Harms Of Government-Sponsored Gambling

This is family policy matter program is produced by the North Carolina family policy Council of profamily research and education organization dedicated to strengthening and preserving the family enough in the studio. Here's John Rushton, president of the North Carolina family policy Council and thank you for joining us this week. Profamily policy matters. It is our pleasure to have Paul Davies on the program.

Paul is editor of the website get government out of gambling.org and the Maggie Walker fellow at the Institute for American values. He is a journalist who is worked at the Wall Street Journal and the Philadelphia Inquirer, among others, a series of editorials he wrote on casino gambling was nominated for a Pulitzer Prize in 2009, Paul was with us to talk about government-sponsored gambling, how it harms society and individuals and why the government should get out of the gambling business.

Paul, thanks so much for being with us today. Thank you.

What we appreciate your time know you have described the government as the and I quote chief enabler of the gambling industry.

What role have state governments played in helping to spur the increase in gambling that we're seeing across the United States today. If you would give us some examples of the types of gambling being promoted by state governments. Xiamen now gone back to Australia. I had one state that had casinos that was Nevada. And after that we had casinos in Atlantic City but in essence, and there's been that part about half the states in the country are now legalized casinos and we wouldn't have all the casinos in the country without each state government, and that's basically been a joint effort between mainly the casino interest to go in there with their influence and money in state houses and they are very influential there and flood the states with a lot of campaign contributions and lobbyists to push their cause and agenda and have the states are hard-pressed to come up with new sources of revenue. So I understand that and may have turned the gambling away in space. An easy way to make money, at least on the front and without having to raise taxes very shortsighted policy because gambling causes nothing but problems with long-term problems that good and negative short-term gains from the revenue extra hundred casinos patterns that you have a lot of the social and economic problems down the road. A lot of these additional comments gambling in addition to the casinos in 37 states, including North Carolina currently have lotteries now.

The lottery was sold to North Carolina as you have suggested as a source of revenue for education specifically.

Despite these claims, however there is a an ongoing debate about whether or not that lottery revenue is actually going to education. In addition to the money that the government was already allocating for educational causes. Why do you believe that the lottery is a bad source of revenue for the state of the classic accounting gimmick that all states do whenever they're trying to promote them lottery where the casino they always try to feel good because you know it's gonna be for education gonna be for senior services and are usually the two that they tied to that at the end of the day, and honest studies and statistics show that it doesn't result in a massive increase in new money for education or for seniors or whatever your cause is what they want. I wanted God visiting out. Basically met the money may go to education by just means less money from the general fund education code not like to get the overwhelming influx of money. The major schools better and in fact the states that have adopted both lotteries in the casino. So the study show that not a reliable source of revenue over time and often no longer will spike it often so the product goes out and begins to decline in the course of the state, and develop usually new forms a gambling to basically generate and replace the loss of the money so bad, quality try and rely on stripping wealth from people and basically usually the most vulnerable people to try and fund your government and take advantage of those people rather than come up with something that grows economic pie rather than strips welcomed by citizens, elected officials take an oath to protect about 500 casinos in the United States, including approximately 260 Indian land casinos no casino gambling is not always something that we would typically associate with government-sponsored gambling, but that seems to be rapidly changing our country.

States are becoming more enmeshed with gambling interest through the approval of what is referred to as regional casinos, which are often the result of gambling agreements or compacts with Indian tribes. What specific role have state governments played in the spread of these regional casinos in the United States has a little bit of a different animal in the sense that that that was accredited through the federal government but they directed strike deals with the states and often the states will do it and then and in return.

Think cynical give the great goodness takes some form of money you know they don't have to because the Petaca grant federal or sovereign lands thereon, but they give them to the state that the money and in return for letting them get the agreement and move forward.

