Expansion of Gambling: Can It Help Kentucky
...Vegas, Nevada and Atlantic City, New Jersey. While these two cities have been very prosperous because of their casinos, both these cities, especially Atlantic City, have been tagged with the labels of Sin City, where crime rates are sky high, and organized crime runs rampant. While this stereotype isn’t entirely true, very few cities have legalized land based casinos since Atlantic City did in the late 1980s. Why should gambling be expanded in our state? Well the biggest reason has to be the increased tax revenues that come from gambling. States can charge whatever tax rate they want on casino revenues, since there are no federal guide lines on taxing casinos. This extra money could not only go towards alleviating the state’s budget crisis, but could also lessen the blow from the new federal budget proposal. This could be the possible long-term solution for the state’s budget problems. Kentucky needs new ways to bring in extra revenue. Unemployment rates continue to rise, which lowers tax revenues, which causes the state to have to cut funding from important programs. With the expansion of legalized gambling, this would bring in jobs to the state, which would bring in new tax revenue from these people, plus the tax revenue from the individual casinos. With this new money, extra funding could go into the state’s education system, which badly needs the money following the state’s budget cuts. Kentucky’s education system is ranked 37th in the nation according to a survey by Morgan Quitno Press. While not horrible, it could still be better. With a better education system, Kentucky’s youth would be better prepared for life after high school. Another reason why casino gambling needs to be legalized in the state is because of neighboring states legalized gambling laws. “Seven gambling riverboats operate in Indiana at this time. Two more are scheduled to open in the near future” (Barker 196). Missouri has 15 dockside riverboat casinos. “Illinois, the second state to legalize riverboat gambling, has issued 10 licenses for riverboats. Each licensee is allowed two boats” (Barker 196). “The four parimutuel facilities in West Virginia have Video Lottery Tellers that play slots, blackjack, and poker” (Barker 196). With these neighboring states stances on the expansion of legalized gambling, Kentuckians have several choices to fill their gambling itch. The problem is that Kentucky money is going to the state coffers of Indiana, Illinois, Missouri, and West Virginia. If casinos, riverboats, and/or video lottery tellers were installed throughout the state, Kentuckians would stay in the state to fulfill their gambling needs. Kentucky money would stay in the state, and the state could then tax that money. Because people are going out of state to gamble, this is also hurting the horse racing industry and to a smaller affect, the Kentucky Lottery, both major contributors to the state’s education system. Speaking of the horse racing industry, it would greatly benefit from the expansion of legalized gambling, despite what some people think. If video lottery tellers were installed at horse tracks such as Keenland and Churchill Downs, attendance at these tracks would go up, as there would be an alternative form of gambling besides betting on horse races. This was done in 1990 at West Virginia’s four horse and greyhound tracks after sagging attendance threatened their existence. Needless to say, the installation of the video lottery tellers effectively saved the racing industry in West Virginia. Also, if Kentucky went all the way and legalized casino gambling in the state, the Kentucky Lottery and the horse racing industry could be tied in with the casinos to keep interest in both of them. Individual casinos could offer games sponsored by the Kentucky Lottery as well as tying in the ability to bet on races at Keenland and Churchill Downs. This would further help the state to raise money for the state government and keep the Kentucky Lottery and the horse racing industry from taking a back seat to casino gambling. Gambling has all these benefits, but that doesn’t mean that gambling has no pitfalls. It is constantly under fire from numerous social and religious groups and most use the same arguments. While the gaming industry extols the merits of casino construction, anti-gambling activists argue that the introduction of such an industry is tantamount to giving Satan a key to the city. They argue that due to the nature of this product less industry, community mainstays and traditional morality are destined for disaster. They argue that the social costs associated with legalization are far greater than the revenues created through regulation. In fact, they argue that the introduction of casino gaming increases the numbers of bankruptcies, suicides, alcoholics, divorces, and all sorts of dysfunctional behavior. However, much of their research is predicated on suppositions and unsubstantiated stereotypes (Barker 153). How about the fight against legalized gambling in the state of Kentucky? One of the major arguments in the state of Kentucky concerns the immorality of gambling. Kentucky is considered a Bible belt state, where religion is a major player in state politics. The expansion of legalized gambling in the state has been blocked now for the last several years because of these religious and social groups in the state. With today’s economic situation, their fight has become harder because government officials see gambling as a means to solve that economic situation. However, that still doesn’t mean that the expansion of legalized gambling faces an uphill battle. Recently, a study was completed in the state to see how the perception of legalized gambling changed among different religious affiliations. The abstract from that report follows: This study seeks to explore whether differences exist among Kentucky residents' perception of casino gaming based on religious affiliation. A survey was conducted to sample 600 residents regarding currently a widely debated introduction of land-based casinos in the state, yielding a response rate of 38.4%. The results support earlier studies regarding the impact religion has on people's attitudes toward gaming. The findings suggest that Catholics have a more positive attitude toward the legalization of gambling than persons of Protestant faiths (Brown 1). Considering that the Protestant faiths makeup the majority of the religious people in Kentucky, the battle over legalized gambling is far from over. Another argument that creeps up in the battle over legalized gambling is that gambling cannibalizes other industries. This argument does appear to have some merit. Many local communities have experienced a significant decrease in the number of nongaming businesses. Unable to pay taxes as land values skyrocket and unable to compete with the low prices found in casino restaurants and entertainment venues, many local businesses have been forced to close up shop. A prime example ap...