FACTS

Wondering if casinos bring crime to communities?

• 2003 - 80 acres of open dune and forested land in Florence, Oregon (population 7,500):
  
  • Total arrests: NONE
    
  • Medical assists: NONE
    
  • Drug incidents: NONE
    
  • Motor vehicle collisions: NONE
    
    
• 2005 - new tent casino on same property reported:
  
• Total arrests: 63
  ("majority being drug related and occurring at the casino in Florence")
  
• Medical assists: 67
  
• Drug incidents: 52
  
• Motor vehicle collisions: 21
  • (Source: Casino tribe newsletter 2006)
    

Still wondering?

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Florence, Oregon - Overall crime rate is down, but property crimes increase. (Officer) Siewell said one change for 2008 will be a rise in the local transient population. Last year there was an upswing in the number of transients in Florence. It’s very unusual for Florence. This is a trend that’s going to continue,” said Siewell. In 2007, there were four arrests for arson, two arrests for aggravated assault, no homicides, one rape, four robberies, 260 thefts and 28 vehicle thefts for a 2007 population of 8,270. In 2007, there were 172 arrests for criminal mischief, 216 arrests for disorderly conduct, 86 for possession of drugs, 11 family offenses, 37 forgery arrests, 59 fraud incidents, no kidnappings, 33 liquor violations and 101 other types of assualts. There were 15 sex offenses, six cases involving illegal weapons and 115 DUIIs. (5/16/08, Siuslaw News, Police Report)

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In 2005 a Florence, Oregon resident asked the Oregon State Police,
Lane County Sheriff, and City of Florence Police,
some questions about people dressed, and acting, like police
both on and off casino property in Florence.
Here are the answers. Oregon casino police - Answers

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What happens if you violate a tribal law in a casino in Florence, Oregon?

"Any person who violates the provisions of this Code is deemed to have consented to the jurisdiction of the Tribal Court and may be subject to a civil penalty in Tribal Court for a civil infraction.
Such civil penalty shall not exceed the sum of one thousand dollars ($1,000) for each such infraction, provided, however, that the penalty shall not exceed five thousand dollars ($5,000) if it involves minors."
(February 2006)

Note: When the Florence casino property was "restored", the tribal government which owns this casino was specifically denied criminal or civil jurisdiction, or hunting, fishing or trapping rights on reservation lands.
(25 U.S.Code 714a and 25 U.S. Code 714e)

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(Marilyn Kittelman, Douglas County Commissioner re: Cow Creek casino tribe) "I believe in the right of the tribe to self-governance of their own people on their own land," Kittelman wrote. "What I don't support is the balkanization of Douglas County into pockets of land where law enforcement cannot go without permission from the tribe, where U.S. citizens have no rights or protection under the laws of the United States." ( 8/22/07, "Cow Creek Revenge")

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National

• CA - Last year (2007) , incidents included counterfeit chips, child endangerment, numerous auto burglaries, drug busts ("possession of drugs; possession of drugs for sale; under the influence of a controlled substance"), drunks, liars ("providing false information to a police officer"), a stolen vehicle, brandishing a deadly weapon, forgery, battery, domestic battery, petty theft, grand theft, insufficient funds, fictitious checks, a minor in possession of alcohol, trespassing, threats, embezzlement, annoying phone calls, arrests on outstanding warrants, resisting arrest, vandalism, sexual battery, even illegal dumping. (Casino Crime Stats - One California Community, 4/8/08)
  
  
• FL - The statistics are sobering. In communities that permit Class III casino gambling, such as Las Vegas-style slot machines, blackjack card games and even roulette or craps, the crime rate is nearly twice the national average. Additionally, statistics show that illegal gambling is significantly more prevalent in states that have opened the door to legalized gambling. A recent study found more than two-thirds of compulsive gamblers had engaged in criminal activity, including violent crimes, because of a gambling problem. Bill McCollum, Florida Attorney General (Florida Attorney General: Statistics show crime rate rises with casinos, 10/4/07)
  
