Gambling Expansion in New Hampshire
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New Hampshire Gaming Study CommissionCannibalization of Lottery RevenueGambling and CrimeSocial Impacts - PowerPoint PPT Presentation

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Gambling Expansion in New Hampshire David Lumbert Boyd Lever Andrew Newcomb Is it a Gamble ? New Hampshire Gaming Study Commission Cannibalization of Lottery Revenue Gambling and Crime Social Impacts The Fiscal Impacts of Casino Legalization Cannibalization of State Lottery Revenue ?

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Gambling Expansion in New Hampshire

David Lumbert

Boyd Lever

Andrew Newcomb

Is it a Gamble?

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The Fiscal Impacts of Casino Legalization

Cannibalization of State Lottery Revenue?


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The United States: A Nation of Lotteries

- 43 States with Lotteries

- Contributing $70 to $2500 Million to State Budgets

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What About Introducing Casinos ?


In Theory:

- “Significant Cannibalization” of Lottery Revenue

- Fink, Rork… what did he say

- Navin… what did he say

But models are specific; Not universally applicable.

Empirical Evidence from the 10 states with both

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States with Casinos and Lotteries

- 10 States with Lotteries & Casinos

- The Research Targets to Determine the Degree of Cannibalization of Lottery Revenues

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  • - Compare Revenues in 10 States immediately pre- & post- Casino

    • - Tease out the magnitude of cannibalization

  • Quantify Fiscal Impacts of Changes in Casino-related Employment

  • - Money is Not Everything: What are the other Impacts of Gambling Expansion ?

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    Gambling and Crime

    Will expanding gambling in New Hampshire lead to an increase in crime?

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    2008 Crime Rates in NH and United States




    NH is safest state in country



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    Tourism-Crime Connection

    • As population density increases, crime rate increases

    • Tourists particularly vulnerable

    • Nongambling resort complex constructed in Kohala, Hawaii and saw crime rise 300 percent in five years

    • No specific link between gambling and street crime (Miller and Schwartz, 1998)

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    Casino-Crime Connection

    • Casino patrons are different from patrons to other tourist destinations

    • More incentives to commit crimes around casinos

    • Areas that legalize gambling will almost certainly see increases in crime

    Percentage Reporting

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    Casinos Cause Crime

    • 8% of crime in casino counties would not be there if the casinos were not there

    • Crime in casinos remains stable for three years following establishment, but increases after three years

    • First ten years of casinos operating in Atlantic City crime rose 258%

    • Casinos are associated with an increase of crime in Wisconsin, 6.7% of major crimes caused by casinos

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    Casinos Don’t Cause Crime

    • Some riverboat casinos in Indiana did not see crime raise

    • Crime in the community does not increase, only crime in the hotels and casinos increases(Curran and Scarpitti,1991)

    • Casino patrons carry large amounts of cash and drink free alcohol, but actual casinos do not cause crime (Walker, 2008)

    • 2003 Study: Half of cities with casinos saw crime increase, half saw crime decrease

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    Findings on Crime

    • No clear consensus exists on whether or not casinos actually cause crime, but very likely that property crimes in and around the casino will increase

    • If tourism increases, New Hampshire must be prepared to allocate adequate resources to fighting the crime associated with gambling

    • Avoid “boomtown” phenomenon (Peak, 1993) where bringing a casino to a rural area causes shock to law enforcement

    • Further research is needed in determining actual costs of crime, effect gambling has on tourism, and evaluating current crime rates

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    Who are

    Problem and Pathological Gamblers?

    • Comprise 2-5% of total adult population

    • Contribute 25-50% of all casino revenues

    • Cost $10,000 per pathological gambler in costs annually

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    Annual Social Cost per Pathological Gambler

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    Links to Problem Gambling?

    • Age

    • Proximity

    • Type of Gambling

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    Gambling and Loss of Social Capital?

    Social Capital is Already Declining…


    Casino Gambling Expedites the Loss