Chasing rainbows with legalized gambling

Consider the following recent radio commercial: A vacuum roars in the background. Then comes a women’s voice. “You hear that? “It’s the sound of money and jobs being sucked right out of our state, with New Yorkers going to Connecticut and Atlantic City to gamble.”

Can’t let this happen and, on March 14, 2012, Governor Andrew Cuomo, Senate Majority Dean Leader Skelos and Assembly Speaker Sheldon Silver announced plans to amend Article I, Section 9 of our state Constitution that currently prohibits the “sale of lottery tickets, pool-selling, book-making and any other kind of gambling” to now allow the building of seven new casinos. I feel this is a bad idea. Please let me explain why.

Reason 1 – Enough is enough! Currently 29,000 Video Lottery Terminals (electronically wired slot machines) are conveniently placed in nine racetracks (known as “racinos”) throughout the state and five Indian-run casinos draw down additional billions.

Reason 2 – The gambling industry is currently oversaturated with facilities all competing for the same disposable dollar. Atlantic City and the Foxwoods Resort Casino in Connecticut (which is currently restructuring debt to avoid bankruptcy) are not, in my opinion, economic planning models I’d bet the future on.

Reason 3 – I believe we are being sold a bill of goods on the actual benefits derived from gambling. CBS News found that only “$14 billion of the $54 billion collected nationally actually made it to the classroom.” Why? According to former Illinois state Senator Dawn Netsch, ”the money available simply replaces tax dollars legislators might spend on education, but instead spend on other projects.” Author Charles T. Clotfelter stated in the same newscast that “the net effect on say ‘earmarked’ lottery revenues on education expenses is close to zero.” We’re chasing rainbows.

A cautionary note. During the first half of this year (as reported by Common Cause) nearly $4 million has been spent on lobbying and more than $700,000 in campaign contributions to gear up for the passage of a constitutional amendment that would be needed to permit full-scale gambling. Want to bet on the outcome? A public referendum might be held in 2013.