This in-depth report by the Detroit Free Press chronicles the downfall of one of America’s great cities and explores the many reasons behind the city’s financial collapse. Though originally heralded as a possible savior for the city, casino gambling became just another factor in the downfall of Detroit. Gambling, and the tax increases that often went along with it, were one of the factors the article identifies as contributing to Detroit’s decline.
Since the decline of the steel industry, Gary, Indiana has been a city struggling to keep up. Twenty years ago, Gary opened its first casinos, spirits buoyed by the casino industry’s lofty promises of economic development and help for cities in need. Now, after two decades of casino gambling and two decades of struggles in Gary, lawmakers are beginning to see that those promises have not panned out.
Casinos were supposed to generate billions of dollars of revenue for Native American tribes, allowing them to be independent of taxpayer-funded federal subsidies. However, while their financial backers reap heavy profits, the casino tribes have yet to see the revenue they need and are thus still reliant on money from the US government. This article, by the Niagara Gazette, documents one tribe’s struggle to gain the profits the casino was built to raise.
2013 Casino-owning tribes betting on help from the US government
Even the researchers funded by casino interests admit slot machines do nothing to help horse racing and the workers connected to it. The late Bill Eadington, who was the director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno, told the Maryland Capital News Service in 2013, “The whole phenomenon of racetrack casinos has really been a sham. It’s done virtually nothing to increase the demand for horse races.”
Below is an article that details the growing gap between lottery profits and aid for education in New York state. While the revenues for the New York lottery have soared in recent years, the percentage that is allotted to the schools of New York has remain unchanged. The article also chronicles the ongoing debate over lotteries in the state of New York and is a great read for anyone looking to see the impacts of lotteries on education.
This article by The Chicago Tribune outlines how poorer neighborhoods are bringing in the stark majority of sales, showing that the most disadvantaged in the Chicago community are often the most exploited by the lottery.
2013 IL Lottery – poorer neighborhoods bring in most revenue
Homeowners in Pennsylvania were hopeful, after a law was passed in 2006 that dictated the distribution of fund from casinos, that they would finally see a sizable reduction in their property taxes. It was break they needed, however, it was not one they received. Now, according to this article by the Pocono Record, homeowners are becoming more disappointed with the tax relief, or lack thereof, they are getting from casinos in their community.
2012 Gambling tax relief falls short of expectations for struggling homeowners
Below is a great, concise piece by Think Progress, a political blog of the Center for American Progress, about how lotteries have been a major policy failure because they are highly regressive and are an unsustainable revenue source, ultimately worsening state budget imbalances.
2012 Mega Failure- Why Lotteries Are A Bad Bet For State Budgets
A new report is out showing that legalizing casino gambling in states results in higher rates of public corruption. Casinos help create a “culture of corruption” in states in which they are legalized, which harms the community as a whole. Here you can find a summary of the report done by the Pew Research Center as well as the report itself.
Business Insider spotlights 18 ways in which lotteries prey upon America’s least favored.
