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Joyce Clark Unfiltered

For "the rest of the story"

Since the Tohono O’odham announced its 2009 plan to put a casino within Glendale on a county island I have done a great deal of research on the effects of a casino. In 2010 I found a series of columns from April and May, 2010 written by Jim Marino, Guest Columnist for the Santa Ynez Valley Journal, California. His findings are stark and troubling and so eerily similar to the findings of others that I wanted to share quotes from his series. My comments, relating to Glendale, follow the quote in red.

casino 1“These casinos were thrust into communities under the claim the federal Indian Gambling Act [I.G.R.A.] and the state compacts made them a “done deal” and the local communities had nothing to say about it.”

I.G.R.A. when all is said and done may be the nail in Glendale’s coffin.

“But if they didn’t oppose them, these local communities might get some of the gambling dollars in lieu of the many taxes local and state government could not collect. If the local government did not cooperate, on the other hand, they would get no money and often would be accused of being anti-Indian racists and insensitive to the plight of “Indians” in America. After wielding this political stick, these gambling investors and tribes would then wave the carrot, telling local government they would create “jobs” and thus be a great benefit to the community.”

I have been accused of being an anti-Indian racist insensitive to the treatment of Native Americans at the hands of the White Man because I have voiced my opposition to a casino within Glendale’s borders. Does any of this sound familiar? When all else fails to persuade use the promise of jobs.

“The tremendous costs of providing public services like police, fire, schools, jails, hospitals, public works, social services, etc., used regularly by Indian casinos and related businesses, and the demands placed on infrastructure like roads, bridges, public buildings, and other facilities, are all paid for by the non-Indian taxpayers because these tribal businesses are exempt from property taxes, bed taxes, sales taxes, personal property taxes, corporate taxes and state income taxes among others.”

Fact. City staff reported long ago that Glendale taxpayers would pick up the cost of another water treatment plant specifically needed to handle the increased demand that would occur because of the casino.

roads 2“The amount of money that trickles down into the local economy from the salaries of employees and the costs of goods and services is nowhere near enough to make up for lost tax revenues or to pay the tribe’s fair share of the costs to the community for increased demands on public services and infrastructure. Neither are the occasional gifts tribes like the Chumash make usually to the police or fire agencies which gifts are often less than the $2 million the tribe still receives in federal welfare and grant monies every year. “

8% of specified gaming revenues are required by law to be granted by the Tribes to non-profit organizations. Even if every dollar of that 8% could go to Glendale it would not meet the costs Glendale taxpayers will have to bear to support this casino.

“Another economic myth is that by calling the casino a “resort” it will somehow become a destination location for tourists. This myth is debunked by several studies showing the vast majority of gamblers come from a one- to two-hour drive or fewer than 50 miles and come to gamble only.”

This fact is borne out by many other studies. It also explains why the Tohono O’odham, upon their consultant’s advice, rejected the possibility of a casino in Buckeye.

gambling 1“Therefore, an Indian casino essentially siphons dollars from the immediate surroundings. Those are dollars and local monies not spent in other non-Indian businesses and entertainment venues where such discretionary income would otherwise be spent. Non-Indian businesses nearby often cannot compete with an Indian business that pays no taxes, is exempt from state and local laws, rules and regulations workers compensation and public liability insurance and cannot be sued for any of its misdeeds, no matter how outrageous they may be.”

Many have said that the casino will take business away from the hotels and restaurants in Westgate. Right now there is a television ad running for Fort McDowell Casino that offers a $7.99 prime rib dinner on Tuesday nights. There is no way a Yard House, Margaritaville or Gordon Biersch could compete with gambling subsidized meals offered at a casino.

construction“One of the common methods that gambling promoters and investors, using an “Indian tribe” as a front to introduce gambling casinos into a community, is the promise of “jobs.” Often they target communities that are economically depressed because they know local government, unions, Chambers of Commerce, businesses and others often jump at the chance for anything that creates ‘jobs’.”

The TO has done exactly that-with the promise of jobs in Glendale as a means of mitigating its current financial difficulties. It is a siren song the TO hope will not be ignored and uses consistently to gain support among the general public for its proposal.

