Casino Gambling in Kentucky - Essay Example

William West English 102 Iddah Otieno 11-06-10 Casino gambling in Kentucky The argument in favor of casino gambling in Kentucky is based on its supposed ability to meet economic goals. People pass judgment about its disadvantages without really knowing the real benefits of having casinos in Kentucky. In other part of the states, casino gambling is allowed while others ban the activity. In Kentucky, Stutz, (2010) stated the issue has remained unresolved, with legislations still pending and holds off until 2011 legislative. The time has come to resolve this issue and to push the bill for casino establishment. Legislation is wanted because the economic benefits coming from casinos are very much needed by the people of Kentucky and the government. In this context, the legislation matter has been the campaign proposal of Governor Steve Basher in his bid for election. Associated Press (2007) stated that the proposal of the Governor to legalize casinos in Kentucky is based on the assumption that it will bring growth to the economy in terms of revenues and taxes. The proposal has been submitted for a legislative process of approval and will also be presented to the Kentucky General Assembly for consent. The proposed bill if passed, allows 9 to 12 casinos in Kentucky, and is expected to bring estimated revenue of $600 million a year in tax revenue. In this critical issue, the Kentucky General Assembly composed of the people of Kentucky have been given the chance to have their voices heard in a direct poll whether they agree with this move or not. The recent events shown in the news carried by WBKO (2010) reported that the legalization of casinos in Kentucky did not pass the legislative session. There are possible reasons for the rejection of the proposal as there are studies that show disadvantages for having Casinos in Kentucky. The probe studies of Anderson and Nevada Council on Problem Gambling show that the proliferation of problem gamblers has negative impact on their lives. Andersen viewed it as a bad social policy because of the large social costs it entails; it makes it harder for problem gamblers to reform, and makes it contributory to social corruption. But Andersen and those concerned in his study are missing the points of the benefits of gambling, and making it appear that it is one of the deadliest sins in the world. For example, Andersen said that the government is “supposed to be the minister of God, Romans 13”, but its moral stance is compromised when it enters into legalized gambling. However, it could not be discounted that there are also benefits coming from the legalization of casinos. First, there are benefits derived from tourism. The neighboring Indiana is reportedly gaining from the absence of casinos in Kentucky. (Schreiner) argues that talks about the issue showed that gambling is present anywhere, and if people are prepared to spend it somewhere, why not spend it in Kentucky where they will be the receiving end of benefit Casinos are crowd drawers anywhere because of its tourism value. Wherever it is established, casinos become a host to several other businesses that boosts the economy in the place. For example, Barsky and Nash reported the lavish casinos in Las Vegas and Macau become tourist destinations and vacation places for a great weekend. Taking this as an example, if casinos are allowed in Kentucky, there will be more tourists in this place, and there will be more money and income generated. Next are the benefits of employment. That there will be many people who will be benefitted with employment of the 12 proposed casinos cannot be denied. This will be a source of employment for the service sector of Kentucky, like people who will man the different casino tables, cashiers, service crew and others who are behind the scene. It will also create a spiral effect in other areas of employment, such as construction and infrastructure development. In this aspect, casinos will have an economic effect to 4.3 million populations, (report as of 2009), of this state (U.S. Census Bureau) Benefits of gambling extend to health promotion among elders, as a new discovery of science, John Mathers (2006) cited scientists’ findings that casino gambling is actually promoting mental health among the senior citizens and retirees. In this article, Mathers stated that results of studies showed that “mental activity such as the pattern recognition in slot machines help senior citizens stave off effects of mental degenerative disease like Alzheimer’s”. This article also showed studies that proved senior citizens who gamble are not prone to suffer depression, alcoholism, or bankruptcy as the game keeps their mind sharp as well as providing fun and recreational activity to do. Policy makers in Kentucky are attracted to legalize casinos because of the estimated $600 million tax revenue it will create yearly. In 2008, 500 nations.com. news report stated Governor Beshear still holds on the possibility of, this revenue will be a big help to the state who is presently suffering from a $900 million budget deficit. Gambling is not only for gambling sake, but for many organizations, it is a source of funding. For example, lotteries, large bingo and casino nights are favorite charity venues of civic organizations to fund their various activities. Some go to casinos for entertainment and to watch shows, and the prospect of winning in the games is an added bonus. Many casinos provide a variety of shows and entertainment that makes going to casinos an eventful experience. Because of these, tourists look forward to going to casino resorts as a form of relaxation and as a getaway. The disputes on setting up of casinos in Kentucky are based on political, social and religious implications. Different ideas have been solicited by the Kentucky government from its constituents and among those who stood firmly against it is the religious sector. Shreiner (2007) stated religious denominations represented by 2400 churches, with 780,000 total memberships in Kentucky, are all against its establishment saying that “it will further encourage gambling addictions, crime, family destruction, personal irresponsibility and the corruption of government.” This sector claims that supporting gambling is one way of imposing regressive tax that would hurt the people, Shreiner said. Oppositions