  
• ME - Recently released data on crime in Maine show a jump in Bangor’s crime rate of more than 20% in the first full year of the operation of Hollywood Slots, disputing claims by casino proponents that crime would actually decline. ... the double-digit increase in Bangor’s crime rate is certainly troubling, and it refutes suggestions by some casino supporters who claim that casinos actually reduce crime through jobs and economic development. (City crime rate increases 22% after casino, 10/4/07)
  
  
• PA - A new report paints a potentially troubling picture of life in Philadelphia after two casinos open up for business. The report says crime could increase and the casinos could end up costing more money than they bring in. (7/26/07, New study paints grim outlook for casino towns) (Report: 2007-Five-Year Plan Staff Report)
  
  
• CT - Over the last six years , calls to the Ledyard Police Department, a short drive from the Foxwoods Resort Casino, have almost tripled , according to local authorities. And in Montville, where Mohegan Sun is located, calls to police are up 38% overall since 1997. Arrests for drunken driving have risen in both towns -- up from 38 to 87 in Ledyard since 1991 and from 39 to 113 in Montville since 1997. But the big reason for the increase in police calls, according to both departments, is not casino- related vices, but the sheer volume of people passing through these towns every day, creating more opportunities for problems just by being there. Traffic is up as much as 275% near the casinos -- a source of frustration for many residents.

  Norwich police have confronted many of the same issues as the casino towns down the road. Even with the population stagnant since 1990, police work has increased, according to statistics. Motor vehicle violations are up roughly 165% since 1992. Car accidents have risen 57%. Drunken driving arrests are up 17 percent. And, just like in Ledyard and Montville, calls for police service reporting anything from noise to theft have increased as well, up from an estimated 30,642 in 1992 to 53,974 in 2004 -- a 76 percent leap. (7/22/07 - Towns feel effect of casinos)
  

• Studies suggest that, four years to six years after casinos open, surrounding communities experience increases in rape, murder and other violent crimes, as well as property crimes such as burglary and auto theft. In California, the estimated annual societal cost of problem and pathological gamblers is just under $1 billion ($998.1 million). That figure includes costs associated with welfare benefits, arrest and incarceration, bankruptcy, and physical and mental health treatment. (6/2/06 - Casino Report released by California Attorney General)
  
  
• By the fifth year of casino operation, robberies were up 136%; aggravated assaults, 91%; auto theft, 78%; burglary, 50%; larceny, 38%; and rape, 21 %.
  Controlling for other factors, 8.6% of property crimes and 12.6 % of violent crimes were attributed to casinos. (Casinos and Crime, 5/11/06)
  
  
• Casino Gamblers Warned - Sheriff Can't Guarantee Safety - ... gamblers headed to the Red Wind Casino might want to think twice about having to deal with the current tribal justice system. For instance, if a member is convicted of dealing drugs, rape or murder, the maximum they'll serve is one year in jail. "We've had serious cases; child molestation, child rape, those type of things, where the tribe has chosen to impose their rules on the defendant and basically give him a slap on the hand. Had they notified us and we could have done the investigation, those people would be held accountable." (5/4/06 - Casino Gamblers Warned)
  
  
• (Police) Departmental statistics shared with the (Blue Lake, Calif.) council and the public show sizable increases between crime data collected in 2002 -- the year Blue Lake Casino opened its doors -- and 2005. Particular spikes are revealed in burglaries, 4 in 2002 and 32 in 2005; marijuana sales, 4 in 2002 and 13 in 2005; driving under the influence, 2 in 2002 and 23 in 2005; and drunkenness, 3 in 2002, 12 in 2005. The end result is arrests and bookings that went from nine in 2002 to 372 in 2005. (Crooks challenge police, 5/1/06)
  
  
• "They're taking money from their kids' college funds. I've seen cases of parents breaking into their kids' piggy banks so they can gamble." Renee Wert, gambling addiction counselor - - "Over the past five or six years, I've seen a dramatic increase in embezzlement-type crime, and gambling has played a role." Frank Clark, Erie County district attorney (Hidden costs of gambling, 4/17/06)
  
