Legalized Gambling as a Strategy for Economic Development.

• Author: Miliken, Christine

A University of Massachusetts professor, Robert Goodman takes a dispassionate, analytical look at gambling as an industry and as a tool of state economic development.

His study shows there is "no popularly based" movement for the expansion of legalized gaming. The push, he says, comes from the industry and public officials worried about revenue shortfalls and the fear that neighboring states or Indian tribes will siphon off their gaming dollars.

Goodman's study shows there is a critical lack of objective research and knowledge about the real economic and social costs of gaming. He cites a study done a year after casinos and electronic gaming were legalized in Deadwood, S.D., that shows while "taxable retail sales remained the same overall, significant declines from selected activities such as clothing stores, recreation services, etc. were registered." Another study listed in his report found that the restaurant industry suffered a major loss (from 243 restaurants in 1977 to 146 in 1987) in Atlantic City due to the subsidizing of food and beverages within casinos.

Property values of surrounding communities were the subject of another Atlantic City study, noted by Goodman, that found that the growth in crime in the region reduced these values by $24 million for "easily accessible" communities and $11 million for "close" communities.

The Goodman report also analyzes 14 economic impact studies that he has chosen as the type most often used by public policymakers and the media to understand the impacts of legalized gaming. Goodman found that eight studies were "unbalanced," making no mention of the negative costs of...