[Congressional Record Volume 140, Number 142 (Tuesday, October 4, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 4, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      GAMBLING IS BAD BET FOR CITY

 Mr. SIMON. Mr. President, a friend of mine from Decatur, IL, 
Howard Buffett, who at one time chaired the Douglas County Board of 
Commissioners in Nebraska, has written an article for the Decatur 
Herald and Review about gambling in Decatur.
  I am concerned that the message is going out to Indian reservations, 
cities, States, and other governmental entities that the only possible 
way you can balance your budget is move into the area of gambling.
  Historically, in our country we have had more than our fair share of 
abuse in gambling.
  I believe we should move carefully in this area and not do harm to 
the Nation.
  I ask to insert the Howard Buffett item from the Decatur Herald and 
Review into the Record at this point.
  The article follows:

                      Gambling Is Bad Bet for City

                         (By Howard G. Buffet)

       The last thing Decatur needs is casino gambling. It is a 
     mistake to pursue gambling as part of public policy, and it 
     is a sad day when our government seeks to exploit the 
     weaknesses of its citizens rather than to encourage their 
     strengths.
       The claim made by promoters that gambling will support and 
     develop downtown business is a hollow promise. David Hall, 
     Director of Marketing of Hollywood Casino operating in 
     Aurora, was quoted recently as saying, ``I don't know if 
     we're really here to increase the business of anyone else.''
       A professor of economics at the University of Minnesota 
     noted that people spend money on gambling rather than on 
     products or services in the local marketplace. The jobs which 
     are created amount to a management staff for the casino, 
     hardly making up for this loss.
       It is the local retailers who lose the day-to-day revenue. 
     Like a vacuum cleaner, the gambling syndicates wire the money 
     out of the community on a daily basis and such communities 
     dry. Take a statement from an Aurora businessman: ``The 
     casino is killing the small business in this area, and they 
     claimed it would help us.''
       The profits from these operations, regardless of the 
     promises made, are not reinvested in the host community. And 
     think about it--riverboat casinos pocket hundreds of millions 
     of dollars. What provides these profits--your savings, your 
     paycheck, your Christmas money? They end up with your cash; 
     you don't.
       On top of this lost revenue, the tax incentives, and 
     expenditures of tax money to finance infrastructure needs 
     (such as relocating entire streets) make gambling a bad bet. 
     The extra demand put on other public services is anything but 
     small. Research conducted by former New York Attorney General 
     Robert Abrams revealed that in Atlantic City, the demand for 
     police services rose over 2,000 percent because of the 
     increased crime following legalization of casino gambling.
       Gambling also creates the transfer of large sums of cash 
     which can fuel illegal activity. Legal gambling begets 
     illegal gambling; and when gambling debts pile up, so do the 
     problems.
       The deck is stacked against Decatur. According to the book, 
     ``The Odds on Virtually Anything,'' the probability of 
     watching a pitcher pitch a perfect game is 260,000 to 1. And 
     the odds against being struck by lightning are 60,944 to 1. 
     But the odds of winning a million dollar jackpot range from 7 
     million to 14 million to 1. Do you really believe Decatur can 
     win with these odds?
       And the idea that gambling is acceptable because those 
     participating are consenting adults is an easy way to deny 
     the responsibility of dealing with the consequences. 
     Consenting adults don't always exercise good judgment. 
     Americans spent more on gambling in 1989 than on shoes, 
     dental care, appliances, travel and health insurance. In 
     addition, gambling is extremely regressive; it is not based 
     on one's ability to pay. The shoes that can't be purchased, 
     the dental care that is put off until another day, and the 
     health insurance which goes unpaid comes from families who 
     sacrifice their basic necessities for an outsider's gain.
       Gambling is not just a casual occurrence. A Delaware study 
     reported that as many as 80 percent of compulsive gamblers 
     commit felonies. The American Insurance Institute estimates 
     that as much as 40 percent of the nation's white collar crime 
     is committed by compulsive gamblers. At least seven states 
     that have initiated gambling activities were forced to begin 
     operating treatment programs for compulsive gamblers--funded 
     by gambling proceeds. This is the ultimate hypocrisy.
       I've heard that Decatur should pursue a riverboat casino 
     because everyone else is doing it. Apply this same philosophy 
     to raising your children, and take a minute to be honest with 
     yourself. If this argument were presented by your children as 
     justification for involvement in drugs, alcohol, or sex, you 
     know exactly what your reaction would be--``that doesn't make 
     it OK.'' This decision, because of the negative economic 
     impact and the negative social impact, must be taken as 
     seriously as when you consider your response to your 
     children. They will live with this decision longer than you 
     will.
       Finally, don't confuse a gambling establishment with a 
     mall. Unrelated past decisions are irrelevant to this 
     process.
       Whether it is keno, lotteries, or riverboat casinos, 
     gambling is gambling; and there is no right way to do what is 
     wrong for this community.

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