New york Gov. Andrew Cuomo’s recent proposal to create seven casinos in New York state has been greeted with both praise and contention. Cuomo and the plan’s supporters pride the prospective investment in the gambling industry as an opportunity for job creation, with a portion of revenue aimed at funding local schools. However, these economic benefits can be achieved by investing in other businesses such as restaurants, concert venues and shopping centers, and rather than betting on casino enterprises to yield a reward.
Studies show gambling establishments often lead to an increase in crime, bankruptcy, divorce and suicide — not to mention gambling addiction. But health and social concerns aside, casinos yield little to no long-term economic offshoot, and the gambling market has been slow to recover following a recession, and it has been climbing to economic stability at a snail’s pace. The plan will, however, deflect spending away from smaller local businesses that are the backbone of the economy.
The increased number of problem gamblers in the area would result in a rise in bankruptcies and dependency on welfare programs. The Coalition Against Gambling of New York reports the economic benefits per adult of a higher casino presence will only be an additional $1, while the socioeconomic costs of excessive gambling will rise from $50 currently to $296 per adult. This is a simple case of risk outweighs reward.
Heavy reliance on such a volatile industry to spur economic growth and fund local schools is a dangerous investment. Looking west to the gambling mecca of Las Vegas, one out of six jobs disappeared during the height of the recession. Tourists stopped visiting the gambling tables. Statistics show that the total amount spent on gambling was still $500 million lower last year than in 2007.
Even though Cuomo and his investors may be swayed by the allure of speedy profits, they must account for the implicit socioeconomic toll of the casino industry. Any financial gain from this expansion is negated by evidence that 50 percent of revenue generated would come from gambling addicts — the worst of whom cannot afford groceries or even child support. Gambling addiction costs the United States approximately $50 billion dollars every year. While the immediate economic reward these casinos would offer is attractive, the long-term payoff is bleak.
EDITORIAL BOARD:
Raquel Woodruff (Chair), Edward Radzivilovskiy (Co-chair), Peter Keffer (Co-chair), Harry Brown, Christina Coleburn, Marcelo Cicconet, Omar Etman, Nina Golshan, Ian Mark, Nikhil Sethi