Las Vegas Sun

March 29, 2024

Foes square off over casino acceptance study

While the gaming industry is hailing the results of a new study showing that casino gambling is now more widely accepted by mainstream America than ever before, gambling foes say the results aren't telling the whole truth about an industry that has lost a series of major battles this year to legalize commercial gambling nationwide.

The vast majority of Americans now accept casino gambling as a form of entertainment, a reflection of gambling's pervasiveness as well as the contributions casinos have made to the U.S. economy, the American Gaming Association, the industry's chief lobbying group, concluded in a survey released Monday as part of the industry's annual State of the States report.

Some 85 percent of Americans view casino gambling as an acceptable activity for themselves or others, up from 79 percent last year, according to results from a survey conducted by independent pollsters Peter D. Hart Research Associates and the Luntz Research Cos.

While 57 percent of respondents said casino gambling is "perfectly acceptable for anyone," 28 percent said it isn't acceptable for them but is "acceptable for others."

Only 16 percent said it wasn't acceptable, consistent with previous years.

The data "serves to quantify our long-held assumption that the more familiar people are with the casino industry, the more likely they are to embrace and support it," AGA Chief Executive Officer Frank Fahrenkopf Jr. said in a statement. That younger Americans are most accepting of gambling "validates their belief that not only are casinos a fun place to 'get away' but also a source of jobs and economic growth in many communities," he said.

The survey coincides with polls conducted by casino operator Harrah's Entertainment Inc. Similar to the AGA survey, research by Harrah's has shown that younger generations of Americans are especially accepting of gambling as entertainment.

The results come amid criticism by anti-gambling groups that the casino industry -- for all its financial might and political muscle -- has lost what should have been an easier political fight this year to legalize more gambling outlets as a way to help raise needed tax dollars.

Not one of the 27 or so states that seriously considered some form of gambling this year have so far turned to legalization, said Tom Grey, executive director of the National Coalition Against Legalized Gambling.

"I thought we were going to get run over this year and instead (casinos) are going to get shut out," Grey said.

"If (gambling) is entertainment like shopping or the movies and it's in 48 states -- with states having dire budget problems and 85 percent acceptance of gambling -- why isn't the product flying off the shelves?" he said.

Most Americans would preserve people's right to choose what they do with their money, Grey said. But that doesn't mean they want casinos nearby, he said.

"The fight has never been about whether or not people accept gambling. It's whether it should be on Main Street. I don't think (casinos) have won that battle."

Those who oppose gambling remain a small minority who are primarily motivated by strong religious or moral beliefs, Fahrenkopf said.

"We understand their views, we respect their views but we don't agree," he said.

Legalized gambling is now offered in all but three states, an indication that the casino business is far from being "shut out," he said.

"What each state is facing is whether or not to add some other type of gambling to what they already have," he said. "It's not a question of rejecting gambling."

A recent vote of confidence for gambling happened in Iowa last fall when residents in that state voted overwhelmingly to keep the state's casinos, he added.

Iowa law requires counties in that state to vote every eight years on whether to keep or reject gambling.

The social costs of gambling, which has been linked to bankruptcies and thefts, is receiving greater scrutiny as states consider whether to allow slot machines and casinos, Grey said.

"State governments see (casinos) as a product to tax," he said. "But it's not an automatic decision." Casinos haven't convinced states that "every state that wants them should be able to have them," he said.

The failure of dozens of gambling initiatives this year can be more attributed to ill-crafted legislation rather than forceful opposition, said Bill Eadington, director of the Institute for Gambling and Commercial Gaming at the University of Nevada, Reno.

Much of that legislation died under its own weight as states aimed to extract as much tax money as possible from operators without much thought about whether gambling would make sense financially, he said. Some plans also grew increasingly complicated, sparking conflict between gambling operators, he said.

As with a variety of political issues, people are fairly apathetic about issues that don't directly affect them, he said.

Californians three years ago approved a provision allowing Las Vegas-style tribal casinos. But many state residents are now crying foul over local projects that threaten to clog traffic or otherwise hurt their quality of life, for example, he said.

Gambling opponents are influential despite their relatively small numbers because they are strongly committed to their views, he said. Those who don't have a problem with gambling, on the other hand, aren't necessarily committed to their positions, he added.

"I think most people don't care one way or the other," he said. As gambling becomes more prevalent, "it becomes less and less important."

Grey, a United Methodist minister, disagrees.

"If we polled Americans right now about whether they feel they have enough gambling, I guarantee we'd win."

Grey cited as evidence a Chicago Tribune poll last week in which a majority of voters rejected proposals for a Chicago casino as well as plans for more riverboat casinos and video poker machines in bars and restaurants.

"Why are they opposed to it? Because they've seen enough," Grey said.

Illinois Gov. Rod Blagojevich last week signed the nation's largest casino taxes into law, including a 70 percent tax on the state's biggest gambling boats.

In the AGA survey, young adults ages 21 to 39 were the most accepting of gambling, with 91 percent approving of casino gambling for themselves or others. That compares to 81 percent of Americans over 50 who shared that view.

While 54 percent said they would favor the introduction of casino gambling in their area because of its economic benefits, 42 percent disagreed, the survey said. A higher percentage, 62 percent, said casinos bring "widespread economic benefits" to other industries and businesses nearby. That was in line with last year's figure. On the other hand, 33 percent said they disagreed with that view, up from 29 percent the previous year.

More than 51 million people -- roughly one-quarter of the nation's over-21 population -- visited a casino in 2002 for a total of 297 million visits. Last year witnessed about 2 million fewer gamblers than 2001, a decline attributed to the weak economy, the AGA said. Still, more people went to casinos than visited other popular attractions such as zoos or major league baseball games.

The nation's 432 commercial casinos in 11 states generated gambling revenue of $26.5 billion last year, a 3 percent increase from 2001. That compares to industry figures such as $9.5 million spent on going to the movies, $20.6 million spent on videos and DVDs and $24 million Americans spent on cosmetics and toiletries last year, the study said.

"This sustained growth illustrates that, despite more difficult economic times, consumers remain willing to spend their hard-earned dollars on entertainment options and a fun night out," the AGA said.

Casinos also paid $4 billion in gaming taxes, employed more than 350,000 people and paid out nearly $10 billion in wages last year.

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