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WEST OHIO CONFERENCE UMC (United Methodist Church)
STATEMENT REGARDING ISSUE 3:
Dr. Earl Grinols, a Distinguished Professor of Economics, has conducted many studies of gambling’s impact on society. The results? For every $1 gambling generates, it costs $3 in social costs. What are these costs?
CRIME
In counties with neighboring casinos, 8.6% of property crime and 12.6% of violent crimes are caused by casinos. In counties with casinos, the rates are much higher! Comprehensive studies indicate that crime increases 10% yearly.
7.9% of total crime is due to gambling (according to the FBI)
7.7% of property crime
10.3% of violent crime
For an average county with 100,000 population, this implies 772 more
larcenies, 357 more burglaries, 331 more auto thefts, 12 more rapes, 68
more robberies and 112 more aggravated assaults.
The Indiana legislature passed a special $52 million yearly appropriation to increase crime patrol around their casinos.
An estimated 40% of white collar crime has its roots in gambling.
JOBS
A study of Aurora, IL found that only 3% of businesses experienced an increase in revenues after the arrival of the riverboat casinos. The other 97% had experienced a decline resulting in loss of jobs.
In Atlantic City, 25% of small businesses closed 3 years after casinos opened. Prior to casinos, the unemployment rate in Atlantic City was 30% higher than the rest of the state. 10 years later, it is 50% higher than the rest of the state.
Professor Fredric H. Murphy of Temple University proved in his economic impact study of gambling in Philadelphia there would be a net loss of over 4000 jobs if gambling is expanded.
ADDICTION AND CARE OF FAMILIES
Studies show that gambling addiction rates increase the closer casino gambling is
to where you live.
a. The chances of becoming addicted increases to 50% if gambling is within 50
miles of where you live.
b. The changes of becoming addicted increases by 90% if gambling is within 10
miles of where you live.
c. The chances of becoming addicted increases by another 67% if the community
is poor.
(Ohio is the only state in the union to have 3 of the poorest cities in the country-Cleveland, Toledo and Cincinnati.)
60% of casino revenue comes from those making less than $25,000 per year.
TAXES
The amendment defines transactions to be taxed. Any money made by the casinos on cash games or slot machines would be exempt from the tax, because "cash" is not in the definition of what is taxable.
Penn National is saying that they intend to pay taxes on cash receipts. It does not matter what they say. The language in our Constitution will determine any legal challenges. The only way to change this would be through another statewide ballot issue.
As a publicly owned business, Penn National’s investors would be within their legal rights to sue Penn National for paying taxes they are not required by law to pay.
None of the money will go into the state’s General Fund.
AMENDING THE CONSTITUTION FOR A MONOPOLY
The State’s Constitution is the highest legal document. Amending the Constitution to allow for a monopoly is not the proper use of our constitution.
In 2008, Penn National spent millions of dollars to defeat the gambling issue before Ohio voters. One of their own points was that it would enshrine a monopoly in the state’s constitution. Now that it would benefit them, it is no longer a valid point of op-position.
DISTRIBUTION OF MONEY
Proceeds will go to all 88 Ohio Counties based on population. Counties suffering from high unemployment and high poverty will not be major beneficiaries of the money. Those who have will continue to receive more.
CASINO GAMBLING HURTS FAMILIES
1. Addictionâ€â€Within 50 miles of a casino, the prevalence of prob-
lem and pathological gambling roughly doubles. Studies show
that between 30-50% of casino revenues come from addicts.
2. Suicideâ€â€About 50% of all pathological gamblers consider sui-
cide. One in four will attempt suicide. One in 10 spouses of ad-
dicts will attempt suicide.
3. Bankruptcyâ€â€SMR Research Corporation found gambling to be
“the single fastest–growing driver of bankruptcy.†Numerous
studies conclude that more than 20% of pathological gamblers
file for bankruptcy.
4. Crimeâ€â€A high percentage of problem gamblers resort to crime
to support their addiction or to escape financial ruin. One National Institute of Justice study found that more than 30% of
pathological gamblers who had been arrested reported having
committed a robbery within the past year, about 13% said that
they had assaulted someone, and 20% admitted to selling
drugs.
5. Domestic Violenceâ€â€A University of Nebraska Medical Center
study concluded that problem gambling is as much a risk factor
for domestic violence as alcohol abuse. National Research Council studies indicate that between one quarter and one half of
spouses of compulsive gamblers have been abused. In Deadwood, South Dakota, after two years of casino gambling, child
abuse cases increased 42%, while domestic violence and assaults increased 80%.
Destruction of Familiesâ€â€A Gamblers Anonymous survey revealed
that 28% had been separated or divorced as a direct result of their
gambling problems. A nationwide survey representing 2 million
adults identified gambling as a significant factor in a previous divorce.
All information from http://www.westohioumc.org/nocasinos
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