By Dennis Chung, Contributor
THE CONCEPT of casino gambling in Jamaica has been in a seesaw state for several years. At times it seems favourable and another time it seems as if it is not in our best interest.
This latest round of debate seems to be the most positive move this government has made towards its introduction. The question therefore arises, why does the government have an interest at this particular time? It could be argued that it is an attempt to close the deficit rather than a commitment to the idea of casino gambling, as a value-added to our tourism product. I do hope the study to be done will examine casino gambling and weigh carefully the advantages and disadvantages to the economy in the long run. There are some valid arguments against and for casino gambling, which must be considered, lest in our haste to generate revenue we end up with an inferior tourism product.
It would do well to examine some of the arguments for and against casino gaming. Firstly, casino gambling is seen as immoral. Gambling is seen as wrong. This is a very traditional view, which has changed over time. Many persons are waking up to the realisation (including our tourism competitors) that casino gambling is merely entertainment, just as raffles and bingos which are undertaken by many organisations. But is there really a difference between casino gambling, bingo and raffles?
The truth is these are all games of chances and intended for entertainment. From a moral standpoint, if we can have lotteries, bingo, raffles and horseracing then what is wrong with casino gambling? In fact, my personal opinion is that it is better to raise funds for charity through organised gambling, as is done through Supreme Ventures and JLC. I refer, for example, to contributions to the SDF and education as dictated by the legislation surrounding these games.
The second argument against the introduction of casino gambling is the promotion of criminal activities. This is the main argument that creates the distinction between casino and other forms of gambling. It is thought that the existence of casinos introduces greater levels of corruption and crime than any other form of gambling. This general perception is derived from Hollywood, as persons have been exposed to mafia movies, in which crime is affiliated with casinos. The reality is that casinos have been flourishing all over the United States and in other countries yet there is no corresponding increase in crime.
In my view we experience more violent crimes as a result of politics than all forms of gambling put together. Should we then ban politics? Are we not rated as having the fourth highest murder rate in the world and we have no casinos? In fact, this is an argument for legalisation, as it is easier to control a legal operation rather than one that is illegal. When activity is illegal it tends to be accompanied by crime. Therefore, the best control is to legislate.
There is also the argument that legalisation will geometrically expand gambling in Jamaica yet extensive illegal gambling currently exists in Jamaica. The problems Supreme Ventures and Jamaica Lottery Company faces with illegal games are evidence of this point. People did not start playing Drop Pan when Supreme Ventures arrived on the scene as they were playing this 'illegal' game long before. What legalising casino gambling will do is to capture money through taxes, charitable contributions and legal winnings.
What is happening in Jamaica is a black market for gaming has been created as was done with US$ trading in the 1980s. No legislation in the world can curb demand and supply. The US experienced this with boot legging in the 1950s and the world is seeing the evidence of this with the illegal drug trade. The more we legislate against and throw resources at it, the more profitable it gets as the rewards increase (Economics 101).
Increase in gambling activities are driven primarily by existing economic conditions. As incomes decrease, one is more likely to risk money on a chance to increase it tenfold. That is the opportunity gambling provides. I do agree that gambling creates addicts (pathological gambling) and is susceptible to under-age participation. Isn't this also true of alcohol and cigarettes? In fact, even someone who spends all his time pursuing charitable activities will sooner or later become a pauper. It is excess that creates the problem, not casino gambling. In fact if it were legal then the extent of the problem could be more readily measured and controlled.
A portion of the proceeds could also go towards addressing these issues. There is no doubt that casino, and other forms of gambling, have had a positive impact on many cities around the world. In Jamaica we see the benefits of gambling to sports, charity, education, culture and so on. Recently, the US National Gambling Impact Study Commission (NGISC) tabled its final report. This can be viewed at www.casino-gambling-reports.com/GamblingStudy. The following are excerpts from the study, which speaks to the impact gambling has had on the US:
"..Today, all but two states have some form of legalised gambling -- As gambling sites proliferate on the Internet and telephone gambling is legalised in more states, an increasingly large fraction of the public can place a bet without ever leaving home at all - Universally available, "round-the-clock" gambling may soon be a reality--the transformation of Las Vegas into family friendly theme resorts, in which gambling is but one of a menu of attractions, have become familiar backdrops to daily life.
Many of the positive economic impacts are in fact easy to point to if not always to quantify: Sleepy backwaters have become metropolises almost overnight; skyscrapers rise on beaches at once-fading tourist areas; legions of employees testify to the hope and opportunities that the casinos have brought them and their families and some Indian nations have leapt from prolonged neglect and deprivation to sudden abundance. Gambling has not just made the desert bloom in Las Vegas but has made it the fastest growing city in the United States."
In fact, we have missed out on a big opportunity, which is Internet Gaming. This is the fastest growing aspect of gaming today, from which we could have earned millions of US$. The NGISC report states that Internet Gambling doubled between 1997 and 1998 with the number of gamblers increasing from 6.9 to 14.5 million and revenues from US$300m to US$651m. It also states that observers believe that the rapid growth will continue. In 1998, I did some research on Internet Gaming and learned that Antigua earned approximately US$7m in 3 years from licensing fees alone, not including the other spin-offs to the economy. This was at a time the US was unsuccessfully fighting Internet Gambling and never had any significant convictions, as questions of jurisdiction arose. During this time Antigua realised significant revenues from Internet Gaming activities, as operators would set up bases there, since it was illegal in the US. The players predicted that the US would conform, as it was fighting a losing battle, and so said so done.
The question in my mind is not whether we should introduce casino gambling but how to approach it. There is no doubt that it can bring significant benefits, but we must ensure that it is integrated properly with the tourism product and effectively controlled. As a matter of fact, I believe that casino gambling has more to fear from the crime we presently have than us fearing any crime from casino gambling.
