A study done by a group opposed to casinos found that a new casino has cost the area much more than the tax revenue it has generated. The analysis – done by Casino Free Philadelphia – found that gamblers have lost $232 million since the SugarHouse Casino opened, while the city has received $11 million in tax revenue.
Meanwhile, the casino investors have pocketed $54 million, and more than half of that went to investor who live out of state. The study said more than 500 people have received consumer credit from the casino, creating tens of thousands of dollars of debt.
The study points to increases in crime and bankruptcy since the casino opened. It also says that the jobs that have been created are nonunion and have gone mainly to white men. The majority of residents in Philadelphia are minorities. So the jobs figures indicate that minorities are not benefiting as much from the casino.
The data comes as Pennsylvania’s state treasurer released a report arguing for a 5th casino in the Philadelphia area. While Treasurer Rob McCord’s report says there is room for another casino, it also says the market is becoming saturated and warned of competition from surrounding states. Read the full report here.
In other words, open the casino now and cash in while the getting is good. The study hints at the fact that gambling is not a sustainable public policy. Beyond the social ills that casinos create, the revenue stream is not reliable. In short, governments can’t expect to continue to finance state budgets by getting residents to throw more and more money away at casinos.
It is disappointing to see a smart, progressive elected official – who is likely to run for governor one day – weigh in with his support for even more casinos while ignoring the all the downsides of gambling highlighted in the CasinoFree Philly report.