Gambling and Economic Development

November 29, 2005 | John-Mark Hack

The Herald-Leader recently devoted extensive coverage to both Kentucky’s economic development policies and the near-tragic story of Lexington pastor Whit Criswell. It is supremely ironic that state efforts to lure companies here were compared to gambling of tax dollars, given the havoc wreaked in Reverend Criswell’s life by his reported gambling addiction.

The investigation of these policies describes failures to improve Kentuckians’ job prospects and living standards, while essentially ignoring small business and home-grown entrepreneurs. The incredible irony is that Jim Navolio, a former state Economic Development Commissioner, is now leading the charge to bring full-blown casino gambling to Kentucky.

Navolio is Executive Director of the Kentucky Equine Education Project (KEEP), a well-intentioned effort to raise awareness of Kentucky’s beloved horse industry. I was so impressed by the group’s initial policy agenda that I pitched them my professional services.

They had laudable legislative goals to secure our largest agricultural sector through a Breeder Incentive Fund, repeal of the tax on out-of-state Kentucky horse buyers and the farming supplies sales tax horse farm operators pay. In September, however, Navolio unveiled KEEP’s plans to saddle the Commonwealth with eight full-blown casinos. Since then, I have never been so glad that a prospective client chose someone else.

Navolio wants our legislature to approve a constitutional referendum that would force voters to decide whether or not to allow casinos at horse tracks. The referendum would permit Navolio’s supporters to use over $5 million to bombard the airwaves with the casino industry’s false promises. “It’s déjà vu all over again.” Navolio wants to gamble our thoroughbred industry and our Commonwealth into prosperity.

This obscene proposal should be defeated because it will severely damage our economy, destroy our horse industry and permanently alter our culture. I am not anti-gambling. It’s my love of our horse industry that in part makes me fervently anti-casino. You can help by joining a campaign called Say No to Casinos.

Call your legislators to encourage them to Say No to Casinos and the constitutional referendum in their upcoming session. Here are a few reasons why.

Casinos will drain local businesses. Whatever Kentuckians lose at casinos, the $1.2 billion Navolio predicts, or the $8 – 12 billion others predict, are dollars taken from local economies and given to casino operators. Billions will come out of local banks, hardware stores, auto dealers, home builders and other businesses.

Employees who support gambling addictions with crime will also strain businesses. Reverend Criswell’s story clearly illustrates the extremes of gambling addicts. While he has fully paid his societal debt, Criswell reportedly embezzled almost $200,000 from his employer to support his habit, and did so in illegal gambling. Legalized casino gambling will exponentially increase the likelihood of this and other crimes.

Lieutenant Governor Steve Pence, an outspoken casino supporter, acknowledged as much when he admitted the state would need additional law enforcement to address “casino culture.” Pardon me, Mr. LG, but do we really want economic development that requires more police? The Associated Press recently reported that police busted a crystal meth ring operating in an Indiana casino, which denied any knowledge of the alleged wrongdoing in their PRESIDENTIAL SUITE.

Casinos will destroy Kentucky’s thoroughbred industry. Navolio wants to give race tracks a casino monopoly, but Constitutional experts suggest that such a monopoly isn’t possible. It is far more likely that casino licenses would be granted to operators outside the horse industry, jeopardizing our horse farms with a hostile competitive environment.

Casinos will ensure that state government, with its history of corruption, will become even more corrupt. Do you remember BOPTROT? It was just a short time ago that numerous legislators, including the then-Speaker of the House, were jailed for accepting bribes from gambling industry representatives.

Casinos will produce tax increases. Think increased crime, bankruptcies, prison populations and public assistance. And if you’re worried about Kentucky dollars going to Indiana and Ohio casinos, consider the dollars going to Disney World, Hawaii, the Grand Canyon and other out-of-state tourist destinations. We can neither stop dollars from leaving the state, nor constructively address our public revenue needs with casinos.

There’s no question that Kentucky needs comprehensive economic reform. We don’t need more dire problems. We need the best and brightest from large AND small business, health care, education, the faith community, agriculture, and other social sectors to develop a long-term economic plan for Kentucky.

If we get outside of Frankfort, we can do it. We can secure our state’s economic future, ensure that state government has adequate revenue for public services, and we can do it without the economic drain, crime, and corruption of casino gambling. Then we can deliver the plan to Frankfort in a historic example of Government by the People. But first, we have to convince our legislators to SAY NO to CASINOS.