| People Against a Casino
Town
|
| News
of Interest |
|
California Attorney General Report -
Negative effects of urban casinos Report Released by Attorney General Documents Negative Effects of Urban Indian Gaming Wednesday, May 31, 2006 SACRAMENTO, Calif.--(BUSINESS WIRE)--May 31, 2006--A report released today by Attorney General Bill Lockyer provides a detailed account of the negative impacts that result from gaming in California, particularly in urban environments. Gambling in the Golden State: 1998 Forward examined both economic and social costs that urban Indian gaming places on California communities. "This report confirms our greatest fears about urban casinos," said Andres Soto, coalition member of Communities United to Stop Urban Casinos, a grassroots organization comprised of citizens concerned about the expansion of urban casinos in their local communities. "A casino that opens in the middle of our neighborhoods burdens the local community with multiple problems ranging from increases in crime to major traffic congestion. In addition, they cause a drain on the local economy by wiping out many small businesses." The report, compiled by the California Research Bureau, can be viewed at www.library.ca.gov/HTML/statseg2a.cfm. Some key findings: * The cost-benefit calculus for an urban casino is different from that of rural casinos. Negative economic impacts can result when gaming operations alter established retail spending or employment patterns, create more problem gambling, and increase costs for traffic, law enforcement and infrastructure. In part this is because more of the gamblers are local residents so the money they spend on gambling displaces other local expenditures. Gambling in rural areas tends to draw residents from other regions, bringing money into the local economy. * An analysis prepared for opponents of a proposed 5,000 slot machine Indian casino in the city of San Pablo concluded that the casino would result in a regional economic loss of $138 million a year, not taking into consideration social, public health, or safety costs. Money lost to the local economy, which would otherwise have been spent on local goods and services, was estimated to have a multiplier effect on the regional economy resulting in 7,219 jobs lost (compared to an estimated 2,000 employed at the casino). * From 2001-2004, tribal casinos earned roughly $17 billion in gross revenues. From 2000 through September 2005, the gaming tribes paid less than one percent of that total, or $156.4 million, into two state revenue-sharing funds. * The tribes' casino and retail operations provide economic and employment benefits to the surrounding communities in rural areas, where most casinos are located...The economic effect in urban areas is much different and potentially negative due to displacement of existing retail operations. * 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. More than 75 percent of the calls seeking help from the California Council on Problem Gambling come from gamblers who prefer casinos. "When voters passed Prop 1A and Prop 5 the intent was not to put casinos in our neighborhoods," added Soto. "Our coalition applauds the efforts of elected officials, such as Senator Dianne Feinstein (D-California) and Senator John McCain (R-Arizona), that are working to fix the loopholes currently found in the Indian Gaming Regulatory Act. It is imperative that we take action now to protect our communities." Communities United to Stop Urban Casinos is working to shed light on the estimated 40 casino projects being proposed in California. For more information visit www.stopurbancasinos.org. Communities United to Stop Urban Casinos is comprised of community leaders, small business owners, clergy members, and other residents concerned about the expansion of urban casinos in their local communities. http://biz.yahoo.com/bw/060531/20060531006136.html?.v=1 |
|
Related Links: |
| PACT SEARCH FACTS LAWSUIT LINKS NEWS RESEARCH ACTION |