OP ED: Casino Economic Impact has a Dark Side

By John Florez

On its surface, the casino measure has some appeal. For one thing, the project will give the current casino a much-needed improved façade; it will also enable the city to receive a crucial annual revenue boost to the tune of $1.5 million for the first six years of operation, followed by $1 million per year thereafter. But what every voter needs to understand is that this all comes with a price that far eclipses the short-term gains of the measure. 

Studies have shown that more that $5 billion is lost each year to gambling addiction, while another $40 billion is spent on social services and creditor losses. Gambling imposes economic hardships on our prison system and public assistance programs, as well as our legal system. Take a look at Connecticut, where the first Indian casino opened in 1992. That year, the state saw a significant increase in embezzlement cases. Research proved that in some cases, all of embezzlers’ stolen money was used to gamble at one of the two Indian casinos. These economic consequences are very real: in Ledyard, where Foxwoods Casino is located, the impacts of crime, general assistance, social services, improvements to roads, zoning enforcement and litigation and public safety and traffic has been estimated at $2.2 million. 

But the economic impact doesn't end there. The developers’ long-term objectives include an entertainment facility, a spa, and restaurants – all of which would no doubt have a negative impact on local businesses. These local businesses will also feel the impact of the traffic congestion that is currently a problem even without the new proposed venture. Is all of this really worth $1.5 million a year? Newport and other municipalities need to send a message to investors that we are a community open to innovation, high-tech jobs, and green industries. A few weeks ago during a meeting with the city's North End Planning Committee, Denver-based Matrix Design Group – the city's consultant for the innovation hub project – warned of the project being stifled should voters approve the casino measure. Innovation hubs have had enormous positive impacts in over 35 cities in the U.S. alone, generating millions of high-tech, cyber, green, and biomedical jobs. When an audience member asked the Matrix Group's Donald Brandes what the casino project would do to the future of the innovation hub, he warned that the project would likely not get off the ground, and urged proponents of the innovation hub to “take to the streets.” For me, this is the crux of the debate: what do you, as a citizen and voter, want Newport to look like in the 21st century? Newport is consistently included on the list of the most beautiful American cities, yet a recent study found that due to a lack of jobs, we can expect a decrease in population of 23% over the next 30 years. As voters, we can sow the seeds of progress and innovation. We have the tools needed to create substantial jobs that will want to make our children remain lifelong residents of this beautiful seaside community. This November, I am voting "no" to this proposed measure, and I'm voting "yes" for change, progress and innovation. I urge each of you to join me in voting "no" to the casino project, for the benefit of Newport and the future of our great city.

John Florez is a candidate for Newport City Council.

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