Gambling as a Community Development Quick Fix

Abstract

As small communities throughout the country felt the loss of federal programs and funding, four gold-mining towns in South Dakota and Colorado turned to the legalization of limited-stakes gambling as a means of economic revitalization. All four used the preservation of their historic Old West images to legitimate gaming, but differences in state legislation resulted in different patterns of development. In Deadwood, South Dakota, many small casinos were established, with most gaming tax revenues going toward the town's historic preservation. In Colorado, fewer but much larger casinos emerged, with the returns for historic preservation available to projects across the state, with the gambling communities of Cripple Creek, Central City, and Black Hawk benefiting little. Retail businesses were cannibalized as gambling became the dominant industry in all four towns. Resident populations and schools experienced little change; most of the change occurred in vehicular traffic, law enforcement, and the utilization of infrastructure.

Public health effects of gambling – debate on a conceptual model

“…Who finances these new gambling venues is important whether these investments can be viewed as cost or benefits; when financed partly or wholly by governments rather than by private developers, investment is construed as more of a “cost,” although the wealth of the local community increases [32]. The costs of public transportation and the required police and fire protection are borne by governments, and the maintenance of roads, electricity, and water supply are usually a government responsibility too [155, 156].…”

Does Gambling Harm or Benefit Other Industries? A Systematic Review

“…Three studies reported no impact (Siegel & Anders, 1999; South Australian Centre for Economic Studies, 2008;Williams, Belanger, & Arthur, 2011). Twelve studies observed that gambling financially harmed retail or merchandise sectors (Ackerman, 1997;Anders, 2002;Anders et al, 1998;Blevins & Jensen, 1998;Byron & Quiggin, 1996;Garrett, 2004;Grinols & Omorov, 1996;Hicks, 2003;Leven & Phares, 1997;National Institute of Economic and Industry Research, 2000;Snyder, 1999;Taylor et al, 2000). The studies showed that the introduction of gambling seems to have decreased average spending on retail purchases, as well as tax income from the retail sector.…”

“…Most of the negative observations were related to convenience-type gambling or measured impacts on local consumption (Ackerman, 1997, Anders, 2002, Byron & Quiggin, 1996Garrett, 2004;Grinols & Omorov, 1996;National Institute of Economic and Industry Research, 2000). Some observations also suggested that destination gambling may harm the retail and merchandise industries (Blevins & Jensen, 1998;Snyder, 1999;Taylor et al, 2000).…”

Gambling by Ontario casino employees: gambling behaviours, problem gambling and impacts of the employment

“…In Colorado, for instance, a Senator in the eventually successful campaign to legalize gambling wrote in a newspaper column, -The primary purpose of the resolution…is not to promote gambling…It is hoped that tourists will come to these towns year-round, not only to engage in limited gambling, but to stay in hotels, eat in restaurants, and shop in the stores‖ (Stokowski, 1996, p. 61). Similarly, stimulating the economy with tourism was a primary objective behind the establishment of casinos in places ranging from Deadwood, South Dakota (Blevins & Jensen, 1998;Nickerson, 1995) to Darwin, Australia (Hall & Hamon, 1996). Thirdly, the lure of additional employment opportunities has been an important factor in many governments' acceptance of gambling (Eadington; Morse & Goss).…”

“…Such incongruity is actually quite logical because overall job growth will depend on numerous factors, including casino location, as urban casinos naturally should receive more displacement spending than more isolated casinos (Eadington, 1998). Aside from displacement, casino employment also has received criticism for involving primarily menial jobs (Henriksson & Lipsey, 1999), submitting employees to abuse from gamblers, causing hearing loss, (Hutchinson, 1999), offering poor shifts, and providing too much seasonal work (Blevins & Jensen, 1998). Moreover, various studies have found that PG may be particularly prevalent among casino employees (e.g., Dangerfield, 2004;Duquette, 1999;Shaffer et al, 1999).…”