Friday, July 31, 2009

Gambling's endgame: economic armaggedon

Stripped of all emotion, political gamesmanship, ulterior motives and special vested interests what remains are these facts on the slots/expanded gambling issue.

First, good people gamble. In fact those who gamble slots machines include some of the finest people I know. Grannies gamble for goodness sake, so there is nothing inherently evil about people who make this choice. But that is not the point.

Second, some Kentuckians do gamble away their money in out of state casinos. About 16% of Kentuckians have done so, that’s it, 16%. Yet our venturing gamblers have neither hurt Kentucky nor, more importantly, have they helped casino states. For the fact is that casino state budgets are busted, and have historically been more stressed than Kentucky’s. They have waited in vain for the financial salvation slots were supposed to bring, even before the current recession. In fact, most states have seen their budgetary situation worsen with the advent of expanded gambling. But that is not the point.

Third, the fate of the horse industry may or may not be as dire as those with a vested interest in expanded gambling allege. With fear-based emotional appeals they have been allowed to frame the issue in a way most to their liking. Regardless, there are many funding alternatives should such be necessary. Slots are the worst option for they will usher in far more damage to our overall welfare than the short term infusion of cash to a select few. But that is not the point.

Fourth, pro-gambling legislators, including some of our top leaders, truly want what is best for Kentucky. They are sincere in their belief that it will solve much of our financial needs, that it will save the horse industry, help our schools and lower our taxes. Yet not only are their forecasts wildly inaccurate (35% of a billion is $350 million, not the $700 plus million being tossed around) but they are shortsighted. Gambling’s costs will outweigh its revenues at least three to one over the long term, which is why gambling states’ budgets are such a wreck, see above. But that is not the point.

Fifth, a court will eventually rule that a Constitutional amendment is necessary in order to expand gambling to slots, vlt’s or any other type of electronic or casino gambling. The voters, in approving the 1988 Constitutional amendment allowing the lottery, intended to permit only the traditional scratch off and online lottery games then in existence. This traditional lottery, and only this, is what the state promoted to us before our vote. In no way whatsoever did we vote to approve additional gambling beyond that limited exception, nor did the legislature intend for us to. We would, therefore, have to amend the Constitution once again in order to allow for expanded gambling.

But why would we want to? It is an absolute certainty that the unchecked spread of gambling will destroy our nation, economically and socially. I guarantee this eventuality with every last ounce of intellectual credibility that I may be fortunate enough to possess.

I can see the future for I have studied the past. This is the point.

In the late 1800’s we Americans saw our communities being destroyed by the lotteries (then the only widespread form of gambling) which is why not only Kentucky but every state changed their constitutions to prohibit gambling’s ugly head from ever rearing itself again. Today’s electronic gambling explodes that harm exponentially, which is why slots are called the “crack cocaine of gambling.” It may take a few more years, but eventually this same harm will be so noticeable that we will once again demand a return to sanity and a prohibition of the most lethal form of gambling.

It is only a matter of time before Americans finally connect the dots between community decline and casino style gambling. Overnight gambling will be seen as the pariah it truly is and the process of tearing it apart will take hold. This is the point.

Why should Kentucky not, for once, get ahead of the curve and lead? Why should Kentucky not follow the tried and true ways of building long term vitality instead of the illusion that we can get something for nothing? Why should Kentucky not resist contemporary society’s worst habit, the all too common quest for immediate gratification and short term gain that inevitably leads to long term pain?

Why must we let our leaders use gambling to slough off our problems on our most vulnerable citizens? Why must they continue to evade responsibility for tackling our real problem, which is an antiquated tax system?

We must stand tall and not allow ourselves to get sucked in by the propaganda, the doomsayers and the politicians, who are well meaning, but all too willing to take the easy buck rather than seek long term solutions. Just because other states have lost their minds is no excuse for us to lose ours.

The facts are clear: casino style gambling has worsened states’ budgets, hurt economies, destroyed lives, and thereby lowered our overall well being. Kentucky must do something it has rarely done since the first pioneers crossed the Cumberlands: lead.

Richard Frank Dawahare 7/30/09

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