Elected officials overestimate economic benefit of casino

To the Editor,

What a casino would do to this area is devastating. Is the petty promise for a few to a handful of jobs worth the effects of a casino on our community?

Thomas A. Garrett, senior economist at the Federal Reserve Bank of St. Louis in 2003, found that an increase in casino revenue decreases retail sales. Casino patrons will likely take their dollars away from certain activities; restaurants, movies, etc., and move them into casino gambling. Howard Shaffer, an assistant professor of psychiatry at Harvard Medical School and Ryan Martin wrote in the annual Review of Clinical Psychology, “allowing more casinos and other gambling opportunities is not likely to produce the great economic benefits often promised.”

Due to no future state or local taxes being levied upon the casino proceeds, communities can expect no help help from casino revenues for local schools or urgent community needs. Gambling addictions are rising at a real alarming rate in the U.S. The National Council on Problem Gambling estimates at least 5 percent of the population is affected. The real impact is obvious, just look at our roads and schools, paid for by revenues from one form of gambling, lotteries. We residents of Michigan have put up with the nations worst roads and school that have to drop programs that are required for college acceptance, due to insufficient funding.

Professor Robert Goodman’s study titled “Legalized Gambling as a Strategy for Economic Development,” describes the effect of gambling on local businesses. He indicates that a study of South Dakota a year after legalizing video gambling in the state showed “significant declines for selected activities that included clothing stores, recreational services, business services, auto dealers and service stations. In Atlantic City homelessness increased while clothing stores and eating and drinking establishments declined. Property values declined as well.” We already have lower than normal property values in our county, we cannot afford to have them depreciate more.

Field research shows that a loss of one and a half jobs for every one job created by legalized gambling. Research from gaming expert, J. Kindt, states of gambling in general, “for every $1 legalized gambling interest indicates is contributed to taxes really costs the taxpayer’s $3 to address the increased social economic cost to society.” It brings economic decline which in turn increases crime rates.

Todd Tourville

Ironwood