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Stabroek News

THE CASINO DEBATE - Gambling, solution to high public debt?
published: Wednesday | April 30, 2008


A computer screen displays an online gambling website. - File

THE EDITOR, Sir:

I read the gambling-related articles and editorials with great interest because the topic was discussed at length in my 'Young Jamaicans Unite' group on Face-book. Each contributor had his own perspective, but we were forced to conduct research and some of my discoveries surprised me, especially because of the negative effects that most people associate with casinos.

My information is mainly taken from experience, readings and especially a 2005 study by Grinols and Mustard in the United States titled 'Casinos, Crime and Community Costs', one of the most exhaustive studies of casinos and crime in that country. There is no doubt that the following would be true of casinos in Jamaica:

Some will seek to argue that the creation of jobs for low-skilled workers would result in a reduction of crime, but the study and others quoted showed that this was a short-term effect and that overall, crimes such as robbery and assault do increase over time with the introduction of casinos. But, surprisingly, murders do not significantly increase.

More importantly, these studies and further examination of the effects of casinos on United States counties, The Bahamas and Macau provide ample information on what to expect and allow our respective agencies to be more prepared to combat the potential increases.

The Bahamas has seen four main negative trends: robbery of tourists, illegal gambling, increased prostitution and theft of personal information data. Macau provides examples on organised crime rackets and scams.

Macau's rise as the Asian Las Vegas stemmed from its rich new neighbours such as Hong Kong, similarly to the opportunity Jamaica has to bring in money from the US, Cayman, Trinidad and Barbados.

NO SURPRISE

It is no surprise that Macau has been able to use gambling proceeds to fund such infrastructure improvements such as a new airport, highways, bridges and a new ferry terminal since the gambling industry accounts for more than 40 per cent of GDP.

My trip to Atlantis in The Bahamas a few years ago also helped shape my opinions as I saw many Bahamians benefiting from the businesses in and around the casino. A contributor to the forum also raised the idea of online gambling, similar to what Antigua has become well known for. The person articulated that crime was not a trait of such gambling, created highly skilled jobs and was relatively easy to implement.

My sticking point with casinos has always been that Jamaica should put the proceeds into long-term projects that create real competitive advantages, such as public debt reduction, organic foods, pharmaceutical research, ethanol production from sugarcane and the entertainment industry.

With a public debt of 140 per cent of GDP, Jamaica needs to seriously consider all options to earn money and grow the economy. There is no question as to whether casinos can play a significant role in helping to reduce the significant debt load of the country, which in turn benefits everyone.

I am, etc.,

DAVID MULLINGS

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