HARTFORD, Conn. (WTIC) – The Coalition Against Gambling Expansion in Connecticut held a forum at the State Capitol to discuss the economic and social impact of expanded gambling in the State.
Tuesday’s timely forum highlighted the possible effects of several bills currently before the Legislature that would expand and increase gambling in Connecticut. Those bills range from authorizing sports/Internet betting, establishing a bidding process for a Bridgeport casino and enabling the lottery to offer new forms of betting.
State Representatives Anne Hughes and Jill Barry organized the forum with the Coalition, which consists of 14 non-partisan, faith based groups with more than one million members in Connecticut.
“Unfortunately the gambling industry is specifically designed in many respects to prey on those most vulnerable,” said Representative Hughes. “So as a social worker who’s dealing first hand with the most vulnerable in Bridgeport, I’m very concerned about casino expansion in Bridgeport.”
Former Congressman, businessman and author Bob Steele also spoke at the event, as he highlighted the concerns associated with rushing to expand gambling in Connecticut. Those concerns stem from extensive independent research that provides information previously unavailable.
Adding to the Coalition’s concern includes a bill requiring Connecticut to conduct a new study of gambling’s social and economic impact on Connecticut and its residents.
“Unfortunately, however, as things are set up at the moment that study wouldn’t be ready until 2020,” said Steele. “Which means that it would be of no use whatsoever in helping legislators how to decide on the current expansion bills.”
The last Connecticut gambling study took place in 2008 and since then, gambling has increased dramatically across the state and the region.
Steele highlighted a landmark, comprehensive report titled “Why Casinos Matter” where an independent group of 33 scholars and civic leaders assembled by the Institute of American Values gathered new information that raises serious concerns.
The study’s findings show that today’s casinos have computerized slot machines that are more addictive and cater to “low” to “middle rollers”. Typically, slot machines generate around 80% of the casino’s gambling revenue.
Those slot machines are subject to the state’s tax rate, however, table games are not.
“Connecticut has proposed a 25% tax rate for commercial casinos,” said Steele. “But currently the Foxwoods and Mohegan Sun Casinos are taxed at an effective rate of 16.6% because although they are full service casinos with both table games and slots, the table games aren’t taxed.”
The former Congressman also noted the study, and a dozen others like it, showed that 40 to 60 percent of slot machine revenue comes from problem and pathological gamblers.
“Meaning that the industry’s business model is heavily dependent upon preying on people with varying levels of gambling addiction,” said Steele. “Roughly half the money that governments, such as the state of Connecticut obtains from slots comes from exploiting these vulnerable individuals.”
Research has also shown that overall quality of life decreases with casinos, including economic problems for nearby towns and residents over time.
“Government sponsored gambling constitutes a regressive tax on low income people and contributes to poverty and economic inequality – supposedly one of the biggest problems in our country today, but you’d certainly never know it given the continued expansion of legalized gambling,” said Steele.
Overall, Steele provided several findings from research studies over the years, which raise concerns and a need for more independent research on expanded gambling.
“Given the amount of new information we now have, our coalition strongly believes that there are numerous critical questions that need to be explored before Connecticut can make a wise decision about moving forward with gambling expansion,” said Steele. “Our State Government has never done a full cost benefit study of legalized gambling in Connecticut. And the fact is, it has absolutely no idea of the cost benefit ratio of the various gambling proposals currently under consideration.”
Moving forward, the Coalition urges the Legislature to pause any vote on the proposed gambling expansion bills noting there is “no rush.”
Steele also spoke on the importance of a true independent study because previous research studies conducted by paid consultants working for the casinos push a narrative, rather than find any prudent information.
“These bills may come up during this session or during another extended, special session or maybe even next year,” said Steele. “I think we’re at a perfect point in Connecticut to pause. Let this study go through, let’s do this study, let’s do it right and see what it says. And then see what our Representatives and Senators would like to do about gambling expansion.”
Ultimately, Steele said the best way to make your opinion heard or known about a possible gambling expansion in Connecticut moving forward is to contact your local State Senator or Representative.
