Racino Gambling: Protected Monopoly?
Talk about unilateral disarmament!
Today’s News-Journal reports that the Delaware General Assembly is already folding its hand on expansion of casino gambling, and will today consider legislation limiting any expansion to the three existing horse-track (and horsebleep) locations.
Now, the Beast Who Slumbers can well understand arguments against the expansion of casino gambling, and considers them legitimate reasons to oppose expansion. But protecting a special monopoly is not one of them. The ‘spontaneous’ demonstrations against expanding the number of sites are, in fact, being orchestrated by the facilities that control 100% of Delaware’s existing gambling sites:
The committee, which met in Georgetown on Monday, was greeted by a full house at the Delaware Technical & Community College Owens Campus auditorium. The crowd spilled into the hallways and stood in the back of the room once all the seats were taken.
Just as they did in previous hearings, groups of casino workers car-pooled, arrived in buses and carried protest signs against any major expansion of gambling.
While many of the workers said they support table gaming and sports betting, they did not favor adding additional gambling venues in the state.
Now, ‘bulo likes to think of himself as a logical person. But here’s where he’s having a difficult time understanding the logic of gaming workers opposed to expansion. They have stated that they fear losing their jobs if new facilities are allowed to open. ‘Bulo invites any of those protesters to respond to this thread by explaining how expanding the number of gaming industry jobs by the thousands will threaten their jobs. Might there be some migration of workers to other venues? Yes. But there will be an increase in jobs, and those currently working in the industry will be in high demand.
The explanation is simple: the workers are in the uncomfortable position of being ‘encouraged’ (i. e. coerced) by their employers to oppose this. Does anyone think that the workers themselves are renting the buses to come to these hearings? ‘Bulo invites any of the racino executives to come on here and prove him wrong.
Of course, the lemmings in the Delaware General Assembly scurrying for cover have never been considered candidates for ‘Profiles in Courage’. And, of course, some of the state’s most powerful legislators have their own reasons to kill expanded gambling in the crib. Uncle Thurm, with his ties to the Delaware State Fair and Harrington Raceway (a News-Journal story waiting to happen), is doing what he always does. Speaker Bob Gilligan is once again carrying water for Delaware Park. And powerful Rethug Bill Oberle is a horseman and in thrall to the horsemen’s industry.
But that is no excuse for the supposedly more forward-thinking General Assembly members to tear up their tickets like this. And it is no excuse for the Governor’s office to seemingly backtrack so soon on this either.
Someone needs to lay down a marker and bet that expanding the number of sites will increase jobs, improve what passes for ‘customer service’ at the existing locations, and will generate tax revenues. For once, publicly call out the slimy special interests shamelessly hiding behind their employees. Either that or accept the argument of principled opponents and sunset the existing sites. But protecting an existing monopoly controlled by the worst that the Delaware Way has to offer is a losing bet.
The Dennis McGlynn/Michelle Rollins checkbook protection act will not go down without a fight.
This is disgusting, but I guess I shouldn’t be surprised. The racinos benefit under the current system so they don’t want anything to change.
Gambling was long associated with horse racing. That sport has had its share of scandal but there has been a great deal of effective self-policing.
Gambling has had a corrupting influence in sports where it was not a traditional element. The worst domestic episode was the fixing of a World Series by a mobster. The harsh treatment of Mr. Rose may have been an overreaction. Had he bet against his own team there might have been justification for his treatment.
We still have allegations of ‘points shaving’.
How many ‘pools’ are run by mobs? They are not in the business of losing money and will do what they can to assure the desired outcome.
Sports betting may be a ‘soak the poor’ tax that Markell and friends see as a band-aid but perhaps real fiscal discipline would do wonders. Markell made out well as a corporate hustler but will he govern any better than Ruth? Will the people of Delaware make out any better than a lot of stockholders?
but perhaps real fiscal discipline would do wonders.
I hear this alot. What I don’t hear are any suggestions for which taxes should be raised, which services that should be cut and people who should be fired.
