St. Louis Post-Dispatch

Dear Editor:

In advocating higher taxes on casinos, your Oct. 14 editorial “Honk if you hate taxes!” cites the lessons of Economics 101 but then ignores them in the process.

It would probably come as a surprise to the 350,000 casino employees nationwide—and the 11,500 in your own state—that casinos create no economic value. That would also be news to those communities and local businesses that have thrived as a direct result of casino gaming. In Missouri, a half-billion dollars in tax revenue has been funneled back into highway construction, street lights, fire and police department equipment and personnel, community centers, and many other improvements since casinos first opened in 1994. Research conducted in 1999 for the National Gambling Impact Study Commission also demonstrated conclusively that casino gaming is an engine for economic development, delivering reduced unemployment and reduced welfare dependence in addition to millions of dollars in capital investment and tax revenue.

While your editorial failed to see the benefits of legalized gambling, every year more than 51 million people recognize its entertainment value, making 297 million trips to casinos. An overwhelming 87 percent of Americans feel they should be able to go into a casino, have their own budget and spend their disposable income the way they want, just as they do at ballparks, movie theaters and shopping malls.

Contrary to your editorial, the prevalence of pathological gambling, according to research by the federal commission and Harvard Medical School’s Division on Addictions, is about 1 percent. While the industry is partnering with government and the research community to improve treatment and prevention of this disorder, it’s important to recognize that the vast majority of Americans enjoy the product as entertainment and gamble responsibly.

As we’ve seen in Illinois, higher taxes have translated to fewer jobs, a less attractive product and, ultimately, a loss of overall revenue for the state. Perhaps the Post-Dispatch would not take such a cavalier attitude if it considered the true consequences for the citizens of Missouri from a tax increase on casino gaming.

Sincerely,

Frank J. Fahrenkopf, Jr.
President and Chief Executive Officer