Casinos
Posted: Thu Jun 08, 2006 10:11 am
As they would impact our economy in both direct and indirect ways - I believe that this topic is properly situated in this forum - but certainly should be examined outside of Jim's original issue which was petitioner's that were using underhanded techniques to gain signatures. That is a BIG problem that I think would be diluted by any further discussion on Casinos in that thread. Hence my response to Jim's posting of Ken's article here:
To be fair I have not read the Buffalo report yet; however, I have found a few other studies that have examined Casinos over a substantial time period in order to fully evaluate t heir impact on the surrounding communities.
The first is in .pdf and I have no desire to retype it so I will type the highlights of the conclusions and the url for anyone who wishes to examine the data and scientific and statistical methods applied:
From the University of Chicago:
http://www.norc.uchicago.edu/new/pdf/5.pdf
Highlights:
(1) "The Casino Effect is not statistically significant for any of the bankruptcy or crime outcome measures..." [note: these are for crimes against persons and real property - 'white collar' crimes and those that fall in the jurisdiction of the FBI were not evaluated]
(2) "Per capita casino expenditures [...] rises increase 237%..." [note: this is for all casino spending, including restaurant, hotel, gift, etc... this is to say - people in the area spend more at a casino than they would if there were not one present]
(3) "a marked decrease in the percentage of the labor force that is unemployed, -12 % from an average unemployment rate of 6.5%..." [note: this translates into a full percentage point less on the rate - i.e. from 6.5% to 5.5%]
(4) "a marked decrease in the receipt, on a per capita basis, of income-maintenance (welfare) dollars (-13 %)..." [note: for the last two points the overall effect does not lessen the overall per capita income - there is NO effect on overall per capita income]
I urge everyone who is interested in this issue to read the full report. The next section related anecdotal data from residents in the area that slightly contradicts the data presented in this section. For example: Despite the overall decrease in unemployment in areas with Casinos, the respondents in several communities reported that they felt that unemployment was unchanged. Similarly, although there was little change in crime statistically - respondents in many commun ities felt there was a significant increase in crime.
It seems it would be important to understand why the discrepancy in data vs. perception. Is it because there is more coverage of crime with the media sensation of a Casino? Are the crimes reported as related to Casinos actually replacing crimes that would have taken place elsewhere - thus negating the statistical impact?
Another interesting report comes from the US General Accounting Office:
http://www.gao.gov/new.items/gg00078.pdf
Their results are similar, but they are more direct in their statement that the sociological effects of gambling are less well studied for situations not including pathological gamblers. In evaluations of social outcomes for pathological gamblers - the markers are expectedly far more negative than the general populace. In other words - people that are addicted to gambling are more likely to get into financial and social trouble just as people who are addicted to alcohol are more likely to get into trouble.
However, neither study concludes that existence of a Casino increases the occurrence of problem gambling. And after talking with a few people that own (or have owned) local service service stations - the Ohio Lottery certainly provides at least one outlet for such addictions - as does the Internet. What the reports DO say is that those that are problem gamblers gamble more at a Casino than they do in the lottery. No data has been evaluated to compare internet amounts to casino amounts.
In any event I am still reviewing various university results (I didnt bother with the hospitality industry or social organizations for obvious reasons).
It is interesting stuff - not nearly the society killer that many would ave you believe; however, still an industry that would require proper planning and evaluation.
FFT -
Peace,
~Charyn
To be fair I have not read the Buffalo report yet; however, I have found a few other studies that have examined Casinos over a substantial time period in order to fully evaluate t heir impact on the surrounding communities.
The first is in .pdf and I have no desire to retype it so I will type the highlights of the conclusions and the url for anyone who wishes to examine the data and scientific and statistical methods applied:
From the University of Chicago:
http://www.norc.uchicago.edu/new/pdf/5.pdf
Highlights:
(1) "The Casino Effect is not statistically significant for any of the bankruptcy or crime outcome measures..." [note: these are for crimes against persons and real property - 'white collar' crimes and those that fall in the jurisdiction of the FBI were not evaluated]
(2) "Per capita casino expenditures [...] rises increase 237%..." [note: this is for all casino spending, including restaurant, hotel, gift, etc... this is to say - people in the area spend more at a casino than they would if there were not one present]
(3) "a marked decrease in the percentage of the labor force that is unemployed, -12 % from an average unemployment rate of 6.5%..." [note: this translates into a full percentage point less on the rate - i.e. from 6.5% to 5.5%]
(4) "a marked decrease in the receipt, on a per capita basis, of income-maintenance (welfare) dollars (-13 %)..." [note: for the last two points the overall effect does not lessen the overall per capita income - there is NO effect on overall per capita income]
I urge everyone who is interested in this issue to read the full report. The next section related anecdotal data from residents in the area that slightly contradicts the data presented in this section. For example: Despite the overall decrease in unemployment in areas with Casinos, the respondents in several communities reported that they felt that unemployment was unchanged. Similarly, although there was little change in crime statistically - respondents in many commun ities felt there was a significant increase in crime.
It seems it would be important to understand why the discrepancy in data vs. perception. Is it because there is more coverage of crime with the media sensation of a Casino? Are the crimes reported as related to Casinos actually replacing crimes that would have taken place elsewhere - thus negating the statistical impact?
Another interesting report comes from the US General Accounting Office:
http://www.gao.gov/new.items/gg00078.pdf
Their results are similar, but they are more direct in their statement that the sociological effects of gambling are less well studied for situations not including pathological gamblers. In evaluations of social outcomes for pathological gamblers - the markers are expectedly far more negative than the general populace. In other words - people that are addicted to gambling are more likely to get into financial and social trouble just as people who are addicted to alcohol are more likely to get into trouble.
However, neither study concludes that existence of a Casino increases the occurrence of problem gambling. And after talking with a few people that own (or have owned) local service service stations - the Ohio Lottery certainly provides at least one outlet for such addictions - as does the Internet. What the reports DO say is that those that are problem gamblers gamble more at a Casino than they do in the lottery. No data has been evaluated to compare internet amounts to casino amounts.
In any event I am still reviewing various university results (I didnt bother with the hospitality industry or social organizations for obvious reasons).
It is interesting stuff - not nearly the society killer that many would ave you believe; however, still an industry that would require proper planning and evaluation.
FFT -
Peace,
~Charyn