[Congressional Record Volume 140, Number 148 (Wednesday, November 30, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: November 30, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 INTRODUCTION OF H.R. 5291, TO REESTABLISH THE COMMISSION ON THE REVIEW 
                  OF NATIONAL POLICIES TOWARD GAMBLING

                                 ______


                          HON. JOHN J. LaFALCE

                              of new york

                    in the house of representatives

                       Tuesday, November 29, 1994

  Mr. LaFALCE. Mr. Speaker, today I am introducing a bill to establish 
a second Commission on the Review of National Policies Toward Gambling.
  Twenty years ago, Congress received the final report of the first 
Commission on the Review of the National Policy Toward Gambling. At the 
time of the report, casino gambling was legal in just one State, 
Nevada, where the industry was highly regulated and was the foundation 
for a booming tourist economy. The implementing legislation for the 
Commission was attached to the Organized Crime Control Act of 1970, 
reflecting the primary concern vis-a-vis gambling at the time: that is, 
the extent to which it was linked with criminal activity. Thanks to the 
vigilance of law enforcement at the Federal level and the commitment of 
Nevada officials to oversee a clean industry, gambling and organized 
crime is not the concern now that it was 25 years ago.
  But today, the scope and scale of casino activities, and of gambling 
activities in general, is fundamentally different than it was at the 
time of the Commission's report. Casino gambling is now legal in well 
over 20 States, State lotteries exist in 36 States, and legalized 
gambling in some form exists in 48 States. As a result of regulatory 
changes at the Federal level, gambling in Indian-owned casinos and 
gaming establishments has grown to encompass 15 percent of the 
industry. I do not believe that any members of the original Commission 
could have predicted the evolution of gambling regulations and the 
phenomenal growth of gambling that has ensued, nor do I expect that the 
Commission members would consider their findings and recommendations 
relevant to the present condition of gambling in the United States.
  For this reason, I am introducing a bill to establish a second 
Commission on the Review of National Policies Toward Gambling. The 
focus of national policy toward gambling has changed over the years, 
but the need for national policy is no less critical today than it was 
two decades ago. Currently, Federal oversight of gaming is limited 
primarily to Indian reservation gaming through the Indian Gaming 
Regulatory Act [IGRA] of 1988. Since the inception of IGRA, we have 
seen considerable conflict and competition between Indian tribes and 
States over gambling. As the lines of jurisdiction continue to be 
disputed and as States and tribes enter into increasing levels of 
competition for the gambling dollar, numerous lawsuits and a great deal 
of lobbying effort have ensued.
  In short, a disjointed regulatory structure, with some forms of 
gaming regulated federally and some at the State level, has not served 
our cities and States well in ensuring a careful, knowledgeable, and 
judicious approach to the expansion of gambling. Instead, gambling, and 
casino gambling in particular, has proliferated with little show of 
concern at the State or Federal levels of government.
  What is the cause of this recent proliferation? I suspect there are 
three primary reasons, all centering on a competitive atmosphere to 
attract the gambling dollar. First, States are competing with Indian 
tribes, both in a race to build gambling establishments ahead of the 
other. Second, States are competing with other States to lure potential 
gamblers across State lines. Finally, with the recent success of a 
casino development in Windsor, ON, where 80% of the patronage consists 
of Detroit residents, there is a competition developing between border 
States and Canadian communities to our north. As we trace back to the 
source of the gambling explosion, it appears that the defining moment 
is the enactment of IGRA. The regulations embodied in IGRA have put 
tribes and States in a competitive relationship, creating adversaries 
in a race to attract gambling dollars.

  If gambling were a typical industry, if it were like any other 
recreation and leisure industry, there would be little reason for us to 
focus on the impact of the industry's explosive growth in recent years, 
except to applaud its success. But gambling does not appear to be a 
typical industry. In social and economic terms, gambling may have 
significant externalities that we do not see in other businesses or 
industries. For example, there is a general consensus that increased 
access to gambling results in greater levels of gambling addiction. 
This is a clear social ill resulting from gambling growth.
  Further, as gambling legalization is touted in States and communities 
nationwide as a painless economic development strategy, we must 
consider the true economic impact to the Nation as a whole. To focus on 
one important sector of the economy, the impact of casino proliferation 
on existing small businesses appears to be mixed. Some businesses will 
likely benefit from the increased traffic in a community that casinos 
create. On the other hand, we know that Americans have a fixed amount 
of entertainment income; if they spend more of it on gambling, then it 
would seem that they will spend less of it on movies, restaurants, and 
sporting events.
  Finally, I am concerned about a general sentiment that legalized 
gambling in all forms, from lotteries to high-stakes casinos, is an 
inevitability for just about every community in our country. A Maryland 
official recently stated in the Washington Post: ``You can be against 
gambling, but if your State is going to remain competitive, you have to 
know what your sister States are doing.'' In the same article, a 
spokesman for Harrah's, the Nation's largest casino operator, makes 
this claim: ``Casino gambling is moving toward becoming an essential 
entertainment offering in big cities.''
  How did we get to the point where gambling is an answer to 
competitiveness; and more importantly, what is the likely socio-
economic impact of all 50 States pursuing gambling as a competitiveness 
strategy? Unfortunately, there currently exists no clear body of 
evidence to answer this question at the national level.
  At a recent hearing of the Committee on Small Business, we tried to 
get some answers from an expert panel of witnesses. And while they all 
offered valuable testimony that contributed to our understanding of the 
issue, nearly every witness suggested that there is a lack of good 
information on gambling's impact nationwide. It is time for a national 
commission to meet this need by re-examining a topic that has not been 
addressed at the national level in over 20 years. In addition to 
providing currently unavailable information on the impact of gambling 
proliferation, the commission will offer valuable recommendations on 
reforms to the current gambling regulatory structure. The findings and 
recommendations of a national commission will contribute significantly 
to the effort toward sound public policy regarding gambling at the 
Federal, State, and local levels of government.

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