Newsday (N.Y.)

Dear Editor:

While the American Gaming Association does not take a position on state decisions regarding gambling expansion, we do take issue when misinformation becomes a part of the public debate (op-ed by Robert Goodman on “The Gambling Solution: Spreading Casinos and Lotteries to Raise Revenue will only Cost New York in the End,” March 3).

A widely recognized gambling opponent trained as an urban planner, not an economist, Goodman neglects numerous independent government studies that contradict his claims on the economic impact of gaming. After a two-year study, the congressionally mandated National Gambling Impact Study Commission (NGISC) in 1999 found that casino gaming has yielded economic benefits in many communities, creating quality jobs, generating economic development, and reducing unemployment and government assistance.

In addition, the NGISC’s research found that pathological gambling prevalence rates in the United States were comparable to those found in a government-funded study conducted 25 years before, despite a significant expansion of gambling opportunities. The research also concluded that pathological gambling was no higher in communities within a 50-mile radius of a casino than in areas farther from casinos.

Additional government-backed studies have concluded that the presence of casino gaming does not cause an increase in bankruptcy and crime. A report released by the U.S. Department of the Treasury in 1999 found “no connection between state bankruptcy rates and either the extent of or introduction of casino gambling,” while a report conducted by the General Accounting Office (GAO) found no substantiated link between gambling and purported social costs. Research on crime rates conducted for the NGISC found that “…the casino effect is not statistically significant for any of the …bankruptcy or crime outcome measures. …”

But you don’t have to take our word for it. To get a real perspective on the impact of casinos, it’s instructive to ask those with firsthand experience, such as the mayors of Elgin, Ill.; Gary, Ind., Bettendorf, Iowa; Biloxi, Miss., and countless other gaming jurisdictions, who will undoubtedly credit casinos for enhancements to the community and the improvement of quality of life for their citizens. According to a survey conducted for the AGA by national pollsters Peter Hart and Frank Luntz, 70 percent of residents of casino counties believe that casinos have had a positive impact on their communities. If given the option again, 68 percent said they would vote to keep casinos in their communities.

Unfortunately for Dr. Goodman, now that government-sanctioned research has reached conclusions contrary to his, he can no longer pass off his opinion as fact.

Sincerely,

Frank J. Fahrenkopf, Jr.
President and CEO