I lived in Oklahoma, and while I loved Tulsa, I must admit the three casinos - RiverSpirit, Osage Casino, and HardRock didn't put the city in the best light. Living in the area provided me with a great research project for a class on Community Change through Kansas State University. I used a bit of that research knowledge to deep-dive into the negative economic impact that a casino will have in New Haven, the rest of Allen County, and even the region. Here are three reasons to encourage local and state leaders to vote "No."
1. A casino in a town raises childhood and lifelong poverty levels. Using pre-and-post Census data, (census.gov) every Hoosier town that has approved a casino in Indiana has seen its childhood poverty rate increase from a range between 135% to 900%. New Haven's current childhood poverty rate is 10%—a decade after the casino was built, it stands to be at 13.5% and 40%. An increase in childhood poverty increases the amount of taxes needed for childhood health, food insecurity, and educational support. Using PolicyMap, less than 20% of New Haven's children born into poverty can overcome their circumstances and live poverty-free as adults.
2. Casinos cannibalize nearby retail and restaurant employment (Kurtz, 2022). The result will be a 32% decline in sales tax revenue (Hicks, 2019). Unfortunately, Indiana's Tax Commission does not post sales tax collections per city/town, so I used information from Oklahoma and came up with a similar city in terms of population, income, and retail activity. NH's sales tax revenue would decrease by $2,000,000 a year.
3. Casinos don't create new jobs (Hicks, 2019). In Shelbyville, there has been a decline of 1,000 employed individuals since Horseshoe Casino opened. In Anderson, there has been a decline of 2,000 working individuals since Harrah's opened in town. In New Haven, if 1,000 individuals stop working there would be a loss of LOIT estimated at $500,000.
According to the Indiana Gaming Commission, Full Sail Group's Rising Sun Casino contributes 2.4M in yearly taxes. Even if this rate of revenue triples if they moved the casino location to Allen County, the costs of child poverty, lost sales tax revenue, and job loss will outweigh the positive. My figures don't include the amount of homelessness, bankruptcy, domestic violence, suicides, lower college attendance rates, and other social issues that will cost taxpayers tens of millions of dollars.
Furthermore, Indiana loves gaming revenue as a substitute for other forms of taxes, education funding has continued to rapidly decline. Indiana is now 35th in the nation for pre-k - college funding and has one of the lowest rates of high school graduates pursuing higher education institutions (Lowery, 2022) while ranking 17th in the number of casinos. Simply, the more in-state gambling the lower the education funding and outcomes. Indiana's decline continues.
- Indiana Chamber of Commerce
- NEI
Proposed New Haven Casino has new site: https://lnkd.in/eGNbK4TH
Design plans for the casino are expected for release next week, but earlier in the process Full House said the site will include a 200-room luxury hotel, a spa, upscale dining and multiple entertainment purposes.