  
• How casino tribe jumped into bed with the mob: The gambling money flowed so freely that one or more members of an organized crime family showed up one day with $300,000 in a duffel bag to spend on races, according to a Treasury Department document. After the FBI's initial reluctance to investigate, the scheme eventually resulted in an 88-count indictment and 17 defendants in a New York federal court. They are accused in a $200 million illegal gambling and money laundering ring. Allegations include extortion and race fixing through horse doping. Most have pleaded guilty or are scheduled to do so this week. March 24, the U.S. Treasury Department announced the tribe had agreed to pay a $1 million fine ... said Anthony Street told him he negotiated the fine down from $65 million.(4/2/06 - Oklahoma: Inquiry uncovers casino scheme)
  
  
• Casinos are cash-intensive businesses that can be used to launder funds. Casinos have been subject to anti-money laundering regulations longer than any industry other than banking. But the money laundering threat posed by casinos has grown with the rapid increase in tribal gaming. Last month, the Financial Crimes Enforcement Network (FinCEN) announced its first enforcement action under the casino provisions of the Bank Secrecy Act (BSA) against an individual and an Indian tribe for a broad range of BSA violations. (Testimony of Stuart Levey, Under Secretary, Office of Terrorism and Financial Intelligence, U.S. Department of the Treasury, Before the Senate Committee on Banking, Housing, and Urban Affairs 4/4/06)
  
  
• The house never loses and Maryland cannot win: Why casino gaming is a bad idea. Report on the impact of casino gaming on crime presented to the joint executive-legislative task force to study commercial gaming actities in Maryland, July 14, 2005:
  • In the last year, crime on the Mississippi Gulf Coast has increased in every category, with murder, rape, robbery and car theft at least doubling. Juvenile violent crime has shot up 65% in the last two years, alcohol-related accidents increased 101% in the first half of 1994, and police describe a staggering increase in fraud and embezzlement.
  • In the first fifteen years Atlantic City had casinos, violent crime rose by 199%, and larceny skyrocketed 481%.
    
  • In Black Hawk, Colorado, calls for service went from about 25 a year before gaming, to between 15,000 and 20,000 today.
    
  • In Deadwood, South Dakota, arrests have increased 262% since the advent of casinos.
    
  • In a hearing before Congress on September 29th of this year, a former Chicago mobster revealed how Chicago organized crime "welcomed" the introduction of legalized gaming into Illinois; it "created a brand new market for us."
    
  • In Biloxi, Mississippi, two former President Casino employees were indicted last year on federal racketeering charges in connection with an organized crime scheme that allegedly bilked the casino out of more than $500,000.
    
  • In New Orleans, 13 people pled guilty this year to charges that they used a video poker company to skim profits into the coffers of the Marcello, Genovese, and Gambino mob families of Louisiana and New York.
    
    

• Crime in Thunder Valley Casino's hometown of Lincoln, California, rose in almost every single category between 2003 and 2005. Calls for service climbed steadily from 15, 588 in 2003 to 26,202 in 2005. Stolen property dollar amounts jumped from $429,900 in 2003 to $1,413,158 in 2005. (2005 Annual Report, City of Lincoln, California)

• It is virtually inescapable that there will be an impact on crime from introducing gambling”, says Richard Aborn, of the firm of Constantine & Aborn Advisory Services in New York City "The story is unfortunately the same, over and over again, which is, when gambling is permitted, we do see increases in crime.” The increase, the study finds, is tied specifically to gambling and not to increased tourism in general. Aborn says they found a tendency among pathological gamblers to spend up to a year exhausting personal resources before turning to crime to finance their addiction. Another corollary, noted by Aborn … political corruption. He says there are many documented cases of politicians, including high-level lawmakers in other states, taking bribes. (May 19, 2005, Commissioned study concludes casinos bring crime)

• The $18 billion-a-year Indian casino industry has been left open to corruption and exploitation by non-Indians because regulators are hobbled by poor funding and vague rules. "When there's this much money involved, bad guys will come," Interior Department Inspector General Earl Devaney told the Senate Indian Affairs Committee on Wednesday. (Indian gambling oversight scrutinized, 4/28/05, Denver Post)

