To increase revenue, Roanoke’s city leaders have hit upon a popular problematic plan. They are considering bringing a casino to town, to be established at the Berglund Center.
There is no question tat casinos have brought economic benefits to some communities, just as there is no question that problem gambling has imposed economic and social costs.
City leaders want the casino, but there is considerable opposition. Some community residents opposed it at a city council meeting.
“I believe that many of us are concerned it will lead to the reallocation of fund, taking away monies from local businesses and restaurants, also a measurable increase in crime, which is a nationwide statistic,” said one resident.
Even a former mayor, Ralph Smith, is against it. “Let’s figure out how to be more efficient and find new business for the Civic Center without this idea. Don’t put Roanoke on the list of troubled cities in Virginia,” Smith suggested to the city council.
What is the effect of casinos on local communities? Proponents of casinos point to increased revenue and increased economic development. Opponents list increase in crime, pathological gambling, and associated costs.
Undoubtedly, there are increases in tax revenue from casinos; however, tax revenue is usually transferable. Most states tax casino revenue and use the proceeds to fund state and local programs, often education. However, that does not necessarily mean that education funding is increased. All earmarked revenue in interchangeable. The legislature can decrease the amount of funds earmarked for, say, education, by the amount of the casino tax revenue and use those funds elsewhere.
The question of whether casinos help or hurt local retail sales depends on whether most casino visitors come from outside the area or from within. The same hold true for increased employment, whether employees are imported for their skills or are local.
Casinos are known to have negative effects on communities, with economic cost. These issues include addressing and mitigating the increase in crime, increased bankruptcy rates, suicides and attempted suicides, increased social services, and increased family costs. This is why many people oppose casinos in their communities.
The negatives costs can be substantial. One study found that for every $1 in tax revenue, the costs of gambling range from $3 to $12. Another student showed that the costs of hosting a casino in a community outweighed the benefits by a ratio between 4 to 1 and 6 to 1.
“To qualify under state law, a Roanoke casino plan must be introduced as legislation into the Virginia General Assembly for approval to be added to the state list of eligible casino cities. The bill must pass both houses and signed by the governor before heading to the election ballot for Roanoke voters to approve or disapprove.”
The casino project faces significant hurdles. In addition to opposition from concerned citizens, the three legislators who represent all or part of Roanoke – Democrat Sam Rasoul, Republican Joe McNamara, and Republican David Suetterlein – have announced their opposition.
State Sen. Chris Head,
R-Botetourt County, who formerly represented part of the city and who sits on the Senate committee that would take up any casino legislation: “I am complete and totally opposed to a casino coming to Roanoke and I will oppose it viscerally and vehemently with every fiber of my being. This would be a disaster for our great city. I want nothing to with a casino in Roanoke. I will work with everything I’ve got to make sure this doesn’t happen.”
Benefits versus cost is the key issue here. While many social costs can be quantified economically, doing so is problematic. However, many would argue that if it is questionable whether benefits outweigh the costs, then the costs are too high and casinos should be avoided.