to gambling, other than those stated above, according to “Cost and benefits” study, are increase in government spending for security and infrastructure, the increase of crime incidences, rise in bankruptcies of problem gamblers, unemployment, and effect to small business who lose customers in favor of the casinos. These are social costs that eventually become burden of the state. Badger & Herman (2008) in their study of the social consequences to gambling in Kentucky, showed financial losses, health problems, increases in crimes, and harmful effects to family and children as among the negative issues on gambling. On this, they stated that the tax benefits owing to casinos should be set aside in the discussions but should put more weight on its impact to families affected particularly on children. Negativity is also deeply expressed by said authors in the cost to government of problem gambling caused by pathological gamblers. Accordingly, the amount spent by the government for these gamblers is estimated at $2,945 annually, spread in therapy, treatment cost, unemployment insurance and food stamps. Cited study of Dr. John Kindt of University of Illinois at Urbana Champaign, stated “casinos create three dollar social cost for every dollar the state collects because of increased gambling addiction, bankruptcies in crime (Badger & Herman). In the study of economic cost of expanded gambling in Kentucky done by Grinois in 2008, the average number of Kentuckians visiting other state casinos is 16%, and this percentage of population is expected to double by at least by 35% when casinos are established in Kentucky. Parallel to this, will be the increase on social cost spending by the government, which according to Grinois, will be represented by a 100% increase in pathological and problem gamblers, amounting to $761,241,600 annually. Problem gamblers, defined in this study, are those people “that display gambling behavior that causes disruptions in psychological, physical, social or vocational areas of life”; while pathological gamblers are those with maladaptive gambling behavior, described as follows:…needing to gamble with increasing amounts of money, repeated unsuccessful attempts to control, cut back, or stop gambling; chasing losses; lying to family members or others to conceal the extent of gambling; committing illegal acts such as forgery, fraud, theft or embezzlement to finance gambling; jeopardized or lost significant relationships, jobs or career opportunities; relying on others to provide money to relieve a desperate financial situation. ( Grinols) Equating the social cost with the projected revenues from gambling, Grinois study showed that the government will have to wager $14 billion to gain $500 million in tax revenue from casino gambling. Further to this, casinos are owned by foreign investors, and it is rationalized that their profits will not remain in Kentucky but will be forwarded to its stockholders and owners elsewhere. Aside from reasons aforementioned, the cost of crime support, family cost and abused dollars are added as among the social costs of gambling. Family cost, as explained by Grinois are those related to divorce, separation and custody fights; while costs of crime are the police, apprehension, adjudication, incarceration and supervision costs. As shown by Barsky and Nash, Las Vegas and Macau are two places that have earned its reputation for casino operations. So far from these places, no reports have been gathered that directly identifies problems that require closures or cancelling operations because of damages to people. The continuing growth of casinos not only in these places but also worldwide belies the belief that people who play in the casino becomes addicted and everyone who starts playing will one day become miserable and wind up broke and bankrupt. Casinos have also become the number one source of income for Las Vegas and in other areas where casinos are established, and it could be surmised that it has contributed well enough to its economy. Think about the prospect that if all the casinos are shut down, what would happen to its employment and economy. Although there are lots of negative reactions about legalization of casino in Kentucky, I believe that it should be pushed through. Gambling addiction is admittedly a serious problem, but it is a personal one, and not a problem of the activity. This should not be enough reason to prohibit setting up casinos because a few have become addicted. For every problem, there is a solution, and personal behavior is another concern not related to casinos anymore. Problem gamblers will always exist because of their behavior and they will always find ways and places where to gamble, and it is not always in casinos where these behaviors will be observed. Therefore, the social costs of problem gamblers should not altogether be ascribed to casinos as it is generalized to all forms of gambling. Gambling in casinos, per se, if played moderately is a venue for entertainment, revenues and an opportunity for growth of the economy. Works Cited 500 Nations. “Kentucky casinos still possible”. News. 2008. 03 November 2010 Barsky, Jonathan and Nash, Lenny. “All bets are on Macau Hotels”. Industry News. Hospitality Net. 2010. 03 November 2010. Badger, Ann and Hernan Tracy G. “The Social Consequences of Legalized Gambling in Kentucky”. Issue Brief. Kentucky Youth Advocates, 2008. pp. 1-4. Bruce Schreiner. “Kentucky proposal faces contentious debate”. News Associated Press. 2008. 04 November 2010 “Costs and Benefits of Casinos”. Abstract. Community Costs and benefits of Casino Gambling in the Catskills Mountains. 03 November 2010. Grinois, Earl. “Gambling in America: Costs and Benefits”. Cambridge. Cambridge University Press, 2004. Howard Stutz Kentucky, “Delaware put off gaming expansion”. Gaming News Casino City Times. June 4, 2010. 04November 2010 ”Indiana officials bracing for possible Kentucky casinos”. Associated Press. 2007. 04 November 2010 Mathers, John. “Gamble or go nut: Scientist discovers gambling has a benefit for mental health”. News. Slot Secrets Online.2006. 03 November 2010 Nevada Council on Problem Gaming.“Do Casinos cause problem gambling? 04 November 2010 U.S. Census Bureau, “Kentucky population”. 03 November 210 WBKO. “Beshear Says Proposal to Legalize Casinos in Kentucky Wont Pass.” 03 November 2010 Read More