[State-sponsored gambling] produces no product,
no new wealth, and so it makes no genuine contribution
to economic development"
"A study in Illinois in the mid-1990s found that
65 percent of businesses were hurt by the proximity of gambling"
"The common mistake that business people make is they're
going to get drive-by business"..."Only gas stations are helped"
"There would be economic disruption in Omaha from expanded gambling...You would just be moving Chernobyl
closer to the population center"
?Bank deposits decline, more checks bounce and
the number of bad loans goes up?
"Clothing sales plummet, rent delinquencies mount and
even grocery sales shrink as gamblers, having tapped out their entertainment budgets, dip into dollars set aside for necessities"
"Legalized gambling is the leading cause of bankruptcy"
"Utah sells itself to Fortune 500 companies as a noncasino state
where employers don't have to be concerned about
absenteeism and other problems associated with gambling"
"What we really need is a federal intervention plan,
which calls for a moratorium on gambling in the U.S."
"Actually, they should just roll it all back--
get rid of gambling...It destabilizes the U.S. economy"
"Slots should be "recriminalized...Don't put VLTs
[Video Lottery Terminals] in to try and save the raceways"
"Addiction to gambling -- is comparable to drug addiction,
according to reports out of Harvard"
"Taxpayers would likely be responsible for treating addicts"
"Lotteries boost state revenues in the short run
but don't feed the economy in the long run"
"Besides creating more compulsive gamblers, money
spent on lotteries isn't spent on other goods such as
clothing or computers, which would trickle through to
retailers, manufacturers and other parts of the economy"
"The smartest thing legislatures can do is get rid of (lotteries)
and get those dollars buying consumer goods and get the
sales tax revenues from that"
"We beat the Great Depression
without lotteries and legalized gambling"
"Sociologists almost uniformly report that increased gambling
activities, which are promoted as sociologically 'acceptable'
and which are made 'accessible' to larger numbers of people
will increase the number of pathological gamblers"
"I would hate to see the state of Wisconsin make
another mistake and locate another casino in a
high-density population area"
"You bring in gambling into a major population base,
and the more people you have going into a casino,
the more people you have hooked on gambling"
"It becomes a cannibalization of your pre-existing economy"
"Then they're like addicts; they can't help themselves...
They will steal, cheat, embezzle and commit other crimes
just to get money to gamble'
"In convenience gambling scenarios, discretionary spending
and nondiscretionary 'addicted gambling' dollars were
transferred from other forms of consumer expenditures...
"Local competing businesses were thereby losing revenue."
Professor Kindt has been quoted in the following
news sources as well as many others
Miami Herald, The Grand Rapids Press, Raleigh Biblical Recorder, www.gamblingmagazine.com, The Journal-Standard, Times-Mail, Associated Baptist Press, www.news.uiuc.edu/biztips, USA TODAY, casinocitytimes.com, Lancaster New Era, Managerial and Decision Economics, Boston Globe, www.stltoday.com, www.fremontneb.com, Associated Press, Omaha World-Herald, www.thoroughbredtimes.com, Times Herald-Record, www.sc-democrat.com, Lancaster New Era, www.centredaily.com, Gannett News Service, seattlepi.nwsource.com, www.madison.com, journalsentinel.com, The Hearld-Dispatch
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