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Ed Morrison · Toledo Blade looks at the promise of its coming casino
November 2nd, 2010
Despite high hopes, casino’s economic payoff not sure bet
My work in the gaming markets in Louisiana demonstrates that for a region to benefit economically, at least 60% of the customer base must come from outside the region.
For example, the casinos in Shreveport draw from Texas, Oklahoma and Arkansas and generate a positive economic benefit for Northwest Louisiana. Customers for the casino in Baton Rouge are largely local, so the net impact is negative (even before you factor in the socials costs).
In Cleveland and Toledo’s case, these casinos are late to the game and will not be able to hit the 60% threshold.
The immediate benefits — higher revenues to local entities, and casino jobs — will mask deeper negative impacts: wealth transfers from Cleveland residents to casino owners and social costs.
These social costs will hit inner city neighborhoods most severely. These costs are highest in neighborhoods closest to the casino. The criminal costs of gaming may appear low at first, but research suggests they increase over time. (Grinols and Mustard, Casinos, Crime and Community Costs: 2004)
Casinos, Crime, and Community Costs
You can download a report reviewing the literature on gaming, prepared for Fort Wayne in 2009 here.
The Kentucky Youth Association, an independent advocacy group for children and families in Kentucky, has also published a useful three page policy brief that can help Cleveland prepare for what’s next: The Social Consequences of Legalizing Gambling in Kentucky .
In Massachusetts, there has also been recent concern over social costs of gambling: Downside of gambling raises worry
You can access the New Hampshire study here.
Last 5 posts by Ed Morrison
- Signing off - February 3rd, 2012
- "The current global development model is unsustainable" - February 1st, 2012
- Market opportunities for developing Chicago's green economy - January 29th, 2012
- Plain Dealer flubs its explanation for firing Tony Grossi - January 27th, 2012
- Linking and leveraging university assets to strengthen regional economies - January 27th, 2012