RoveyFarmEstates“There are casinos that have ruined entire residential neighborhoods like the San Manuel Casino rising above single-family homes in a housing tract, which homes then lost most of their value because of the nearby gambling operations. Neighbors complained about noise, traffic, drunkenness, open drug trafficking and even having to pick up beer cans and used hypodermic needles from their front lawns.”

There are nearly 10,000 people living in the immediate vicinity of the proposed casino with over 600 apartment units immediately south and over 900 homes immediately east. Their property values are in jeopardy.

contract“ People who dealt with or entered into contracts with these casino tribes and businesses found out that if the tribe stiffed them for the bill, they could not sue, again based on the court-created doctrine of legal immunity for Indian tribes and their businesses discussed in last week’s article.”

Based upon the manner in which the TO purchased the land secretly and then held it for 6 years, I would be reluctant to trust any relationship with them. Add to that the fact that the TO’s sister tribes feel betrayed by the TO’s denial of a seven casino limit in the Phoenix Metro area as promised with the voter approved Gaming Compact.

“This use of the tribal legal immunity doctrine to evade legal responsibility is one of the most flagrant and outrageous impacts of Indian gambling and business expansion. This doctrine is exacerbated by the fact that these tribes, their casinos and businesses, can also operate outside of all state and local laws (except alcohol-control law). Laws that were enacted over many years to protect customers, workers, the environment and quality of life.”

In Arizona the only control over Tribal casinos is the state’s Gambling agency.

crime 1“Virtually every casino community has now experienced increases in crime ranging from shoot-outs, murder, theft, robbery, embezzlement, gang activity, substance abuse and drug trafficking, drunk driving, auto accidents and fatalities, gambling addictions, credit problems and bankruptcies, family neglect, even suicides, and the list goes on. Recently, Highway 154 ominously being called “the Chumash Highway” has experienced several auto accident fatalities, not to mention the officially unexplained suicide jumpers from the Cold Springs Canyon bridge. Only a few weeks ago, a gang shoot-out erupted amongst the slot machines at the Jackson Rancheria casino located in Amador County.”

While these experiences occurred in California, there is the common thread of increased crime resulting from casinos.

“Not long ago, Sheriffs deputies were involved in a running gun battle outside the Soboba Casino where at least two suspects, who were tribal members, were shot and killed and the Sheriff refused to respond to calls there anymore. One deputy Sheriff working a special overtime detail at the Chumash Casino in Santa Ynez arrested 36 drug violators in only six weeks time, most of them felonies involving methamphetamines being used, possessed and sold around the casino.”

Since the land in question is a County Island and if the TO are successful in establishing a reservation neither the County Sheriff’s Office or the Glendale Police Department would have authority to respond to any criminal activity on the reservation unless specifically requested by the TO. I suspect the TO will not do so as it would provide an opportunity for negative publicity.

thief“In another case, an elderly couple were walking in the parking lot of another Southern California Indian casino near San Bernardino and a thief whizzed by on a motorcycle and snatched the woman’s purse in the parking lot. The motorcycle grazed their car during the theft. They reported the incident to casino security guards, expecting that the crime would be reported to the Sheriff’s Department. They found out later, when they made an insurance claim for the damage to their car, this incident was never reported to the police. This is but another of the many negative impacts of Indian casinos, the fact that the primary duty of Indian casino security staff is to conceal any negative incidents that occur or insinuate the false claim that some kind of “sovereign status” permits them to deal with criminal acts when it does not.”

When you enter the reservation you do so at your own risk.

tv“Another problem is the failure and refusal of many local media outlets to report the crime, corruption and negative incidents occurring regularly at Indian casinos because those casinos are the biggest television, radio and newspaper advertisers they have. So the so-called “free press” has in effect, been co-opted by the fear of offending these gambling casinos who are their best advertising customers.”

This is a genuine concern. The Tribes advertise their casinos on television incessantly. One of our television stations, Channel 12, is connected to the Arizona Republic. Neither of these two giants of media are going to jeopardize their revenue streams by going negative. When was the last time you remember any media reporting on the use of the Tribal land, just north of Arizona’s southern border, as an open conduit for drug smuggling or illegal border crossings?

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Casino…good, bad or indifferent? Part 3

Posted by Joyce Clark on April 16, 2013
Posted in Casino  | Tagged With: , , , , | 1 Comment

We know the proposed site of the casino. We know about the state voter approved gaming compact and how the Tohono O’odham acquired the land.  Is a casino is healthy for an urbanized area?

