Steve Wynn, a casino owner once said, “Get it straight…there is no reason on earth for any of you to expect for more than one second that just because there are people here [at casinos], they’re going to run into your store, or restaurant, or bar.” Donald Trump, in an interview with the Miami Herald, said “People will spend a tremendous amount of money in casinos, money that they would normally spend on buying a refrigerator or a new car. Local businesses will suffer because they lose customer dollars to the casinos.”

According to Baylor University Economist Dr. Earl Grinols, casinos absorb existing entertainment, restaurant and hotel business, and take dollars that would otherwise be available to other local retail businesses. The result is elimination of jobs in the casino trade area, as well as a reduction of governmental revenue from the sales, employment and property taxes paid by local businesses. Casinos don’t increase business revenue in any sector other than the gambling sector.

Consider this context: in over 15 years of lottery sales, the Kentucky Lottery Corporation has sold almost $9 billion worth of tickets. Last year, Kentucky horse tracks recorded approximately $540 million in wagers, their total handle. Governor Beshear’s proposal suggests that casinos would generate $1.4 billion in revenue to be shared by casino owners, the horse industry and state government. Another way of looking at it is that Kentuckians will lose $1.4 billion EVERY YEAR. In order to generate that level of revenue, according to the casino business model standard of $10 wagered:$1 revenue, Kentuckians will have to wager approximately $14 billion a year, EVERY YEAR.

Compare this annual figure to 15 years of lottery ticket sales ($9 billion) and to last year’s total horse racing handle ($540 million), and it’s clear that Kentucky’s economy will suffer from the huge increase in dollars wagered and the exponential expansion of gambling proposed by Governor Beshear. Our businesses, large and small, simply can’t afford a $1.4 billion annual hit. Ford Motor Company surely can’t afford it, and neither can Toyota. Local small business would be even harder hit, especially businesses located in so many of our historic downtown areas that have recently undergone extensive renovation and rehabilitation.

Lost revenue is not the only damage done to local business. Dr. Grinols calls casino impact on local jobs markets “Jobless Growthlessness.” He documents, after studying the economic impacts of gambling for 15 years, that casino employment displaces local economy jobs without improving community resident standard of living. He also clearly shows that businesses lose in general merchandise and miscellaneous retail and wholesale trade when casinos come to a community. For every $1000 in casino revenue, businesses within a five mile radius of casinos lose $142; businesses within a 5 - 10 mile radius lose $217. When considering losses of businesses up to 30 miles away, the total is $381 for every $1000 in casino revenue.

Governor Beshear and the other Slots Pushers project $1.4 billion in revenue. Using Dr. Grinols’s data, businesses within a 30 mile radius of casino locations will suffer total revenue losses of approximately $476,250,000. Kentucky businesses simply can’t afford this kind of annual hit on their bottom lines. Casinos are bad for business, and more of a bad thing will never make it good.

This documented trend should be the top concern of several major business sectors in Kentucky. If the slots pushers get their wish of 12 casinos in Kentucky, then other Kentucky businesses will suffer:

• Tourism - many visitors who enjoy Kentucky’s varied natural and historic destinations will choose not to come back because of casinos. Others that would be drawn to our attractive tourist destinations will be drawn instead to gamble. The money they loose would likely have been spent at Kentucky’s tourist-related businesses.
• Restaurants - Kentucky’s independent AND chain restaurants will lose business. It’s impossible to compete with the complimentary meals and free drinks that are standard fare for casinos.
• Bed & Breakfasts, Hotels and Motels - like restaurants and tourist destinations, the hospitality industry will suffer significant revenue reductions as a result of the complimentary rooms offered as a standard part of the casino business model.  
• Performing Arts and Performing Arts Venues - The Arts community in general will suffer as contributions decrease. Existing venues are likely to find themselves in the uncomfortable position of competing with casinos in drawing top-name entertainers. Casinos’ contracts with entertainers often prevent them from returning to the same market area in a different venue for a period of between 1 and 3 years. These restrictions mean that venues in all Kentucky cities will be playing second fiddle to casinos for many top name groups and individuals.
• Retailers of Big Ticket Items - Car dealers, appliance sales, recreational vehicles (boats and RV’s), and other sellers of major purchase items will likely see their sales decrease as discretionary income is sucked up by the slots.
• Bankers, Insurers and Other Business Services - As businesses that rely on discretionary income are hard hit, their ability to repay loans and retain insurance and other business services will be diminished.    

Casinos are bad for business, plain and simple. If you are a business owner or an employee in a business that relies on discretionary income, or if you’re a banker, insurance or other business service provider, then you should join our efforts. The business community will suffer is casinos are allowed to buy their way into our state. If the business community suffers, then our entire Commonwealth suffers. Join us today! Say No to Casinos!