And what happens is even over time and states are getting more more and consider China bonded out into the commercial casinos recommend like to get 30 years for the proverbial cattle's nose under the tent keeps on escalating so you you bring in lotteries and I now have more more lotteries Ukrainian slot machines in a tiny casinos and then Pennsylvania is a classic example of the bill started out as Scott's only bill is going to help reduce property taxes and it was going out seniors and not undergoing help protect the horseracing industry quickly morphed into full-blown commercial casinos and we now have more casinos in Pennsylvania more slot machines and then Atlantic City and the state is no basically you're stripping a lot of wealth from their very citizens there again like this post is also employee down to the negative social effects of gambling, particularly casino gambling impact does casino gambling have I mentioned a number of things, but particularly on criminal activity in areas surrounding the casino. It's really outrageous what governments do during your life by pipe out. But I ignored and and that's probably because the gambling industry says on a very good job trying paint gambling as this wholesome good clean fun business and so is also known as a sleazy dirty business that that was mopped up but you know that if they change the name is no longer the gambling industry is now the gaming industry and a fun start on different professors and Nikon studies, a trend that mitigate and downplay the criminal element and also the problem gambling moment and say that there's only one earth 3% of all gambling problem and the number may be true for the the broad number of everybody in your state or your country but it's not true for the people who come to the casino and other studies have shown that the regular customers of the casino anywhere from 30 to 60% of our have a gambling problem and other studies show that where casino opens within a 50 mile radius crime goes up anywhere from about 8 to 10% and that all others, every other bad statistic you can think of increases, suicide goes up. Divorce goes up personal bankruptcy goes up. Embezzlement goes up and then take a look at Nevada. In particular, take a look at Las Vegas. They almost universally leave the country in almost all the statistics is an odd number one are usually number two foreclosures, you name it. Any any listing any bad problem. Things that are the cost you something. They leave the state and that's a valid point about the game. A lot of things in short-term tax revenue for the state and I understand people say, why don't gambling something Roscoe Gamble. It's their right. Let him go gambling master limitations generation tax monies may not rate, so what people don't understand if you don't go there even if you don't go to the casino all the problem. Circuit introduced into the state from the casino you ultimately will end up paying for the taxpayer research is shown that basically for every dollar the casino brings in. It creates about three dollars and social and economic costs that that are borne by the taxpayers ultimately 30 destroy families newly increase crime called for divorce and we all pay for that when we go to the casino or not. We already have casino it's operated by the Cherokee Indians in the western part of North Carolina but now there is a Indian tribe that is based in South Carolina, the Catawba Indian nation that is seeking to establish a gambling casino right here in North Carolina, about 30 miles west of Charlotte on the North Carolina South Carolina border and as news of this broke a number of months ago. What we found is this whole casino project idea had been sold to the local community. The county government. The city government.

The local Chamber of Commerce and citizens as just a a an economic stimulus for a hurting or economically depressed community and considering what you have said that really would not add up to bring a lot of revenue and prosperity to that area of the state.

Would you agree with that 100% what casinos again am going to sort a booming economy shall stand on someplace like Seattle phenolics got a booming economy filled with smart people and then go out to the growing what you see casinos. Gambling stability Indian casino state enabled casino you name it. What they do a great they picked out the second tier and struggling cities and their desperate ninth-inning jobs. Things are things are bleak, nobody coming around and also leg on offer you this glitzy casino and everybody gets what really excited while going to casino in our town rig casino jobs there and you don't have to go will Florida take a look at all and you go to Detroit 10 years ago casino that was correct about the cornerstone of the economic policy of the turnaround that struggling city. 10 years later largest city bankruptcy in the country. Casinos been out that city one bit. Atlantic City is the best case study, around 30 years of casinos right to have monopoly up and down the entire East Coast down the business and that was it was enacted back in the late 70s designed to transform a struggling seaside town and not a little too far from there and spent some time Atlantic City and eager learners. 12 shiny casinos built there and Roth account is a complete stop and not unite to go half block not in the block outside the casino next payday lenders cash for gold places, prostitutes, drug dealers, the counselor unemployment rate is still double digit, the poverty rate is actually increased in the 30 years the casinos that are there so billions of dollars raised and spent in that town and what what's happened and there's been no turnaround in that town at all finding a place where casino is opened as transform the town to become an economically viable town has been so sexually hard to argue you think about his comments on the your government is gone is considered now create an economic policy where the weight the growth is to get people to gamble just can't understand how any party with any LogiCal it makes any sense that the gambling industry. The monster that they use for slot machines to get people to play to extinction.

So that really is your elected official is that really what you want came up with is your is your economic developer turnaround struggling town. The bring in the business's business model is get people to play to extinction.

Think about that and really started consecrated that your elected officials. After leading people down nearly out of town for this week working on listeners go to learn more about the homes and government-sponsored gambling law think tank the Institute for American values is done. The study that just came out in September called why casinos matter that it's short and easy document that he can read that is a good collection in composited all the best studies and research other than done, both on casinos and lotteries, and welcome people to read my my blog.

I laid up for the gambling issues all over the country is called get government out a gambling toddler policy Council has distributed why casinos matter report to a broad range of elected officials, particularly those down in Cleveland County, North Carolina that are considering this Indian casino there.

Let me repeat Paul for listeners. The website which is get government out of gambling.org again get government out of gambling.org and we would encourage them to avail themselves of the resources that can be found there baby thank you so much for being with us on family policy matters and for the important work you are doing to draw attention to the harms of government-sponsored gambling nationwide. Thanks for your time and space family policy matters.

Information and analysis, future of the North Carolina family policy Council join us weekly discussion on policy issues affecting the family and if you have questions or comments. 91 907-0800 or visit our website and see family.org