Check that. The state employees at last night’s meeting seem to be unified in their calls for a state sales tax.
I hear this alot. What I don’t hear are any suggestions for which taxes should be raised, which services that should be cut and people who should be fired.
Well, it would help is the government was transparent enough to be able to make these decisions. Looking through the budget bills in their current state makes it nearly impossible to discern what goes where.
People bet on sports everyday so why shouldn’t the state get a cut
Sales tax is a killer. I work in retail and sometimes ask customers if they would come down from Pa. or Jersey if we had one, even if it was half of what their states have. The answer is no. If someone is coming from King of Prussia to spend $1000 at Target and Best Buy, it’s worth the drive because they’re saving $60-70. They might spend that extra money on lunch at Applebees. If the savings is only $30, they’re more likely to shop closer to home and save the money they’d spend in gas.
My bet on what would happen is that sales would drop, particularly along Concord Pike, with stores closing or cutting employee hours. A sales tax might hurt more than help.
Looking through the budget bills in their current state makes it nearly impossible to discern what goes where.
This isn’t an especially good excuse for not trying. You can come up with a budget in the same detail as the State’s budget is presented. And you can assume that the funds budgeted in the prior year were spent in that prior year. I assume that the State of Delaware has the same use it or lose it criteria that lots of other places do. Assume that the money got spent at the prior year’s authorization level and present your own budget. The Administration and the GA will at least have to tell you why your assumptions are wrong.
That said, I think that it would be incredibly stupid for the GA to remove the possibility of any venue expansion from the table. Even if those in Dover now have no intention of approving expansion, I think that the possibility of expansion would be an awfully good card to have — ready to play — in future.
Once again someone raises the absurd claim that people will shop here at 0% sales tax but wouldn’t at 2% or 3%, accompanied by the even more absurd claim that job losses would negate the money raised through sales taxes (estimated revenue to the state is about $45 million per percentage point, as best I can tell from published discussions of the issue).
There is no proof of any of this. It would be fairly easy to figure out how much out-of-staters spend here. Again, I suggest that the otherwise useless cabal of conservative economists in the employ of the University of Delaware — thanks, Pete du Pont! — get up off their overfed butts and do some freaking research.
Ah, the joys of Art Downs, to wit:
“Gambling has had a corrupting influence in sports where it was not a traditional element.”
To which I respond, so what? What do I care whether or not sports is corrupt? What do “clean” sports bring to the state’s bottom line?
I understand why the NFL cares, but there’s no rational reason for me — or the state of Delaware — to give a rat’s ass.
Once again someone raises the absurd claim that people will shop here at 0% sales tax but wouldn’t at 2% or 3%…
And your equally unqualified claim is any less absurd? Another Mike claims to actually have spoken to out-of-state consumers, take it up with him. While I was growing up in Edgemoor and worked at Friendly’s in Concord Mall for several years, it was very common to have that same conversation with older (at that time…I am that age now) customers…about how they enjoyed coming over state lines to PAY LESS here than up there (in PA). Do I have scientific evidence? Of course not, and you know that, which is why your argument in return is an impossible one, but I do have those many conversations that stuck with me. I know they aren’t tangible to you, but to me, and others like me, they are.
BTW, I believe (but not certain), that technically, an out-of-state person is supposed to be charged their state’s sales tax on eligible purchases (hence why MD and PA car dealerships waive sales tax to DE consumers, because they do not have to charge that tax and it’s really a faux-incentive) and that collected tax is to be paid over to that home state. If not, the consumer has the onus on them to report and pay that tax later. It is a terribly tedious task to track and administer such a third-party type of system, which goes to answer your claim of how “easy” it would be to determine real numbers.
Oh, and on the gambling…I say bring it. I don’t agree with all the needed venues over such a small geography, but otherwise, not an opponent.
As far as any venue outside of the current racinos, don’t count out the riverfront. Just wait and see. Why do you think something Baker was so pro-vocal about in the past has suddenly become so silent on the near-eve of its best probability ever?