St. Paul Pioneer Press

Dear Editor:

While the American Gaming Association does not take a position on the issue of gambling expansion, we do find it necessary to address inaccuracies about our industry, such as those expressed in Laura Billings’ recent column, “Casinos may be a gamble Minnesota can’t afford.”  It is certainly within Billings’ right to express her opinion about the potential advent of commercial casino gaming in Minnesota, but her failure to get all the facts before publishing this litany of falsehoods about the industry distorts the issues and serves a gross disservice to your readers.

Billings centers her arguments against casinos on the findings of Earl Grinols, who happens to be a longtime and vocal gambling opponent.  Grinols’ assertions regarding the alleged “social costs” of gambling echo a familiar refrain that anti-gaming activists have relied on for more than a decade.  However, these arguments fail to hold water upon even a cursory examination of the large body of independent research detailing the impact of casinos on the communities in which we operate.

Contrary to the opinions expressed in Billings’ column, several independent studies indicate casinos can provide a benefit to their host community.  In fact, research conducted on behalf of a federally funded commission to study gambling found that “…[A] new casino of even limited attractiveness, placed in a market that is not already saturated, will yield positive economic benefits on net to its host economy.”  In addition, studies conducted for the commission found that communities closest to casinos experienced a 12 percent to 17 percent drop in welfare payments, unemployment rates and unemployment insurance after the introduction of casino gaming. 

Research for the commission also found no link between the introduction of casinos and bankruptcy or crime.  In fact, of the top 15 states with the highest rate of increase in bankruptcy filings, only one (New Jersey) is a commercial casino state, and seven of the 11 commercial casino states fell below the national average in terms of bankruptcy filing growth rates during the 1990s.

Research for the federal commission also contradicted common myths about the impact of casinos on local businesses.  The research found that “The preponderance of empirical studies indicate claims of the complete ‘cannibalization’ of pre-existing local restaurants and entertainment facilities by a mere shift in resident spending is grossly exaggerated.” 

Billings’ reliance on the claims of a noted anti-gambling activist have given your readers a distorted view of the potential impact new casinos could have on their communities.  Before important decisions about gambling expansion are made, it is important that your readers and decision makers be armed with real facts rather than this exhausted rhetoric.

Sincerely,

Frank J. Fahrenkopf, Jr.
President and CEO