Patton's casino proposal sparks debate
From Kentucky Citizen Digest, July, 1999

The war over Gov. Paul Patton’s proposal to expand gambling throughout the state continues to rage and threatens to escalate as more people examine its ramifications. Patton, who said he has not yet decided what gambling venture would be right for Kentucky, has suggested opening 12 to 14 state-run casinos.

Debate began immediately after Patton made his proposal. National anti-gambling leaders were incredulous that a state government would be intimately involved in casino gambling. Mike Bowman, director of state and local affairs for the Washington-based Family Research Council, said, “The concept of state-owned casinos is a new and dangerous proposal. It fosters a natural conflict of interest for elected government officials between their state economic interest and their newfound interest in the gambling industry.The welfare of Kentucky citizens is caught in between.”              

Nationally, gambling opponents have pointed out that campaign finance is already being questioned. How much more will it need to be scrutinized with the addition of large sums of gambling money?

Some Kentucky religious leaders have begun establishing a formal coalition that opposes any gambling expansion. The group is made up of a wide variety of organizations, encompassing both liberal and conservative viewpoints.

Members include In spite of the varying positions its individual components have on gambling, members have united to oppose expansion.

The Rev. Nancy Jo Kemper, executive director of the Kentucky Council of Churches, has emerged as one of the spokespersons for the group and is convening the gatherings. “He [Patton] has thought this out very carefully. ... It sounds like wide-open, hard-core gambling to me,” Kemper stated. “In Kentucky, we really do want government of, for and by the people — not government by lobbyists for the gambling companies.”

Kemper, who was a guest on KET’s Kentucky Tonight May 17, suggested that legislators be more creative in raising revenues, perhaps by revising the state’s system of taxation.She stated that the system puts a heavy burden on the working poor. “Now we’re proposing to fleece them,” she said.Studies show that gambling has a particularly negative economic effect in poorer communities.

“This is a form of involuntary taxation,” Kemper said.“Studies show that people spend $89 at an average casino trip and get back only $32.”She also pointed out that Kentucky saw a surplus of more than $220 million last year.

In an April essay addressed to Kentucky legislators, entitled “Congregate Gaming in Kentucky,” Patton suggested that the money earned from the gaming industry could be used to “purchase development rights on farmland or purchase outright other valuable and threatened natural areas.This fund would also be used to revitalize our towns and cities and remove urban blight.”Patton also stated that the earnings could be a “dedicated source of revenue” to give the horseracing industry a boost.

“I see absolutely no other source of revenue” other than casino gambling to accomplish these goals, he said.These land-based casinos, Patton claimed, could generate a possible $200 to $300 million dollars for the state.

Tom Grey, executive director of the National Coalition Against Legalized Gambling, said gambling proponents often argue that gambling expansion would create more jobs, earn money and boost the economy.However, according to Grey, the actual results of gambling include increased crime and corruption, addiction and bankruptcies.“Our government, to keep Kentucky from being financially mugged at the Indiana riverboats, proposes doing it in Kentucky,” he said.

Most politicians agree that a move toward casino gambling would require a constitutional amendment, necessitating a 3/5 vote in both the Senate and the House and approval of voters statewide. However, Patton has also put forth ideas concerning lottery-owned slot machines known as video lottery terminals (VLTs). The Lottery Corporation may be able to include VLTs in its games without a constitutional amendment.

Ironically, Patton released his proposal near the time the National Gambling Impact Study Commission called for a pause in further gambling expansion — a challenge for policy makers and the public to further evaluate gambling’s implications.The commission said that some areas might want to issue an explicit moratorium on gambling expansion until more research is done.

It is not clear exactly how Patton plans to earn the $200 to $300 million he has predicted. Admittedly, he is still seeking some answers, including details on how the sites would be regulated.In his essay the governor commented, “The adverse social impact of gaming is well known. ... The legislature and the citizens of Kentucky need to make a rational decision based on the facts.” The fact is — according to a broad spectrum of organizations, researchers and leaders — that this is one gamble Kentucky can’t afford to make.
 

Key Family Foundation Contacts: Kent Ostrander, Executive Director Martin Cothran, Senior Associate Policy Analyst