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In Recent Years, 5 Of 7 States Rejected Gambling, Expert Says
March 31, 2005

Other states suffering buyers remorse

Written by Harvey Kronberg, Quorum Report

Many observers noted how remarkable it was to see Tina Benkiser, chair of the Republican Party of Texas, and her opposite number in the Texas Democratic Party, Charles Soechting, sharing a platform at today's big anti-gambling rally at the Capitol.
Not so Tom Grey, the executive director of the National Coalition against Legalized Gambling.

"I've seen this in state after state, with politicians coming up to each other and saying, 'I can't believe I'm standing here with you,'" said Grey, who is based in Illinois. "The Right is there to talk about the impact on families. The Left is there to talk about social justice and the impact on the poor. Today, it was fascinating to watch the parties try to out do each other on who was most against gambling."

As the various gambling bills work their way through the legislative process, lawmakers and their staff will see a lot more of Grey. He said the stakes could hardly be bigger.

"Texas has not yet been penetrated by the gambling industry. You are the Big Enchilada. Your market is huge," he said. "If Pennsylvania can take 61,000 slots how many do you think you could ram into Texas? Let's get up to six figures."

In the last year or so, Grey has been able to chalk up victories in five states - Nebraska, California, Washington, Michigan and Missouri. "We saw a definite backlash in those states against gambling," he said. Two other states went for gambling - Oklahoma and Florida. He said winning five and losing two was not a bad return when the pro-gambling lobby "had ten times as much money to spend."

Grey said he was happy to let pastors talk about why gambling was bad. He said he wanted to debate the pro-gambling forces on the promises they were making, whether those arguments were about economic development or revenue streams. "It's a question about whether government ought to make addicts out of its citizens. It's about whether it enhances quality of life and enhances Texas. It's about putting slot machines on Main Street," he said.

Grey said any Texas politician thinking about embracing gambling legislation should ask him or herself which is preferable, large campaign contributions or being returned to office. He pointed to opinion polls in Illinois, which has had nine riverboat casinos since 1990. Those polls show 63 percent of voters do not want an expansion of gambling to solve budget problems. He said people in his state "understand they were sold snake oil."

Grey said Illinois politicians were getting the message too. An Illinois House Committee recently voted 8-1 to close the state's nine casinos. This followed a cost-benefit analysis by Crain's Chicago Business that showed that in order to get $617 million in tax revenue, gambling cost the state $1.7 billion in social costs.

Grey's analysis contrasts sharply with those of lawmakers quoted in a New York Times articletoday. Times reporter Fox Butterfield said that gambling revenues have become a critical stream of income in a number of states, in some cases surpassing traditional sources like the corporate income tax and helping states lower personal income or property taxes.

The Times said the sums are so alluring that some officials are concerned that their states are becoming as addicted as problem gamblers. "We're drunk on gambling revenue," said Representative Wayne A. Smith, the Republican who is House majority leader in the Delaware Legislature. "Gambling revenues are like free money."

In Rhode Island, South Dakota, Louisiana, Oregon and, most of all, Nevada, taxes from casinos, slot machines at racetracks and lotteries make up more than 10 percent of overall revenues, the Times reported. In Delaware, West Virginia, Indiana, Iowa and Mississippi, gambling revenues are fast approaching 10 percent.

Grey said the Times story took no account of the costs associated with gambling. "Politicians see it as free money. It's not free. It comes with a cost," Grey said.

Grey said today's Texas debate on gambling mirrored the national scene, with Conservative Republicans pitted against Corporate Republicans. He said that, as a result of today's rally, grassroots Republicans had likely made themselves immune from attack should U.S. House Majority Leader Tom DeLay become further embroiled in the Indian casino gambling scandal involving Jack Abramoff, a Republican lobbyist, and Michael S. Scanlon, a public relations specialist. A Senate committee is investigating why the two Washington insiders charged six Indian tribes more than $66 million in less than four years for minimal work.

Grey also has no qualms about criticizing Democrats, either. He railed against former U.S. Sen. Zell Miller (D-Georgia) for pushing for a lottery in his state on the basis that it would provide scholarship money. "As a result, poor kids are paying for rich kids to go to college. The upper and middle classes love it. What pride can you take in that?" Grey asked. He also said many Democrats had their "noses in the gambling feeding trough," during the Clinton Administration.

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