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... to support the riverboat gambling industry, (Eckert, 1991). He also believes after all 10 boats authorized under the law are operating Illinois will receive $ 40 million in additional revenues, (Eckert, 1991). This is bound to please Illinois' taxpayers. Yet with all its promises it would seem governments are promoting gambling in order to pay a insignificant portion of the bills.
Iowa expects to generate $ 10. 8 million from all her riverboat casinos this year. But that is a rather small share of the states $ 3. 2 billion budget (Greenberg, 1991). The promise that poor river towns will experience a flock of new businesses and life into their economies has some unanswered questions. Some are wondering what type of businesses this new gambling will attract. And if gambling will stimulate crime along with the economy. Atlantic City, New Jersey is a poor example for legislature when promoting state sponsored casinos.
New Jersey voters approved casinos in Atlantic City in 1976, but the increased gambling revenues have not brought the prosperity they had hoped. Atlantic City's poor reputation is due in part to its run-down business district. Many residents are still unemployed since many casino jobs went to those outside city limits, (Greenberg, 1992). The city's residents have continued to move out because of the high cost of living and their crime rate is the highest in the state. Businesses unrelated to the gambling industry did not feel the surge of investments promoters had promised. Many of these businesses closed, leaving the city with mostly gambling related industries, (Lesieur, 1992).
Deadwood, South Dakota has also experienced its share of problems. They have had an increase in petty thefts since casinos opened for business. They have had an influx of new development, but businesses like the five and dime, grocery stores, car dealerships and the local pharmacy have closed, (Hansen, Seacord, 1991). These towns with casino gambling no longer have a diversified economy. Their economies are highly dependent on the gambling industries. Some opponents of riverboat gambling have contended that states have produced compulsive gamblers through their enticing advertisements.
Whether state sponsored gambling increases the number of compulsive gamblers is really unknown. It does not send a strong message to children and all members of society about the value of hard work to achieve your dreams. More importantly, few states are taking any responsibility to help those gamblers that have over indulged. Few states dole out any of their profits from gambling for treatment centers and education campaigns. Iowa has set aside. 5 percent of lottery and riverboat gambling proceeds to help compulsive gamblers, (Greenberg, 1992).
According to Missouri statute an "undisclosed" amount of profits may go to treatment centers to help addicts. If states are in the business of operating gambling then states have an obligation to provide enough profits for adequate treatment of gamblers who have risked too much. Iowa legislatures have put in some safeguards against attracting heavy gamblers on their riverboats. They have issued a limit of $ 200 on losses per excursion and a $ 5 limit on bets, (Eckert, 1991). Illinois has not issued limits for gamblers, along with Mississippi and Louisiana. Missouri statutes do not include any limitations on wagers or losses and many other states are expected to initiate similar legislation.
The "no limitations" legislation is supposed to make these states more competitive. Riverboat gambling is spreading just like the lotteries did during the 1980 s. The idea of competition from other states that have riverboat gambling has urged more conservative states to consider the policy. If neighboring states are conducting riverboat gambling they may see their residents crossing state lines to get a piece of the action. Those states with legalized gambling are reaping the benefits while the state without this attraction loses revenues. This has had a domino effect on states all across the nation.
Iowa, the first to implement riverboat gambling, now has four profitable riverboats running throughout the state. Their good fortune may soon come to an end with stiff competition from the seven new riverboats in Illinois. Illinois statutes allow as many as 10 riverboats and does not restrict its passengers betting limits. Iowa holds some cards to combat neighboring competition. One of their boats, the President, is able to carry as many as 2, 500 gamblers. Presently, state regulation allows 1, 600 gamblers per excursion.
This could easily be changed by upping the amount of casino space to 50 percent rather than the current 30 percent, (Guskind, 1991). Soon Missouri will find herself in the middle of the action. State officials were hopeful by late September to have riverboat casinos just outside the Gateway Arch in the St. Louis area, but the massive floods may slow things down a bit. Nevertheless, with 20 boats authorized, riverboat gambling is on its way in Missouri. Then the battle for the most painless revenues will commence for Illinois and Missouri.
Legislators all across the Midwest may find themselves under a great deal of pressure to lift regulations in order to remain competitive. Iowa legislators have already experienced this with their racetracks. As legalized gambling at Iowa racetracks began to taper off, the legislature was pressured to cut taxes on them. The tracks are also receiving tax rebates and loan guarantees, (Guskind, 1991). The more states legalize gambling they run the risk of spreading the market for gambling too thin, (Greenberg, 1991). Atlantic City is used as an example of a saturated gambling market.
