ERLC Analysis Points Out Criminal, Economic Impacts of Gambling

The Ethics and Religious Liberty Commission has posted an excellent analysis piece on gambling.  Read it in its entirety here.

Kentucky political leaders have argued that gambling will be a boon to the economy. Evidence indicates otherwise. Some key points from the ERLC analysis:

Gambling Contributes to Crime and Corruption

The growth of crime in those states and cities that legalize gambling is easily demonstrated. The most comprehensive study to date concludes that after three or four years, counties with casino gambling experience increases in rape, robbery, aggravated assault, burglary, larceny, auto theft, and human trafficking compared to counties without casinos.

Many careful studies on gambling point out frequent incidents of corruption related to gambling. Police are the most immediate targets for corrupting influences. Since police operate at the entry point of the criminal justice system, they are both more available and more desirable as targets of gamblers seeking to make payoffs and bribes. But gambling corruption is by no means limited to the police. Elected officials as well as individuals in the gambling business are also subject to the corrupting influence of gambling.

Organized crime benefits from the expansion of gambling as well. William Webster, a former FBI director, said, “I really don’t see how one can expect to run legalized gambling anywhere without serious problems . . . . Anytime organized crime sees an opportunity to put a fix on something, to get an edge on something, it’ll be there. And gambling is still the largest source of revenue for organized crime.”

Gambling Disrupts the Economy

Until recently, business and labor leaders have led many of the successful efforts to prevent gambling from entering states and communities because they realized that gambling is bad for the economy and especially bad for relatively low income laborers. Unfortunately, many current business and labor leaders have become either neutral or supportive of gambling because of its alleged economic benefits.

However, increased gambling always results in increases in unpaid bills, embezzlement, bankruptcy, and absenteeism from jobs. In addition, gambling does not help a state’s economy in any appreciable way. A lottery returns to the state an average of only about 32 cents of every dollar taken in. The remainder goes to prizes and administration. In only three or four states does the revenue from lotteries, casinos, pari-mutuel betting, and any other existing forms of gambling contribute more than 3 percent to a state’s total budget. The minimal contribution that gambling makes to a state’s economy is more than offset by the social and personal problems it creates.

 

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