There is one disclaimer however. I am not commenting on the casino as a social justice issue. For this discussion this issue is not about the white man having treated Indians badly over several hundred years. It’s not about owing Tribes for past wrongs. Today’s society has crafted many solutions for ameliorating social injustice. What this is about is whether a casino, whether owned by Las Vegas interests, Atlantic City interests or the Tribes, is a good thing within a major city. Glendale is a major city with a population of nearly a quarter of a million people. It is the fourth largest city in the state. It definitely qualifies as an urban area within the Phoenix metropolitan area.

threaten 2How is crime related to a casino? Does crime go up, go down or stay the same? The following is an Abstract entitled Casinos, Crime and Community Costs by Earl L. Grinols and David B. Mustard, originally published in 1996 but this excerpt is from the Review of Economics and Statistics (February 2006). The authors say, “We examine the relationship between casinos and crime using county-level data for the United States between 1977 and 1996. Casinos were nonexistent outside Nevada before 1978, and expanded to many other states during our sample period. Most factors that reduce crime occur before or shortly after a casino opens, whereas those that increase crime, including problem and pathological gambling, occur over time. The results suggest that the effect on crime is low shortly after a casino opens, and grows over time. Roughly 8% of crime in casino counties in 1996 was attributable to casinos, costing the average adult $75 per year.

“Casinos increased all crimes except murder, the crime with the least obvious connection to casinos. Most offenses showed that the impact of casinos on crime increased over time, a pattern very consistent with the theories of how casinos affect crime. The crime-ameliorating effects of casinos through increased employment opportunities and wages for low-skilled people will be concentrated shortly after opening. Between 5.5% and 30% of the different crimes in casino counties can be attributed to casinos.

“This translates into a social crime cost associated with casinos of $75 per adult in 1996. This figure does not include other social costs related to casinos, such as crime in neighboring counties, direct regulatory costs, costs related to employment and lost productivity, and social service and welfare costs. Overall, 8.6% of property crime and 12.6% of violent crime in counties with casinos was due to the presence of the casino.

crime 1“According to the study, five years after a casino opens, robbery in the community goes up 136 percent, aggravated assault is up 91 percent, auto theft is up 78 percent, burglary is up 50 percent, larceny is up 38 percent, rape is up 21 percent and murder is up 12 percent, compared to neighboring communities.

“Crime-lowering effects, like additional police and the new jobs represented by a casino are overwhelmed by rising crime increased by the presence of the casino, according to the study.”

Since this study was published in 1996 many pro casino interests have attempted to debunk it. Be that as it may, this is a definitive study that has been repeatedly cited by many reputable public policy groups in attempting to determine the benefits and negatives of a casino.

The New Hampshire Center for Public Policy Studies in its April, 2010 report entitled Impact of Expanded Gambling in New westgate 1Hampshire concluded in part, that negative impacts could be substantial:

  •      Decrease in meals and room taxes away from other, traditional sources (a shifting of tax revenue away from hotels and    restaurants such as Westgate, toward gambling facilities)
  •      Visitors and residents spend money on gambling that would be spent on other goods and services (known as “substitution”)
  • The state will have increased expenses related to expansion of personnel to accommodate the new facility
  • Creates an atmosphere of increased competition for state investments and subsidies
  • Shifts workers currently in one industry to the gambling industry (known as “displacement”). This new development may take workers from other industries and moves them into the casino industry
  • Social costs increase related to increased crime and pathological gambling
  • Significant potential political influence from a single industry

This New Hampshire study also offered, “For a standard casino, most patrons come from within 30 miles and participation declines exponentially as distance increases. These markets do not conform to state or other political boundaries.”

casino 1Another issue identified by the study said, “In casino markets like Las Vegas and Atlantic City 8-10% of casino patrons are ‘problem gamblers” (National Opinion Research Center, 2000). A person is not going to have a problem unless they have access to gambling. Proximity to a casino impacts propensity to gamble. Proximity to a casino (e.g. within 50 miles) increases the risk of pathological problems (National Opinion Research Center, 2000). Problem gambling will impact communities closest to the gambling venue and decrease the further away you are.”

