Gambling Casinos In Communities
Do Gaming Facilities Help Or Harm the Local Economy?
Many communities look to gaming as a means of boosting their economy. Do casinos bring economic growth? What about an increase in social costs?
Muskegon is a small to mid-sized city in Western Michigan. Once a manufacturing town, Muskegon is now making great strides to reinvent itself. Surrounded by several lakes and rivers, one being that of Lake Michigan, Muskegon has positioned itself as both a tourist and environmental research venue.
A few years ago, Muskegon city officials were approached by several casino developers. These developers were interested in building a casino on the Muskegon waterfront. The issue was brought to a public vote, and it appeared that the citizens of Muskegon were desirous of a casino in their community. Nonetheless, no formal proposals were made, and over time the issue quietly went away.
Over the last few months however, a few very serious gaming investors made presentations to Muskegon's City Commission. As a result, the issue has come to the forefront once again. There have been several lively and heated discussions at commission and public forum meetings.
Those in support of the casino believe that it will give a boost to the local economy by:
- Bringing jobs to the community.
- Attracting new businesses to the area.
- Increasing tourism.
Opposers believe a casino will harm the economy and increase social service needs due to:
- Higher crime rates.
- More social ills such as gambling addictions, depression, divorce and suicide.
- Loss of other downtown investors, i.e. higher education centers and environmental research facilities.
These same debates and arguments took place in Detroit and every other city that considered gaming as a source of revenue for their community. But what are the real facts? What can a community expect as a result of a casino moving into the neighborhood?
- No increase in divorce; but some increase in suicides in communities with casinos - The University of Nevada Reno (the Institute for the Study of Gambling and Commercial Gaming) conducted a study to determine if casinos actually increased the rate of divorce and suicide in a community. Per the results of the study, there is no data to support an increase in divorce due to casinos in a community. Nonetheless, the results did show an increase in per capita (per person) suicide when a casino is present in a community. (From Suicide and Divorce as Social Costs of Casino Gambling).
- There is some evidence of economic growth in casino communities - A University of California Riverside study conducted from 1990-2000 showed that "income levels for families living near reservations with Indian casinos rose 55 percent. The median income for families more than 10 miles from a gambling reservation rose 33 percent during the decade." (UC Riverside Study: Indian Casinos Benefit Area Communities).
- Inconclusive evidence to prove that casinos result in an increase in crime - A group of professors compared six non-casino communities to six new casino communities. In this analysis, a few of these communities did see increases in crime, while others did not. A few even had a decrease in certain types of crimes. Consequently, the study concluded that there is not enough evidence to prove that casinos do actually bring about an increase in crime. (Does the Presence of Casinos Increase Crime? An Examination of Casino and Controlled Communities; Crime & Delinquency, Vol. 49 No. 2, April 2003, pg. 253-284.)
- Casinos do give a slight boost to the convention/tourism industry.In a study regarding the impact of casino gaming on Detroit's economy, it was concluded that the casinos have attracted some new tourists and other travel/tourism business to the area. (Tourism Center of Michigan State University)
It appears that there are truths on both sides of this argument. Gaming facilities may bring about some economic growth, while there is also evidence that casinos may increase some social ills. Nonetheless, there is not enough conclusive evidence to prove one way or other that casinos help or harm a community.
