2. ECONOMIC EFFECTS SHOWN TO BE ACTUALLY HARMFUL: The legalization of gambling activities eventually causes: (1) increased taxes, (2) a loss of jobs from the overall region, (3) economic disruption of other businesses, (4) increased crime and (5) large social-welfare costs for society in general and government agencies in particular. For example, two studies of the riverboat casinos in Illinois concluded that for every one job created by the riverboats, most of the surrounding communities probably lost one or more jobs from pre-existing businesses (Grinols 1994; Grinols and Omorov 1995).
3. GAMBLING OFTEN ACTUALLY RESULTS IN TAX INCREASES: Field research throughout the nation indicates that for every dollar the legalized gambling interests indicate is being contributed in taxes usually costs the taxpayers at least 3 dollars– and higher numbers have been calculated (Politzer, Morrow and Leavey 1981; Better Government Association 1992; Florida Budget Office 1994). These costs to taxpayers are reflected in: (1) infrastructure costs, (2) relatively high regulatory costs, (3) expenses to the criminal justice system, and (4) large social-welfare costs (Illinois Governor's Office 1992).
4. IMPACT ON LOCAL POLITICS: Political scientists have raised concerns that the newly developing constituencies in the licensed gambling industry are becoming so widespread that the industry can dictate economic, social, and tax policies.
5. SOCIAL WELFARE COSTS: Legalized gambling activities act as a regressive tax on the poor (Clotfelter and Cook 1989). Specifically, the legalization of various forms of gambling activities makes “poor people poorer” and can dramatically intensify many pre-existing social-welfare problems. For example, one report concluded that without casino gambling, many local citizens would have increased participation in other “outside” activities. “More than 10% of the locals would spend more on groceries if it were not for the casino, while nearly one-fourth would spend more on clothes. Thirty-seven percent said that their savings had been reduced since the casino had opened …” (Thompson, Gazel, and Rickman 1995).
6. ADVERSE BUSINESS DEVELOPMENT: Companies tend to avoid locating in areas allowing legalized gambling. Gambling activities and the gambling philosophy are directly opposed to sound business principles and economic development.
7. PATHALOGICAL GAMBLER PROBLEM: States which embrace legalized gambling activities can expect enormous socioeconomic costs and a decline in the quality of life. Unlike traditional business activities, legalized gambling activities cater to a market consisting of addicted and potentially addicted consumers, and most pre-existing traditional businesses will find it quite difficult to compete for “consumer dollars” which are being transformed into “gambling dollars.” Additionally, each newly-created pathological gambler has been calculated to cost society from $13,200 to $52,000 per year (Maryland Department of Health 1994; Better Government Association 1994). Sociologists almost uniformly report that increased gambling activities which are promoted as sociologically “acceptable” (the acceptability factor) and which are made “accessible” (the accessibility factor) to larger numbers of people will increase the number of pathological gamblers (Goodman 1994: Politzer, Morrow and Leavey 1981; Better Government Association 1992; Maryland Department of Health 1994).
8. CONCLUSION: Increasingly, taxpayers and businesses are beginning to realize that, as Professor Jack Van Der Slik has summarized for much of the academic community, state-sponsored gambling “produces no product, no new wealth, and so it makes no genuine contribution to economic development” (Van Der Slik 1990)