Jumping means losing real money

Casino backers claim Ohio is losing money by not having a casino. The truth is exactly the opposite. By not having casino gambling in Ohio the state economy is keeping millions of dollars in the normal consumer economy. These dollars are going to pay for homes, cars, medical care and college tuitions. Every dollar not lost in a casino is a dollar available for investment in the rest of the “normal” consumer economy.

A first principle in this debate is to remember that every tax dollar raised by a casino is a dollar some taxpaying citizen lost in a casino. For example, in Michigan casinos transferred $350 million tax dollars into government coffers in 2006 (most current data available). The money gambled away in those same three Michigan casinos was $1.3 billion dollars. Real people lost that much real money. Those dollars could have been saved, or spent on a mortgage payment, a new car, a college tuition bill or for prescription drugs for senior citizens. Real people lose real money at extraordinary rates in casinos.

What if people are just spending money they would have spent on entertainment anyways? If that were the case five to seven percent of the population wouldn’t be facing problem and pathological gambling addictions. Not many people go bankrupt because they go to the movies too often. They don’t lose their homes because they are Tribe, Bengals, Browns, Reds or Buckeye fans (unless they are addicted to sports betting as well).

What’s wrong with a little competition for entertainment dollars in America? Competition is a great asset in a free market system. But what about casino gambling promotes real competition? MyOhioNow wants an exclusive (albeit temporary) monopoly on casino gambling in Ohio. If casino gambling advocates want to talk free market competition then shouldn’t everyone be allowed to open a casino?

 In addition, the gambling dollar is a junk-dollar in the entertainment economy. Casinos don’t create a product. How many people does it take to plug in a slot machine? How many parallel businesses exist solely because casinos exist? People usually leave a casino with much less than they came in with. By comparison, movie theaters exist because there is a huge film industry creating product and employing people everyday. Professional sporting events are supported by massive television networks, equipment manufacturers, print vendors, concessions, stadiums, restaurants, etc. Amusement park dollars create thousands of jobs for students, vendors, manufacturers, transportation, etc.

With casino gambling the House and only the House always wins.