Lessons not learned Friday, Jul 21 2006

Some years ago when the leges were actually debating whether to have riverboat casino gambling in LA, the “cover story” for this form of legalized gambling was the jobs and other economic development that they would generate. A point was made by opponents that once a riverboat casino sucked all the money out of a community, it would simply lift it’s anchor and go to another locale. The point made by the opponents was dismissed out-of-hand. However exactly what they predicted has and is happening around the state.
Early on the casinos docked in downtown New Orleans (thought to a gambling Mecca) quickly went bankrupt and moved on to other venues. Now, the casino that was docked on the lakefront (and losing money) in New Orleans is now on its way to Amelia in St. Mary Parish. One of the casinos in Lake Charles wants to move to West Baton Rouge Parish. It’s a costly game of “musical casinos.” Where they stop nobody knows.
Economic development is said to be the creation of new wealth. New wealth is that money which comes from outside the state. What we see now is a mere shifting of existing dollars from one pocket to another.
We see the new venues for the old casinos touting the gains in jobs and government revenues, but there is little discussion of the jobs revenues lost at the previous locale. Anecdotal evidence is that as the boats shift locations, the number of jobs decline.
Lessons not learned
Legalized gambling is not economic development. State and local government are addicted to gambling revenues the same as gambling addicts are addicted to the games.
As a result of the lessons not learned, no in-patient or out-patient treatment has been developed for the addiction of our local governments. When the “fix” is taken away, local governments have two choices: raise taxes or cut services. If history is any indicator, as with any gambling addict, getting more revenues (another “fix”) will be the cure of choice.
As the leges became owned by Organized Gambling and the state has become addicted to gambling revenues, no longer is any weight given to whether legalized gambling is beneficial to the people of LA.
Current evidence is to the fact that fewer casinos in LA are producing more government revenues. Although the additional revenues are likely temporary, clearly all the casinos are not needed to feed the state’s addiction. More casinos only spread the revenues around.
My point
I’m not suggesting that we should repeal all the existing gambling. I’m not naive enough to get between an addict and his “fix.” What I am suggesting is that more scrutiny is needed of the overall impact of gambling on the state’s economy. After a casinos boat sucks all it can from a community, perhaps it should NOT be re-licensed in another community just because the local officials can convince the voters to provide them with a “fix.”
Looking at the overall impact of gambling on our state in the absence of the leges is the job of the Gambling Promotion and Protection Board. About all we ever hear from these folks is a monthly report of the “fix.” Shouldn’t we look at the downside of our governmental addiction?
C.B.
Uncategorized 8:00 am