In addition, “An analysis by the New Hampshire Lottery Commission shows that scratch ticket sales have declined in the last six months of 2012 in the region of New Hampshire closest to the Oxford County casino.”

This New Hampshire study raises issues not previously discussed publicly such as a diminishment of state lottery sales in the geographic region closest to a casino or that pathological gambling increases in the geographic area closest to the casino.

roads 2What about the issue of traffic? The Connecticut South Western Regional Planning Agency issued a Casino Traffic Impact Study in 2009.  “The purpose of this study was to estimate the possible traffic and air quality impacts of the development of a casino in Bridgeport.” The study concluded, “that the development of a casino would have a significant impact on traffic congestion in southwestern Connecticut. Casino traffic is not seasonal because the number of trips to and from casinos is relatively consistent from month to month. Casinos operate 24 hours per day; there is no peak travel period to and from casinos thus traffic impacts of casinos may be experienced at all times of day.” Many transportation agencies in many states where casinos have located have done similar studies. All recommend new transportation infrastructure whose costs are borne by taxpayers.

roads 1The increased traffic in the area will not just be due to the number of visitors to the casino. Add to that, traffic from employees as well as vendors and suppliers making deliveries with their semis at all hours of the day and night. In Glendale a traffic impact analysis study was done for Westgate and the University of Phoenix Stadium. As a result of those studies, additional traffic mitigation was created and paid for by the developers of those projects. There is no mechanism to compel the Tohono O’odham to enhance road infrastructure in the area. As a sovereign nation there is no local, state or federal mechanism to compel another nation (think of it as another country) to reimburse the costs of enhanced transportation infrastructure to and from their site.

constructionIn return for the problems created by a casino in an urban area, supporters of the casino continually use the mantra of (1) it will pump up business in the adjoining local area. They say that customers will leave the casino environment and move to Westgate to eat and to shop.  I doubt the restaurants and hotels, or Tanger Outlet Mall in Westgate would agree with that notion. More likely, customers with limited disposable income will make choices and it will be one or the other – Westgate or the casino – not both; and (2) it will bring jobs – temporary construction jobs and later, permanent jobs servicing the casino. Keep in mind, 25% of the jobs created, whether temporary construction jobs or permanent service jobs later, are reserved for Native Americans. At Talking Stick Casino, “Chanen Construction, which has worked with Casino Arizona for 14 years, divided the enormous job of sheet-rocking the interior and exterior into 10 different bid packages. This resulted in five firms getting the work, instead of one, which is the norm. But Chanen wanted ‘to maximize opportunities for different project participants,’ the company told McGraw-Hill Construction in a profile of Talking Stick published last fall. ‘We have a process where we let tribal members who own businesses participate as subcontractors, so we want to make the packages in smaller bites so more participation could occur’.”

The Tohono O’odham has said repeatedly there will be 6,000 construction jobs. The Maryland Live! Casino is a 332,500 square foot facility (twice the size of the proposed TO casino) and anticipates creating 2,750 construction-related jobs (half that number would be approximately 1,400 jobs and reportedly a much more realistic number for this facility). In an effort to “sell” the benefits of the casino, it is quite possible numbers have been inflated. It is a subtle form of deception, no doubt, but not unexpected considering the TO’s actions with regard to Proposition 202.

Problems throughout the country related to casino construction have surfaced. Here is but one example – a Press Release from a coalition of unions in California issued on January 15, 2013, “ROHNERT PARK, CA: Graton Rancheria’s (my note: a coalition of Indian tribes) promises to Sonoma County union workers have been dashed by lay-offs of local union members as out-of-area workers are being brought in to take their places. Sonoma County union construction workers report that workers are being brought in from “Nevada and the L.A. area” and even as far away as Alabama to work on the Graton Rancheria casino/hotel project in Rohnert Park.

Reports started as early as November, as a local member of the Carpenters Union raised the first alarm about locals being replaced by out-of-area workers.   Now the complaints are coming from a union cement worker who believes that approximately 70% of the casino workforce is made up of the out-of-towners.”

Those who think the casino is the answer to Glendale’s problems, will dismiss the arguments made in this blog and take this as an opportunity to respond in the negative. As long as comments are respectful of one another and deal with the issue at hand, they will be posted as responses to this blog.

In the next blog we will look at the legal issues and a basket full of attorneys involved in the casino issue.

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