The 13 th casino to open in Atlantic City soon closed its doors and four others followed suit, (Gelbtuch, 1991). Riverboat gambling is hoping to attract tourists, but as more and more states legalize this type of gambling, they will bring in mostly local residents. Iowans are hoping to revitalize needy communities in Davenport, Bettendorf and Dubuque. Downtown Davenport was promised $ 60 million in gambling related development by riverboat owner, John Connelly, (Guskind, 1991). It looks as if they will only receive about $ 25 million for development and much of that will be a floating restaurant and loading facility, (Guskind, 1991). Now Davenport residents are facing a very costly decision of choosing riverboat gambling rather than a flood wall.
A flood wall could have saved their city from some of Mother Natures flood damage, but would not have generated the revenues or development of riverboat gambling. Suggestions for Implementation of Riverboat Gambling Policy-makers must be aware of the dangers riverboat gambling poses. In order to make it work, policy-makers will have to minimize the adverse social consequences that may result. First of all, restrictions should be placed on advertising riverboat casinos.
The odds should be clearly stated and should not target poor economic classes. Secondly, states should give enough proceeds to adequately fund treatment of excessive gambling and educational campaigns about the possible pitfalls of gambling. Thirdly, legislators need to be keenly aware of the variability of gambling revenues and the effect this could have on other tax sources. When evaluating implementation of a policy one must assess what was actually implemented, and whether that complies with the original intent of policymakers, (Dale, 1992). The implementation of riverboat gambling in Missouri is likely to bring some revenues, but it will also have some unintended effects. Policy-makers should continue to ask themselves if this policy has achieved its goals, and if it is successful.
Success can be monitored by such indicators as; static crime rates, the growth of diversified businesses (especially in riverfront areas), the public's perception - is there continued support from constituency groups, increase in tourism and amounts of revenue generated. The spread of state sponsored gambling is not stopping with riverboat gambling. With modern technology states may be able to pick the pockets of the willing electronically. Some states with lagging lotteries are looking at games enabling players with a television and touch tone phone to play lottery from their Ladyboys, (Karcher, 1992). Missouri has a bill, sponsored by Representative Jacobs, to implement video lottery terminals or VLT's, similar to slot machines, in the state. As Kenny Rogers would say, "its time to fold 'um and walk away. " Gambling by riverboat casinos are not painless taxes, nor or they dependable revenue sources.
They are quick fixes to our problems. It's time for policy-makers, bureaucrats and citizens alike to find solutions that will work for the long haul. Bibliography: Bibliography Berkshire, Tom J. , "National Lotteries: A Housing Shortage Solution?" , in Journal of Housing, (September/October 1989). Paul M. Mason, The Economic Consequences of State Lotteries, New York, NY, 1991. Case, Henry C. , John C.
Dill, "The Real Truth About Indian Gaming and the States", in State Legislatures, (March, 1992). Gelbtuch, Howard C. , "The Casino Industry", in The Appraisal Journal, (April 1991). Greenberg, Pam, "Not Quite the Pot of Gold", in State Legislatures, (December 1992). Guskind, Robert, "Casino Round the Bend", in National Journal, (September 14, 1991). Hansen, Karen, Megan Seacord, "A 20 th Century Gold Rush", in State Legislatures, (March 1991). Hugick, Larry, "Gambling on the Rise; Lotteries Lead the Way", in Gallup Report, (July 1989).
Karcher, Alan J. , "State Lotteries", in Society, (May/June 1992). Karcher, Alan J. , Lotteries, New Brunswick, NJ: 1989. Lesieur, Henry R. , "Compulsive Gambling", in Society, (May/June 1992). Stocker, Frederick D. , "State Sponsored Gambling as a Source of Public Revenue", in Society, 1972, pp. 437 - 441. Weiss, Ann E. , Lotteries: Who Wins, Who Loses? , Enslow Publishers, Inc. , Hillside, NJ: 1991.
Williams, Francis Emmett, Lotteries, Laws and Morals, Vantage Press, NY: 1958. Wilson, Thomas, "Gambling: A Punt on the River", in The Economist, (March 13, 1993), pp. 37. Footnotes
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