• Is there a connection between problem gambling and crime? Do compulsive or pathological gamblers resort to criminal activity to pay their debts and finance their bets? Using the Arrestee Drug Abuse Monitoring (ADAM) Program as a survey vehicle, researchers found significantly more problem gambling among arrestees than in the general population. The arrestees who were interviewed had high levels of criminal activity related to pathological gambling. The percentage of problem or pathological gamblers among the arrestees was three to five times higher than in the general population. Nearly one-third of arrestees identified as pathological gamblers admitted having committed robbery in the previous year. Approximately 13 percent had assaulted someone for money. Pathological gamblers were much more likely to have sold drugs than other arrestees. (U.S. Deptartment of Justice, 2004. Gambling and Crime among Arrestees: Exploring the Link ; Pathological Gambling in Arrestee Populations, Richard C. McCorkle, Ph.D., 2002)

• All Gambling All the Time- Turning the Empire State into the Gambling State: "This report has revealed the dark side of gambling: the "silent" addiction of problem gambling; political corruption; crime; suicide; and hidden economic costs. This is the side that the gambling interests don't want anyone to see. Theirs is the lie that soft-pedals gambling as "gaming"; it is the false promise of economic salvation; and it is the glib dismissal of people who are suffering as a direct consequence of state action." ( A Legislative Report by Senator Frank Padavan, April, 2004)

• Research suggests that on a national basis casino gambling generates externality costs in the range of $40 billion annually,  and crime is one of the biggest components of these social costs. (Casinos, Crime and Community Costs, Earl L. Grinols, David B. Mustard, Revised: September 2004.)
  
  
• The tribes' secrecy about financial affairs - and the complicity of government oversight agencies - has guaranteed that abuses in Indian country growing out of the surge in gaming riches go undetected, unreported and unprosecuted. Tribal leaders sometimes rule with an iron fist. Dissent is crushed. Cronyism flourishes. Those who question how much the casinos really make, where the money goes or even tribal operations in general may be banished. Indians who challenge the system are often intimidated, harassed and threatened with reprisals or physical harm. They risk the loss of their jobs, homes and income. (Time Magazine, Special Investigation by Donald L. Barlett and James B. Steele, December 16, 2002)
  
  
• It's quite a phenomena that we have had three highly regarded town officials, some elected, some appointed, who have stolen such large quantities of money. It goes to show how gambling has permeated this area. “There's been a lot of gambling-related crime. This area has the highest amount of second and third mortgages in the state. You see people liquidating their assets, putting their homes at risk, not paying taxes. (Down and Out: Donna Allen Went To Jail Because Of Her Gambling Addiction. Could It Happen To You? 1/31/05,
  Connecticut)
  
  
• Casino management turns a blind eye to drug dealing -- There are drug dealers who often have a lot of money, so the management can't afford to offend them. It's well known that they're selling drugs in the toilets, but the management turns a blind eye to it. ( A lose-lose situation, 10/27/04)
  
  
• Casino Cash: Terrorist Temptation? Federal sleuths are taking a closer look at the mushrooming Indian casino industry, where the rivers of cash flowing through slot machines and across gaming tables could be a tempting target for international terrorists. . . . Casinos aren't "concerned about the source of the money," Thompson said. "If we are not watching, it becomes a venue for laundering of terrorist and drug money." (William Thompson, University of Nevada, Las Vegas) (9/10/04, Hartford Courant)
  
  
• "... Then, comes the dramatic increase in crime everything from theft and drugs to murder. So there is the need for increase in local and state law enforcement personnel and resources." "There has not been a day yet that the Connecticut State Police have not arrest someone at Foxwoods casino or Mohegan Sun Casino. In 1997, the State Police Casino Operations Unit investigated over 800 casino-related crimes. In 1999, the Casino Operations Unit investigated over 1,000 incidents. The crimes investigated include but are not limited to rape, murder, larceny, and grand theft auto. In 1996 there were 500+ larcenies at Foxwoods. The next year, 1997 when the Mohegan Sun Casino opened its doors they had 250+ larceny investigations and Foxwoods had 530+. In 1998, Foxwoods 730+ and Mohegan Sun 300+." (Casino Impact on the Town of North Stonington, CT)
  
  
• Crime rates are approximately 8% higher in counties with casinos at least four years old. (Scientific American Magazine, Oct. 3, 2001)
  
  
• 99% of compulsive gamblers commit crimes (bad checks, forgery, fraud, embezzlement from job, theft, bank robbery, selling drugs, street crime, prostitution, etc. ) (Valerie C. Lorenz, Ph.D.., CCMHC, CPC Executive Director, Compulsive Gambling Center, Inc.)
  
