Lexington Herald-Leader

Dear Editor:

While the American Gaming Association (AGA) does not take a position on the issue of gambling expansion, we do find it necessary to address misconceptions about our industry.  On that note, your readers deserve to know that an opinion editorial by Mr. Richard Dawahare, “We Can’t Build Economy on Gambling’s Shifting Sands” (Herald-Leader, May 14), is replete with errors.  So filled with error is Mr. Dawahare’s article that he creates his own reality by using spurious logic and creating facts out of whole cloth.

First, his spurious logic.  As to the financial straits that a few gaming states are experiencing, there is no evidence, nor does Mr. Dawahare cite any, that demonstrates gaming is at fault for the difficulties.  Economics 101 teaches us that a very complex mix of factors cause economies to flourish or struggle.  To single out one industry for acclaim or blame is simple minded.

Mr. Dawahare is also quick to cite the National Gambling Impact Study Commission (NGISC)  when it suits his needs, however, he conveniently neglects to mention that the NGISC reported that casino gaming creates jobs and reduces the level of unemployment and government assistance in communities that have legalized it.  In fact, the Commission found that communities closest to casinos experienced a 12 percent to 17 percent drop in welfare payments, unemployment rates and unemployment insurance.  And your readers should know that contrary to Mr. Dawahare’s assertions much of this information was developed by reputable organizations that are not funded, affiliated or aligned with the gaming industry in any way.

Mr. Dawahare also presents a laundry list of ills he suggests are caused by gaming, and crime heads his list.  Here again, research conducted on behalf of the NGISC found no link between gambling and crime, gambling and foreclosure rates, or gambling and bankruptcy.  On this latter subject, no less an authority than the U.S. Treasury Dept. has drawn similar conclusions.

I also cannot let it pass that the one source the writer does cite by name has had his studies debunked at every turn, and none of his results has been peer-reviewed.  So flimsy are the results of his work that he has been compelled to cite himself as a source.

Many Americans believe that casino gaming adds value to our society, and there is ample evidence to validate this belief.  Mr. Dawahare disputes that, which is entirely his right, but he has responsibility to inform your readers with the facts, not his facts.

Sincerely,
Frank Fahrenkopf, Jr.
President and CEO
American Gaming Association