Say No to Casinos, the educational campaign devoted to providing scholarly research on the costs of casino gambling in Kentucky, called on Gov. Steve Beshear to open the door to the public on his dealings with the slot machine industry. The campaign issued the call in the wake of Rep. Tim Firkins (D-Louisville) voicing his frustration with the Beshear administration on Tuesday for its lack of communication on the issue of slot machines and casinos in Kentucky.
            “Gov. Beshear announced his position on this issue a year ago during his campaign, he’s been in office for more than a month, it’s his top legislative priority, and the public still doesn’t have the first bit of information on how he proposes to divvy up the state’s wealth to his Casinocrat campaign contributors,” said John-Mark Hack, chairman of Say No to Casinos. “It’s time for the Governor to let the people of Kentucky know what his plans are, rather than keeping the door closed to all of us on such an important issue. The wheeling and dealing should be open to the citizens.”
            Say No to Casinos believes that Kentucky should close the door on its history of back-room deals between politicians and executives from industries that aim to extract the wealth from our Commonwealth. A government by, for and of the people can be and should be conducted in a way that’s open to the people.
            “Reviving the era of smoke-filled rooms, closed door meetings and political corruption won’t do anything to increase citizens’ confidence in government,” Hack said. “If the Governor believes that slot machines are a sound public policy, then he should be completely transparent with the people of our state on this issue.”
            Hack said that he believes the Governor is waiting until after the January 29 filing deadline for state legislative seats to unveil his slot machine proposal so that his supporters in the legislature would not have to face the political accountability of a campaign opponent. If legislators are not required to take a position on controversial issues before the filing deadline, then they reduce the likelihood of gaining election opponents.
            “It’s been done for years by Governors well before our current one, but we can do better than that,” Hack said. “Kentucky government should function according to how things should be done, not according to how they always have been done. If the Governor is confident in his plan for a slot-machine economy in Kentucky, then he should present it to the public BEFORE the filing deadline. It doesn’t serve the people to wait until after the filing deadline. It implies that the administration has something to hide. And it doesn’t serve the people to allow a predatory industry that peddles addictive products to write legislation that would amend our state constitution and open our doors to them.”
            Hack said he doesn’t believe the campaign or the people of Kentucky will get a response from the Governor. The closed-door meetings will likely continue, until the slot machine proponents figure out how to divide the spoils.
 “Apparently, gambling opponents,” Hack said, “lack the resources to compete in a “pay-to-play” political system.”

Dear Governor Beshear:

Congratulations on your recent election as our state’s Chief Executive. I hope you have enjoyed the recent holiday season and wish you a prosperous and productive New Year. The upcoming legislative session will certainly present numerous difficult challenges, and I wish you the very best as you confront them.

Your embrace of slot machines and casino gambling as your top legislative priority presents many Kentuckians with several perplexing questions. In light of all our state’s pressing needs, why would you attach yourself to this initiative, rather than focus on long term solutions like comprehensive tax reform? Given that you have repeatedly claimed, without offering any reliable evidence, that by gambling we’ll gain $500 million in revenue for state government, what will this windfall cost us?

While we doubt the credibility of your $500 million claim, we will acknowledge it for the sake of further deliberation. It is now time that a trustworthy leader would tell his constituents what this slot-machine economy will truly cost. You should neither insult the intelligence of Kentuckians nor avoid your duty by failing to explain in detail what this $500 million claim will cost us.

In order to get a valid, reliable comprehensive cost-benefit analysis of casino tax revenue, we are requesting you to commission a reputable scholar outside Kentucky, independent of gambling opponents and supporters. Such an investigation would fundamentally differ from the economic impact analyses the gambling industry prefers, which offer statistics on jobs creation, construction and development activity, and tax revenue generated, but omit any description whatsoever of the costs of the projected impact.

Two existing cost-benefit analyses of gambling in America describe what these costs would likely include.  The June 1999 National Gambling Impact Study Commission Final Report, issued by a national commission appointed by President Clinton, recommended a moratorium on gambling expansion until the costs and benefits could be investigated further. Their two-year study identified such costs as increases in gambling addictions among adults and youth, financial and credit problems among gamblers, reduced worker productivity, employee theft, other crimes, suicide, divorce, homelessness, and abuse and neglect of children. More than half of these costs end up being paid by taxpayers through government programs.

The most comprehensive cost-benefit analysis is offered in Dr. Earl Grinols’ 2004 book Gambling in America: Costs and Benefits.  A Baylor University economist, Grinols served as Senior Economist on President Reagan’s Council of Economic Advisors, has published more than 80 books and articles, and has studied gambling for more than 15 years without support from the gambling industry or its opponents. He documents the cost of gambling-derived tax revenue as among the most expensive methods of funding government, concluding the costs outweigh the benefits by more than a 3:1 ratio.

Governor, you tell us state government is in a hole because it’s spending more than it makes. Now you are also telling us we can gamble our way out of this hole by going to the slot parlors and gaining $500 million every year, a figure for which you have provided no valid evidence. Where will it come from? Will you play the slots? Will you encourage your family to play the slots, including your children and grandchildren?

You have quoted the great Kentucky statesman Henry Clay: “Government is a trust, and the officers of the government are trustees.” Whether your projection is true or not, you are obliged to the people of our Commonwealth to uncover what it’s going to cost us. A comprehensive, reliable and valid cost-benefit analysis would provide for more informed decision-making than what has happened thus far. Please do not further insult us with promises of free money. Instead, inform us of the real costs of this alleged new revenue. A reliable trustee would explain both the benefits and the costs.

Please know that as a campaign, we stand ready to provide data from sound academic research on the costs and benefits of casino gambling as demonstrated in other states and communities across the country. Please consider us at your service. Thank you for your commitment to our Commonwealth, and again, Happy New Year.

                                                            Sincerely,        
                                                            John-Mark Hack
                                                            Campaign Chair