  
• Gambling in counties with Class III gambling (casinos) are responsible for:
  7.9 % of total crime (FBI Index I)
  7.7 % of property crime
  10.3 % of violent crime
  For an average county with 100,000 population this implies 772 more larcenies, 357 more burglaries, 331 more auto thefts, 12 more rapes, 68 more robberies, and 112 more aggravated assaults. (U. Illinois-U. Georgia, Grinols-Mustard Study, 4/30/03 Testimony before Senate and House Finance Committees)
  
  
• Congress created the National Indian Gaming Commission (NIGC) to be the Federal Government's principal oversight and enforcement agency for Indian gaming - and then guaranteed that it could do neither. With a budget capped at $8 million, the agency has 63 employees to monitor the $12.7 million all-cash business in more than 300 casinos and small gaming establishments nationwide. The New Jersey Casino Control Commission, by contrast, has a $59 million budget and a staff of 720 to monitor 12 casinos in Atlantic City that produce one-third the revenue. The NIGC has yet to discover a single major case of corruption - despite numerous complaints from tribe members. Special Report - Indian Casinos, Time Magazine, 2003
  
  
• Casinos on Indian reservations: By 1996 compact-counties have significantly higher crime rates than non-compact counties. (U. Illinois-U. Georgia, Grinols-Mustard Study, 4/30/03 Testimony before Senate and House Finance Committee) 
  
  
• Crime rates in casino communities are 84% higher than the national average.
  (U.S. News and World Report Jan. 15, 1996, pp. 58, 60)
  
  
• Total "Behavior Crimes" defined in the report as "crimes against society" including such crimes as "... drunk driving, drug offenses, and extortion ..." increased 13% during the 4-year study period in Oregon casino counties compared to 5% in much heavier populated non-casino counties. Various behavior crimes which increased after a casino was introduced in the counties: Weapons Violations (2.9%), Prostitution (276%), Drug offenses (7%), Liquor Law violations (16%), Crimes Against Families (17.6%), Curfew violations (30%), Runaway Juveniles (17%) and All Other (19%). The report admits that their analysis "shows that the introduction of casinos is significantly related to higher than expected rates of behavioral crimes." (EcoNW Report, October 1998, "Answers to Client Questions and A Report to the Confederated Tribes of the Warm Springs Indian Reservation")
  
  
• The percentage of gambling clients who committed prosecutable crimes (embezzlement, theft, etc.) is estimated at 38% and may be higher. A majority of gambling clients begin to steal monies out of their household budgets, write bad checks, commit forgery, steal from their employers (e.g. take checks written to retail stores where they are employed and commit forgery), obtain credit cards and max out the amount, and so on. (Michael Bean, Director, Addiction Counseling and Education Services, Inc., letter to Lane County Health and Human Services re: potential impact of casino development in Springfield, Oregon, 12/12/95)
  
  
• Milwaukee County District Attorney E. Michael McCann, a longtime opponent of casino-style gaming in Wisconsin, is convinced that some of the people his office prosecuted for gambling-related crimes would not have become criminals if the state didn't have casinos. "I think the proximity of casinos introduces people to it," McCann said. "Persons who might never have gone to Las Vegas or Reno suddenly have one nearby and encounter a problem. (Gamblers accused of theft on job increasing, 11/28/03 Milwaukie Journal Sentinal)
  
  
• As access to money becomes more limited, gamblers often resort to crime in order to pay debts, appease bookies, maintain appearances, and garner more money to gamble.” (National Gambling Impact Study Commission, Final Report, June
  
  

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• Link to: REAL EXAMPLES OF CRIME / CASINO CONNECTION

• Casinos, Gambling and Prostitution 2005
  Casino Watch

• Gambling and Crime among Arrestees: Exploring the Link
  U.S. Department of Justice, 2004

• Pathological Gambling in Arrestee Populations
  Richard C. McCorkle, Ph.D., 2002