Annette Meeks Statement on New Gambling ProposalApril 22 2005MINNEAPOLIS, MN – As state government officials continue to debate various gambling proposals, Center of the American Experiment today released a report examining the social costs of expanded gambling. “Minnesota political leaders can’t talk about expanding gambling and at the same time ignore the true costs associated with gambling,” said Center of the American Experiment Chief Executive Officer Annette Meeks. “We hope this report is a wake up call for those who believe that expanded gambling is harmless and an easy way for the state to collect more revenue.” The Minnesota Policy Blueprint report, entitled Gambling in Minnesota, provides a history of gambling in Minnesota and an overview of gaming proposals currently before the legislature. The report highlights the fact that since Governor Luther Youngdahl rid Minnesota of slot machines in the 1940s, gambling has slowly made its way back into Minnesota – culminating in numerous gambling expansion proposals that are currently being debated by the state legislature. The report notes that “it appears that there is no end in sight to our state’s growing addiction to readily available gambling and its perceived benefits of easy money.” The report points out that expanded gambling is not easy money and comes with the following social costs: Political Corruption: Much of the evidence suggests that corruption among public officials is especially prevalent in areas with extensive casino gambling. For example a former Louisiana Governor, seeking approval of land-based casinos, was convicted of extortion, racketeering, and fraud relating to his dealings with applying for casino licenses. We have even seen aggressive Las Vegas casino lobbyists attempt to import questionable tactics into Minnesota’s legislative process. Bankruptcy: Counties with five or more gambling establishments were found to have 35 percent more bankruptcies. Suicides: According to Dr. David Phillips, a University of California-San Diego sociologist, Las Vegas “displays the highest levels of suicides in the nation, both for residents of Las Vegas and for visitors to that setting.” Family Problems: Research has demonstrated a relationship between gambling and a breakdown in the family structure. For example, in Harrison County, Mississippi, which has ten casinos, divorces increased by 300 percent after the introduction of the casinos. Social Costs: According to studies by Baylor professor Dr. Earl Grinols, gambling costs the American economy $54 billion annually. Along with encouraging legislators to conduct a tangible cost/ benefit analysis, the report also asks them to consider the fact that a state-owned casino would “put the state in the position of preying on the citizens it purports to serve.” Gambling in Minnesota report concludes with the following words of caution to state policymakers, including Governor Pawlenty, who are advocating for the expansion of gambling: “They should carefully study the social costs, carefully weigh the public policy problems, and carefully consider their own guiding principles. We believe that serious reflection on these issues will, in fact, lead to much different conclusions on whether expanded gambling is good public policy.” |