Testimony to the Joint Committee on Economic Development and Emerging Technologies

In Opposition to  S. 174 "An Act Establishing the Massachusetts Gaming Control Act" and

H. 4068"An Act Establishing and Regulating Resort Style Entertainment in the Commonwealth" 

By Louise Haldeman, League of Women Voters of Massachusetts Casino Gambling Specialist

October 29, 2009

For the second time in less than two years, the Massachusetts Legislature in considering changes to its gambling laws that would allow Class 3 gambling in the state.  The League of Women Voters of Massachusetts strongly opposes any such measure.

In the early 1980s, when there were proposals to build casinos in the western part of Massachusetts and in Hull, the League undertook an extensive study of the subject to see if casinos would indeed be a benefit to the Massachusetts economy.  What we learned, as we considered the pros and cons, convinced us that they would not.  Since that time, both before and after Governor Patrick’s proposal of 2008, we have continued to review the arguments and examined many independent studies and articles written by specialists in economics, sociology, law, taxation, and psychology, as well as concerned citizens.

It is clear that, even in times of economic prosperity, gambling is merely a minor asset to the wealth of a given state.  The social costs associated with those persons who become addicted to gambling, as well as the infrastructure costs to nearby communities, far outweigh any financial benefits.  Permitting the introduction of Class 3 gambling, with all of its well-documented attendant problems, at a time when the Commonwealth and its citizens are struggling with the effects of the recession, will only perpetuate our economic woes.

Although the supporters of casinos have tried to characterize them as “recession proof,” the experience of neighboring states proves that not to be the case.  Casinos are laying off employees, thus adding to an already existing unemployment problem.  All are experiencing a decline in profit.  Some are facing bankruptcy.  Even when casinos do well, no state has solved its fiscal problems by the introduction of casinos.  Pennsylvania, Connecticut, and New Jersey - states closely resembling our own - have much higher taxes than Massachusetts.  Their casinos have not helped.

Gambling is a business that drains the economy; it does not bolster it.  Independent research has shown that for every $1 earned in revenue from gambling, $3 is spent in the costs associated with it.  Casinos in particular require a vast infrastructure to support them.  There are demands on roads, water, waste disposal, public safety, and housing for the work force.  Study after study has demonstrated that the amount of revenue generated by casinos has not proved equal to the expenses incurred by nearby communities.

The number of jobs created through gambling is vastly overstated, other than those in construction, which are themselves transient.  Few truly new jobs are created.  Casinos are self contained, offering many services on the premises.  The restaurants, gas stations, and small shops which would ordinarily flourish in the shadow of larger industries simply cannot compete successfully with those at the casino itself.  As existing small businesses are forced to close, the owners and former employees may well take jobs at the casino instead, which means the casinos are more an agency for job transfer that a creator of jobs.

Furthermore, with the increase in the incidence of embezzlement and similar crimes by persons whose gambling habits get out of hand, other businesses and industries become extremely reluctant to open new facilities in the vicinity of casinos.  Serious unemployment problems continue to exist in the states which have casinos.

Massachusetts has an excellent record when it comes to the passage of laws and regulations that are designed to protect the health of its citizens.  We promote good environmental standards and measures designed to improve the public health and the welfare of our children.  For the state now to promote gambling, knowing that many citizens will be adversely and tragically affected, is contrary to the standards of public welfare we have set for ourselves.

Massachusetts needs industries and businesses that will expand the wellbeing and wealth of its citizens.  It needs jobs that provide decent wages and that people can be proud of having.  It does not need an industry that will only weaken its long-term development.

For all these reasons, the League of Women Voters of Massachusetts opposes the implementation of Class 3 gambling in the state, in particular the passage of S. 174 and H. 4068, and urges the members of the Joint Committee on Economic Development and Emerging Technologies to also oppose these bills.