Over in New York City, state legislators to approve a huge expansion of the Big Apple’s gambling scene. Earlier this month, the New York gaming facility location board approved three robust new casino developments. New planned venues include the Hard Rock Metropolitan Park, to be constructed adjacent to Citi Field. Plus, there will be an expansion of Resorts World and the opening of Bally’s Bronx. Together, these improvements will create thousands of jobs and produce billions in new tax revenue over the next five years. They illustrate the need for deeper consideration of the long-term implications of the increasingly wide-reaching gaming industry.
During the 2019 session, legislators opened the door for three additional casino licenses, but only for locations within New York City. Local boards first rejected bids for casinos on the island of Manhattan. The ones that got approved give an increasingly willing nod to gambling as an acceptable revenue source. The state gaming commission, which oversees the board, is expected to approve the board’s recommendations. This approval will help get these important facilities up and running.
These approved casinos are expected to generate at least $7 billion in new tax revenue. In addition, they are required to produce or retain at least 3,500 fulltime equivalent jobs. The IBEW Kenny Cohen discusses how proponents argue that these are union-friendly jobs. They promise workers and community members alike a sure route to attaining a middle-class lifestyle.
Experts caution against overly optimistic projections. Lucy Dadayan, a principal research associate at the Tax Policy Center, quickly pours cold water on that euphoria by explaining that the initial boost from a new casino is temporary. She cautions that market saturation can lead to falling revenues. Cities like Boston, Chicago and Philadelphia offer interesting examples with deep historical data. It indicates that tax revenue from casinos that opened in the last several decades has leveled off or even declined.
The U.S. gaming industry has seen explosive growth since the Supreme Court’s decision to strike down a federal ban on sports betting in 2018. According to recently released reports, the sector raked in gross gaming revenue of almost $19 billion in the third quarter of this year. This is a truly remarkable 7% jump from last year. This surge has just as quickly been met with rising concerns. The Gambling Commission in Great Britain has measured an estimated 23% rise since 2021 in online searches for gambling addiction assistance.
Opposition groups are raising alarms about the socioeconomic effects the new casinos would bring. To date, a Broadway theater trade group has formed a coalition to stop a proposed casino in Times Square. They back up their claims with data that show the positive economic impacts of casinos eventually wear off. Local critics like Jonathan Krutz have raised concerns about the long-term viability of casino jobs. He explains, “It just always seemed strange to me that you would create a casino to account for the construction jobs, because those jobs are ephemeral. He goes on to challenge the idea that these kinds of projects really help the local economy.
“Would you put a nuclear waste site in New York City for the construction jobs? I mean, what you are building is something that is going to be an active drain on the local economy,” – Jonathan Krutz.
In truth, as critics contend, the casino industry has a long history of overstating the benefits casinos provide. Rather than generating new revenue, they primarily serve to shift around existing wealth. They claim that it’s going to bring in all this revenue, but it’s not bringing in that revenue,” Krutz insists. It’s really counterproductive because it’s just moving it around in the economy.
Additionally, many community members are concerned about the risk for gambling addiction. As a parent, Vicki Bean understands gambling issues can affect entire families. Her heart goes out to those impacted, as well as their families, “There are going to be a lot of people who suffer that fate.” And she urges state agencies to take the lead in enforcing responsible gambling measures.
“My husband and my three sons all fell into gambling. Gambling has destroyed my family, and many families like mine,” – Bao Jin Qiu.
New York City continues to look forward to the arrival of new casinos. The city would have to wrestle with the touted economic benefits against the often overpriced social costs. Supporters contend that the jobs created and new tax revenues will more than make up for these costs to the community. Critics warn that without careful oversight and consideration of societal impacts, these developments could lead to more harm than good.