Casino Fact and Fiction Part 2: It’s the economy stupid

In Part 1 of this series I went over how the fight between pro- and anti-gambling groups tends to go down, as well as offering up my thoughts on the subject. Now I will take a look at the data and the talking points that are commonly used in the debates over casinos, starting with Jobs and the Economy.

Jobs

The original estimates put the number of permanent jobs at 15,000, with some 6,000 construction jobs at the beginning of the project. But let’s be realistic; chances are these numbers are highly inflated. Even allowing for these numbers to be 30-40% too high, we are still talking in the neighborhood of 10,000 new jobs.

And contrary to popular opinion these are not “jobs nobody wants.” Resort casinos need everything from dealers and cocktail waitresses, to hotel administrators and marketing departments. They need valets, front desk help, security, maintenance, housekeepers, bartenders, restaurant managers, and chefs. The job possibilities are not only long, but they encompass the entire spectrum of entry-level positions to upper management.

So the next time you hear someone call these “jobs nobody wants,” or spout the equally shameful mantra that it will attract “illegal” workers, please ask them how nobody wants to work security or maintenance, and ask them how terrible it must be to make your way through the world as a lowly waitress or working the front desk of a hotel.

Effect on the Local Economy

I recently saw an argument where someone said (paraphrasing here), “Casinos are designed to keep you inside, the local economy will not get new customers,” which seems astute on the surface, but once you peel back that first layer it really falls apart. Most people going to a casino are there for a day, maybe two. They go to see a show, to hang out with friends, or just to gamble, but most people drive to and from the casino within hours, not days.

Local restaurants will see increased business (assuming your food is good), gas stations, convenience stores, grocery stores, etc. People will need to stop in and get goods just like they do going to the beach. Anyone who has been to Foxwoods knows there are several small businesses along the main route: I wonder what a gas station one or two miles from Foxwoods was worth in 1990 and what it was worth in 1994, or today (you can go ahead and adjust for inflation, it won’t matter)?

If local businesses will not flourish near a casino why are there shops and businesses on the Las Vegas strip? How are there restaurants and nightclubs off-property in Las Vegas?

Let’s not forget the massive influx of revenue from licensing and later taxation of these casinos either.

In Part 3, the final installment of this series, I’ll look at crime and problem gamblers.