Unity Baptist Church
Tuesday, October 21, 2014
Exalt, Equip, Exhort, Evangelize
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Expanded Gambling

Keep River Boat & Expanded Gambling OUT of Kentucky!

Casinos will increase demand for Kentucky non-profit outreach

  • In the “Gambling Impact and Behavior Study” presented to the National Gambling Impact Study Commission in 1999, the National Opinion research Center at the University of Chicago found that the prevalence of problem and pathological gamblers more than doubled within a 50-mile proximity to a casino. 
  • Using their statistics, expanding casinos to within 50 miles of 1.2 million Kentuckians would create 18,000 new problem and pathological gamblers.

 This loss in funding can not be replaced by government resources that must be dedicated to fighting crime, replacing tax revenues from reduced commerce in other sectors of the economy, and providing social services to address the social problems created by casinos.

   * Information gathered from state officials in Louisiana and New York as well as data from the National Association of Fund-Raising Ticket Manufacturers.

 U Gambling on an Alternative Revenue Source-The Impact of Gambling on the Charitable Gambling Component of Nonprofit Finances, by Drew Nolan and Jim Andrews, NONPROFIT MANAGEMENT & LEADERSHIP, vol. 17, no. 1, Fall 2006, www.interscience.wiley.com., p. 18.

 Casinos 

We are at a crossroads in Kentucky. This year, again, 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 50th in the nation in per capita crime to 1st.
  • 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.
  • Take a Stand Church, and say NO to Expanded Gambling in Kentucky!

[i] Gerstein, D. R., et. Al., Gambling Impact and Behavior Study: Report to the National Gambling Impact Study Commission. Chicago: NORC, University of Chicago. 1999.

[ii] Policy Analytics. 2005. “A Cost-Benefit Analysis of Indiana’s Riverboat Casinos for FY 2005,” Report to the Indiana Legislative Council and the Indiana Gaming Commission

[iii] Gerstein, D. R., et. Al., Gambling Impact and Behavior Study: Report to the National Gambling Impact Study Commission. Chicago: NORC, University of Chicago. 1999.

[iv] Ibid.

[v] Williams, David. 7/2/2007. Business Lexington, “Odds Against Kentucky: Expanded gaming would not be economic windfall for the state”.

[vi] Leven, C. and D. Phares. 1998. The Economic Impact of Gaming in Missouri, Report to Civic Progress, St. Louis, MO

[vii] Ibid.

[viii] Ibid.

[ix] Gerstein, D. R., et. Al., Gambling Impact and Behavior Study: Report to the National Gambling Impact Study Commission. Chicago: NORC, University of Chicago. 1999.

[x] Ibid.

[xi] Ibid.

[xii] Williams, David. 7/2/2007. Business Lexington, “Odds Against Kentucky: Expanded gaming would not be economic windfall for the state”.

[xiii] Policy Analytics. 2005. “A Cost-Benefit Analysis of Indiana’s Riverboat Casinos for FY 2005,” Report to the Indiana Legislative Council and the Indiana Gaming Commission

[xiv] United States House of Representatives. 1995. Committee on the Judiciary. National Gambling Impact and Policy Commission Act. Hearing on HR 497. 104th Congress, First Session.