Mr. Speaker, gambling is exploding throughout our country. I am deeply concerned about the impact this is having on our society. Gambling destroys families and preys on the poor. Mr. Speaker, I would like to share some comments from a…
Mr. Speaker, gambling is exploding throughout our country. I am deeply concerned about the impact this is having on our society. Gambling destroys families and preys on the poor.
Mr. Speaker, I would like to share some comments from a recent speech delivered by Rev. Tom Grey, national spokesman and field director for the National Coalition Against Legalized Gambling and National Coalition Against Gambling Expansion. Rev. Grey gave these remarks to the Seventh Annual Commercial Real Estate Deal Maker Forum on October 24, 2006, in Cleveland, Ohio, as Ohio voters were considering the question on the Ohio ballot to legalize casino gambling. The proposal, which included money allocated for education, was dubbed the ``Earn and Learn'' initiative. Voters defeated the initiative 57-43 percent on election day, November 7.
Tom has worked to bring attention to the harm gambling can bring to families and communities. Excerpts of Tom Grey's speech follow:
Gambling is like a fungus. If it gets started in one
region, it tends to spread. We saw this happening, and in
1994 we formed, from the bottom up, a national organization
to fight it. We gathered local and state activists and formed
the National Coalition Against Legalized Gambling. We started
sharing information and we challenged the spread of gambling
at the ballot box. We did that in the peak of hard times for
states. State budgets were upside down all across the
country, and the casinos were pitching gambling as `the force
of history, the wave of the future.' In the beginning there
were bands playing while governors cut ribbons and welcomed
the riverboats as economic salvation. The promoters declared
that gambling was `inevitable,' but a decade later we now
know it isn't even desirable.
The wave of gambling hit a wall when we started exposing
the product. Key votes in Ohio, Rhode Island, Missouri, and
Florida surprised the gambling promoters. Voters turned it
down. They burst the balloon of inevitability. The promoters
lost. Ordinary citizens were successful. It's at the ballot
box where we have our best results. They can buy legislators
with their threats and big campaign contributions, but they
can't buy elections.
Gambling is and always has been an `other side of the
tracks business.' Do you really believe that valued lakeside
museums and gateway sports complexes are enhanced by having a
casino next to them? In addition, there are terrible side
effects with this product. Read the label. `May Cause'--
no--`WILL cause addiction, bankruptcy, crime and
corruption.'
Well, most of you are here this morning because you are
business people whose businesses rise with the tide of a
flourishing Cleveland, the community where you live and do
business. Let me use an example from one of America's most
admired businessmen from the past named Herb Taylor.
For Taylor, a deal wasn't a good deal unless it was a good
deal for everyone. Every deal, and every major business
decision, had to pass these four questions, or tests:
Is it the truth?
Is it fair to all concerned?
Will it build good will and better friendships?
Will it be beneficial to all concerned?
is it the truth?
The casino crowd has made billions turning teachers, school
kids and PTA parents into gambling lobbyists. They do this by
promising money for education, and that's exactly what
they're doing in Ohio. Gambling promoters need to pick
education or some other worthy community cause to buy their
way into our communities or states. They want us to overlook
the fact that the lion's share of the money goes to them. In
Ohio, it's 55 percent. They want us to think the money's not
going to the gambling promoters; they want you to think it's
going to the schools.
Gambling isn't new money. It's re-directed money. It's
trading dollars. Gambling came to New Mexico in 1994, and by
1998 the state's Secretary of Taxation and Revenue reported
roughly $1 to $1.2 billion per year in other taxable sales
had fallen off the balance sheet. Entertainment, retail,
restaurants, and services took huge hits from the casinos,
and as a result, paid far less in taxes. The best the
economists could say was the economy was playing a `zero sum
game.' The casinos were winning and the other businesses were
losing.
Is the gambling sales pitch the truth? NO! No state has
gambled itself rich, including Nevada--a state that should
serve as a model for what a state can produce with gambling.
Nevada recently passed the largest tax increase in that
state's history. Republican Governor Kenny Guinn told his
legislature in his inaugural address, `Our revenue system is
broken because it has relied on regressive and unstable
taxes.' (Guinn understands that when you take money from the
citizens to run the government, it's still taxes, even if you
do it with a slot machine.) Guinn told his legislature,
`Implicit in this (gambling) tax strategy was a belief that
the revenues from gaming and tourism could keep pace with our
growing and diverse population. Unfortunately, this strategy
has failed.'
