Investigative Journalism

Casinos Wipe Out Local Music Theaters

Bringing casinos into a region severely hurts other cultural arts organizations. Unlike casinos, which thrive on gamblers, local arts and music theaters must make money on ticket sales. They sell tickets when they host popular shows. But popular musicians and comedians often end up playing at casinos, because casinos can pay them more. Casinos also set radius restrictions that ban performers from going to other nearby venues.

“It’s the fact that we can’t get the performer — that’s the problem,” said James D. O’Brien Jr., chairman of the Hanover Theater in Worcester, Massachusetts.

The Bushnell Center for the Performing Arts in Hartford, Connecticut — a 50-mile drive from Foxwoods and Mohegan Sun — provides a glimpse of what happens to theaters. The Bushnell used to attract dozens of pop and rock shows every year. Now, the theater is lucky to get six.

“When the casinos came, that really put the nail in our coffin,” said David Fay, the theater’s president and chief executive officer. “They absolutely take all of the major pop attractions. Luckily, we have not been challenged with Broadway products.”

The economic recession hit the Bushnell hard, eroding the theater’s endowment and leading to a loss of corporate donors. Those factors, combined with competition from casinos, have left the theater with a deficit of more than $1 million.

With casinos, theaters fear competition for big acts

 

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Gambling Limits Do Not Last

When riverboat gambling came to Iowa in 1991, limits were placed on the amount of money people could lose and gambling could only take place when boats were cruising along the river. By 1994, these betting ceilings had been removed, cruising requirements were relaxed, and land-based slot machine locations were legalized. Why is this important? Because it highlights that the predatory gambling industry constantly pushes past initial limits to expand its reach into citizens’ wallets.

Gambling Limits Do Not Last

CkirbyGambling Limits Do Not Last
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Horse Racing Remains a Dying Pastime

There has been many reports in recent years regarding the decline in the horse racing industry. In August 2011, the Associated Press released another story stating that there was “a generally unfavorable public view of racing, a long and frustrating learning curve for new bettors and increased competition from casinos and other forms of gambling as central to the sport’s decline.”

Report Finds Horse Racing Is On a Slippery Track

CkirbyHorse Racing Remains a Dying Pastime
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Predatory Gambling Interests Fund Their Own Science

This June 2008 piece from Salon.com delves into how the predatory gambling industry uses some of its huge profits to fund scientific studies. The industry took a lesson from the tobacco industry and decided it was not going to claim that gambling addiction did not exist. Instead, it set up its own research arm to publish favorable research. The American Gaming Association, the predatory gambling industry’s top lobbying group, created the National Center for Responsible Gaming (NCRG) in 1996 and casinos make it a point to keep it flush with money. Recently,

the NCRG announced $7.6 million in new funding commitments for the next five years, including $2 million from Harrah’s, $2 million from MGM Mirage and $1 million from International Game Technology, the largest slot machine manufacturer in the world. Its board of directors includes executives from MGM Mirage, Harrah’s and the casino company Boyd Gaming Corp., as well as Judy Patterson, executive director of the American Gaming Association.”

The NCRG’s research has a common theme: that addicts of every kind, whether they are dealing with gambling or illegal drugs, have a similar brain chemistry and the casinos are not at fault for their problem. There is little research into the addictive nature of slots and other electronic gambling machines and why people who play video machines seem to get addicted faster.

Gambling with Science

CkirbyPredatory Gambling Interests Fund Their Own Science
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Pennsylvania Casino Profiting from Underage Gamblers

Pennsylvania’s Rivers Casino was fined $150,000 in July 2011, partly due to incidents related to underage gambling occurring on the premises. Amazingly, the lawyer representing Rivers urged the state’s Gaming Control Board to “consider stronger penalties for the teenagers who try to illegally enter casinos, rather than only boosting fines for the gaming establishments.”

Rivers Casino Fined For Underage Gambling

CkirbyPennsylvania Casino Profiting from Underage Gamblers
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Illinois Casino Says “Members” Are 20% of Clientele, But Make Up 80% of Revenue

The predatory gambling industry does not always readily admit that the vast majority of their profits come from a small portion of their customers. However, in this article from the Chicago Tribune below, a casino marketing officer does just that. The reporter writes that “managers are…pushing casino membership, with special previews this weekend for VIPs and Des Plaines residents who were the first to join the club.” Typically, marketing officer Suzanne Trout said, members make up 20 percent of casino clientele but generate 80 percent of the revenue.” They know who the out-of-control gamblers are in their facilities.

Des Plaines Casino Goes Vegas to Corner Chicago Market

CkirbyIllinois Casino Says “Members” Are 20% of Clientele, But Make Up 80% of Revenue
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The Tobacco and Predatory Gambling Industries Partner Up (in Secret) to Make Huge Profits

In August 2011, the Reno News and Review publishing the article below detailing how two local Chambers of Commerce in Nevada served as front groups for an influential study that was secretly paid for by the tobacco industry. Since its publication in 1996, the study has been cited repeatedly by the predatory gambling industry in its argument to oppose smoking bans in casinos. It partnered with the tobacco industry to ensure that both would continue to make huge profits of the misfortunes of their customers. This information came to light with the recent publication of the book Casino Women by Susan Chandler and Jill B. Jones. 

Smoke and Mirrors – Big Tobacco and Big Casino Sold Nevadans a Bill of Goods

LesThe Tobacco and Predatory Gambling Industries Partner Up (in Secret) to Make Huge Profits
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The Criminalization of Slot Machines in the 20th Century Was Effective Policy

This TIME Magazine article from 1953 offers a glimpse at the period following World War II when states recriminalized slot machines. “Though the state legally controlled them, the slots acted, increasingly, like a virus in the body politic, dividing Idaho citizens against each other, changing the shape of towns, altering social life, wounding business and giving whole communities a surrealistic civic philosophy.” By legalizing slot machines, the government was still unable to control the negative impacts: restaurants, doctors, dentists and other local businesses began to go broke as a result of slot clubs siphoning patrons and their money away and “as a result, in rapid and indignant succession, Idaho’s bigger cities began banning slot machines.”

Time Article, “Idaho: Out, Damned Slot”

CkirbyThe Criminalization of Slot Machines in the 20th Century Was Effective Policy
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The Link Between Crime and Gambling Addiction

This article from the Pittsburgh Tribune-Review explores the connection between gambling addiction and criminal activity. Because gamblers are allowed to lose such large sums of money in such a short period of time, some turn to stealing to help fuel their addiction and chase their losses. Generally, these are law-abiding citizens who would otherwise never commit crimes.

Gambling Addiction Leads Many Down Criminal Road

CkirbyThe Link Between Crime and Gambling Addiction
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Australia Attempting to End Electronic Gambling Machine Tricks

Australia Senator Nick Xenophon is trying to stop certain features of electronic gambling machines (or “pokies” as they are known in that country) that trick players into thinking they have won, when they really have lost. Senator Xenophon is also requesting that the industry release machine probability accounting reports.

Call to Stop Pokie Machine Tricks

CkirbyAustralia Attempting to End Electronic Gambling Machine Tricks
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