Studies Look at Economic and Social Impacts of Casinos on Ohio

Casinos in Ohio could generate up to $4 billion in revenue annually while causing an additional 109,000 Ohioans to develop gambling problems, according to two studies commissioned by a business group released this week. The Greater Cleveland Partnership, an organization representing business in the region, partnered with several Cincinnati businesses to fund the studies.

Casinos would create 85,000 jobs and generate about $610 million in state and local tax revenue, according to one study by Strategic Partner Management Consulting. (Question: Did the study also measure the cost outlays and investments required to build this industry in Ohio? Another important issue is measuring the competitive effect that gaming will have on other forms of entertainment and recreational activities in Ohio.) Of course, the question is what type of jobs will be created. I've looked at the occupational data on casinos, and while some skilled and management jobs are involved, there are many low-skilled jobs.

The study, based on two hypothetical models of casino locations throughout the state, estimated that Ohioans would spend $2.975 billion at casinos, including the $925 million they spend at casinos in neighboring states now, and visitors would add approximately $1 billion. (Note: the key here is to get more out of state folks to bring their money to Ohio!)

Another study by the Maxine Levin Goodman College of Urban Affairs at Cleveland State University estimated that 252,000 Ohioans -- 3 percent of the state's adult population --already have a gambling addiction and that casinos in Ohio would add 109,000 problem gamblers. (My guess is that these 109,000 folks are already "oriented" to some type of gambling activity, such as the tracks, lotteries, and other "get-rich-quick" type activities, and they would just shift to casino games. Clearly, there is an impact. I just question the numbers.)

For more information of the studies, go to NewsNet5.com

Having worked with several Indian tribes on economic diversification and sustainability projects that included casinos, I can attest to the fact that: 1) all that glitters in the casino industry is not gold; 2) casinos are not an end in themselves from an economic development perspective; 3) the gaming and casino industry is growing increasingly competitive as everyone under the sun jumps into this game; and 4) look for industry overcapacity, lower profits, and a major industry shakeout.

Casinos need to be seen as economic generators in growing the larger surrounding Entertainment, Hospitality, and Tourism industry. My current work with a leading tribe points to the need for a very strategic approach to gaming. More on that one later.