Nevada ranks near the bottom in per pupil spending on
education, and spends less per capita on Medicaid than any
other state. If those two areas don't concern you, take a
look at where Nevada ranks in high school dropout rates, teen
pregnancy, and children living in poverty. If the epicenter
of gambling can't gamble itself rich--if the poster-child of
casino-gunded government can't balance the budget, and if the
model of slot machine largesse fails its kids so miserably,
why would Ohio want to follow Nevada on its downward path?
is it fair to all concerned?
The simple truth is that 30 to 50 percent of casino
gambling money comes from problem and pathological gamblers.
Can anyone think of anything more cynical than funding
education on the backs of sick and troubled people?
There are about 400 of you here this morning. If casinos
come to town, you can expect about 12 of you will become this
kind of addicted gambler. You might not steal, but the
addiction will likely cost you your home, your savings, your
family, and your self respect. It could be you, your spouse,
your siblings, your children. In the end, this addiction
humiliates formerly great citizens to the point of
desperation and even suicide. Gambling addicts think about
suicide more than any other addictive group, and they act on
those thoughts.
Inviting a casino to town is playing Russian roulette with
your friends and neighbors; employees and business partners.
At 3 percent, which is conservative in a casino town, it
would be like giving you a handgun with 400 chambers, and 12
of them are loaded. Are you sure you want to pass that around
the tables? Are you willing to pull that trigger?
New addicted gamblers cost more than $11,000 each--MINIMUM
in `externalities.' That's extra costs the society pays for
law enforcement, incarcerations, lost worker productivity,
divorce, health care and the like. Gambling isn't
entertainment like shopping or the movies. It always brings
with it a tide of what we call the ABCs of Gambling:
Addiction, Bankruptcy, Crime and Corruption. These cost the
state, and the taxpayers, and you, the businesses, money.
That's why gambling is a net loss to the economy.
So what's your share? Let's do the math. Park a casino in
your town, and the addiction rate will hit 3 percent or
higher. Each new addict costs the economy more than $11,000.
That's about $33,000 for each hundred people, or $330 a year
for each of you. And that's using the most conservative
numbers available!
will it build good will and better friendships?
Well, I doubt it. Making slots promoters rich by turning
citizens into losers isn't a friendly relationship. It's
adversarial, predatory and parasitic. It doesn't build
friendship. It builds cynicism and despair. Good will means
the customer goes home and says I got a good deal.
Why does gambling have to keep expanding? Why do the
casinos need to be open at 3 in the morning? Because that's
what it takes to suck the addicted people dry. You just don't
see many church-going college graduates that pay their credit
cards on time yanking on slot machines at 3 in the morning.
Did you notice this proposal has already set the stage for
the conversion of slots parlors into full-blown casinos?
Corruption is government trying to make losers of its
citizens by legalizing something that damages the very health
of its citizens, all under the guise of a painless revenue
stream. Take another look. The revenue stream is running
backwards, and the pain is intense. History has proven this--
over and over again. Gambling does not build friendships. It
builds dependencies. It breeds corruption.
Will it be beneficial to all concerned?
Beneficial to all means everyone should be better off, not
worse off. John Kennedy once said a rising tide lifts all
boats. If gambling made all winners, it would be beneficial
to all concerned. Of course, gambling makes losers and the
citizens are worse off because of that. Even the people who
never gamble lose money: the citizens and taxpayers. They get
stuck with additional costs that they didn't have before:
those public health and crime costs that ALWAYS follow
gambling.
In order to enrich themselves, these slots promoters are
asking you to divert money from legitimate businesses, move
jobs from real commerce to casinos, and give the taxpayers
the bill for the social costs. Remember, the promoters openly
admit they expect Ohio to sacrifice the health and lives of
109,000 of its citizens. They propose to make those people
very sick, and then spend another $28 million to treat them.
And even that sum isn't going to cover the bill. Not by a
long shot. Do the math.
Multiply that 109,000 new addicts the promoters ADMIT they
will cause, times the $11,000 each for social costs. That
comes to $1,199,000,000 loss for the economy of Ohio. Why
would we accept making 109,000 people sick, and then losing
more than a billion dollars from the economy to boot?
The Pew Research Center just this year found three
important changes in Americans' thoughts about gambling.
First, they found that 7 in 10 Americans say that legalized
gambling encourages people to gamble more than they can
afford. That's up about 10 percent in the past 10 years.
Second, a plurality, 42 percent of adults say casinos have a
negative impact on their communities, while only about a
third, 34 percent, say casinos have a positive impact. Third,
and most revealing, the study found that only 23 percent of
Americans actually enjoy gambling. That's down from 34
percent just 10 years ago. Think about that. If your product
drops 11 percent in the people who enjoy it, you're in
trouble.