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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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slide1

Gambling Expansion in New Hampshire

David Lumbert

Boyd Lever

Andrew Newcomb

Is it a Gamble?

slide2
New Hampshire Gaming Study Commission
    • Cannibalization of Lottery Revenue
    • Gambling and Crime
    • Social Impacts
slide3

The Fiscal Impacts of Casino Legalization

Cannibalization of State Lottery Revenue?

VS.

slide4

The United States: A Nation of Lotteries

- 43 States with Lotteries

- Contributing $70 to $2500 Million to State Budgets

slide5

What About Introducing Casinos ?

NEED TO EDIT HERE

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

slide6

States with Casinos and Lotteries

- 10 States with Lotteries & Casinos

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

slide9

Findings and Future Directions:

  • Fear of Lethal Cannibalization Not Generally Realistic
          • Tax Rate on Commercial Casino ?
  • - 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 ?
slide10

Gambling and Crime

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

slide11

2008 Crime Rates in NH and United States

D

B

E

NH is safest state in country

C

A

slide12

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)
slide13

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

casinos cause crime
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
casinos don t cause crime
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
findings on crime
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
slide18

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
slide20

Links to Problem Gambling?

  • Age
  • Proximity
  • Type of Gambling
slide21

Gambling and Loss of Social Capital?

Social Capital is Already Declining…

So?

Casino Gambling Expedites the Loss