THE EFFECTS OF CASINOS ON LOCAL COMMUNITIES Dayna

THE EFFECTS OF CASINOS ON LOCAL COMMUNITIES Dayna Edwards and Betty Jo Nash LDR 640: Financial Systems Management Siena Heights University, Lansing, Michigan May 15, 2012

Excitement

Criticism “This is terrible!”

Division between Local and State Government

Congressman Mike Rogers “The state’s existing casinos have not been the windfall many expect them to be (Rob South. 2012). ”

Lansing Mayor Virg Bernero “It will create thousands of good jobs, attract tens of thousands of tourists to the region, and generate enough revenue to allow our city to send all of our school district graduates to college (Rob South, 2012). ”

What are the positive & negative effects?

Positive Effects Private Sector Jobs 58%

Generate Revenue for Local and State Government Gun Lake Casino State Government $7. 8 Million Local Government

Wayland School System Reinstate two-way transportation to road events Eliminate their pay-to-play sports participation fee

Casinos

Negative Effects: Jobs Low Paying High Stress

More Negative Increases Traffic Petty Crime

Decline in the Quality of Life Divorce Abuse Neglect Suicide Homelessness

Background Indian Gaming Regulatory Act of 1988 Legalized gambling in 48 of 50 states Based on direct, indirect and induced impacts, the commercial casino industry supported approximately $125 billion in spending and nearly 820, 000 jobs in the U. S. economy in 2010, which is roughly equivalent to 1 percent of the $14. 5 trillion U. S. gross domestic product

Building the industry (1) positive public opinion towards the value of gambling as an entertainment option, (2) governments’ viewing gaming activities as mechanisms that create jobs and generate welcome revenues, and (3) Native American tribes capitalizing on opportunities for economic self sufficiency through gaming

Economic Impacts Wages, jobs, public assistance Tourism & economic development Multiplier factor

Negative effects to community There are three major negative impacts (costs to the local economy) to be estimated: the cannibalization impact; additional public expenditures; and negative externalities Crime Cost of social aspects

Applying the research to Lansing Project economic impact Convention center & tourism Location proximity Trickle down Marketing

References Allabaugh, D. (2010, September 7). Area casinos creating dramatic ripple effects in local economy, problems. The Scranton Times Tribune. Retrieved May 12, 2012, from http: //thetimes-tribune. com/news/area-casinos-creating-dramatic-ripple-effects-in-local-economy-problems 1. 996478 American Casino Guide. Retrieved May 12, 2012 from, http: //www. americancasinoguide. com/casinos-by-state/michigan-casinos. html American Gaming Association (2012 a). Beyond the casino floor: economic impacts of the commercial casino industry. Retrieved May 12, 2012, from http: //www. multivu. com/assets/53019/documents/Full-Report-Beyond-the-Casino-Floor-original. PDF American Gaming Association (2012 b). Commercial casinos remain a driving force in U. S. economy. Retrieved May 12, 2012, from http: //www. multivu. com/mnr/53019 -aga-report-shows-economic-impacts-of-commercial-casino-industry Bangsund, D. , Leistritz, F. L. (1997). Casinos in the upper Midwest: a discussion of the impacts. Agriculture Economics Report No. 378. North Dakota State University. Brennan, Johyn. (2012, March 12). Casinos take from the most vulnerable. Lansing State Journal. Retrieved April 22, 2012, from http: //envoy. lcc. edu: 2880 Dunstan, Roger (1997). Gambling in California. Retrieved May 12, 2012, from http: //www. library. ca. gov/crb/97/03/Chapt 9. html Eadington, W. (1999). The spread of casinos and their role in tourism development. Contemporary Issues in Tourism Development. Ellison, Garret. (2011, November 28). Gun Lake Casino pays out $7. 8 million to state, local governments. Retrieved April 21, 2012, from http: //www. mlive. com/news/grandrapids/index. ssf/2011/11/gun_lake_casino_pays_out_78_mi. html Gazel, R. (1998). The economic impacts of casino gambling at the state and local levels. The ANNALS of the American Academy of Political and Social Science, 1998 556, 66 -84. DOI: 10. 1177/0002716298556001006 Goodman, R. and Feser, E. (1998). Understanding the Economic Impact of Casinos in Missouri. Retrieved May 12, 2012, from http: //casinowatch. org/costs/casinos_mo. html Jackson, Lazarus. (2012, March 21). Despite council vote, casino still poor idea. The State News. Retrieved April 21, 2012, from http: //envoy. lcc. edu Kullgren, Ian. (2011, October 5). Professors debate pros, cons of proposed Lansing casino. The State News. Retrieved April 21, 2012, from http: //envoy. lcc. edu National Gambling Impact Study Commission Final Report. (1999, June 18). Retrieved from http: //govinfo. library. unt. edu/ngisc/reports/fullrpt. html New England Public Policy Center. (2006, September 14). Economic impact of casino development memorandum. Retrieved May 12, 2012, from http: //www. bos. frb. org/economic/neppc/memos/2006/brome 091406. pdf Rephann, T. , Dalton, M. , Stair, A. , Isserman, A. (1997). Casino gambling as an economic development strategy. Tourism Economics, 3, 2: 161183. Smith, Rod. (2003, May 5). Gaming industry uses survey results to tout influence. Las Vegas Review. Retrieved April 22, 2012, from http: //envoy. lcc. edu: 2259 South, Rob. (2012, January 24). Lansing casino could cost Michigan money. Retrieved April 21, 2012, from http: //www. mlive. com/politics/index. ssf/2012/01/report lansing casino could co. html Walker, D. (2009). The economic effects of casino gambling: a perspective from the U. S. Presented at the Macao Polytechnic Institute Global Gaming Management Seminar Series. Wittrock, A. (2012, May 3). Lansing casino approved by Sault Ste Marie Tribe of Chippewa Indians. Retrieved May 12, 2012, from http: //www. mlive. com/lansing-news/index. ssf/2012/05/lansing_casino_approved_reject. html