How Will Gambling Affect Local Businesses?
(Interesting side note: As I sit here writing this, a woman (obviously a Penn supporter) just jumped out of a car, pulled my "No Casino" sign out of the ground, and threw it down the street. Although a very important issue, I certainly hope folks will keep their heads about this and that it doesn't become ugly.)
- Casino revenue comes at the expense of the local economy. Casinos divert dollars from local businesses and restaurants, as a result, local towns see no change in overall per capita income after the creation of a casino. 1
- Casinos are “Cannibalistic”. Cannibalistic means that they “eat” other forms of local revenue because money spent gambling is money not spent in local establishments. Many communities like Ledyard (near Foxwoods) have seen a significant negative impact on local business. 2 (Although only one source is noted here, many studies have found the same.)
- Most Nearby Businesses Will Lose Money. A study on the costs and benefits of casinos found that for every $1,000 in increased casino revenue, businesses up to 30 miles away lost $243. 3
- Gambling hurts worker productivity. Local businesses can anticipate increased personnel costs due to increased job absenteeism and declining productivity of workers. 4
I've only sited a few sources here, but a host of studies have published the same findings.
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1 National Gambling Impact Study Commission Final Report, 1999, Chapter. 7 (p. 7-8), Chapter 4 (p.4-4), Chapter 7 (p.7-21 Table 7-2), Chapter
2 Preserving the Character of Foxboro, http://www.youtube.com/watch?v=cNjJTViwCK0, (19:30 – 21.05)
3 Grinols, Earl L. Gambling in America Costs & Benefits. Cambridge University Press, 2004 (p.77) w/additional reference http://www.umb.edu/editor_uploads/images/centers_institutes/financial_services_forum/DiceOrNoDice.pdf (p.12)
4 Grinols, Earl L. and David B. Mustard. "Business Profitability versus Social Profitability: Evaluating Industries with Externalities, the Case of Casinos." Managerial and Decision Economics. 2001. Pg. 151.
