Gambling Impact Study Commission voted eight to one to subpoena information from
the U.S. National Indian Gaming Commission in 1999. However, use of its subpoena
power was thereafter deemed largely ineffectual by the Commission and was not
3. The Feeder Market Impacts of Tribal Casinos
.............The Final Report of the Congressional 1999 National Gambling Impact Study
Commission called for a moratorium on the expansion of any type of gambling anywhere
in the United States. Although tactfully worded, the National Gambling Commission
also called for the re-criminalization of various types of gambling, particularly slot
machines convenient to the public.
.............Some of the negative impacts of casinos and slot machines are detailed in the
appendix to the article, Diminishing Or Negating The Multiplier Effect: The Transfer of
Consumer Dollars to Legalized Gambling: Should A Negative Socio-Economic "Crime
Multiplier" be Included in Gambling Cost/Benefit Analyses?, 2003 MICH. ST. DCL L.
REV. 281-313 (lead article). The circle "feeder market" chart and sources documentation
follow this written testimony.
.............The most authoritative and specific example involving tribal casinos is a 1995
Wisconsin report which concluded that "[w]ithout considering the social costs of
compulsive [addicted] gambling, the 'rest-of-the-state' areas lose-or, transfer in-$223.94
million to the local gaming areas. Considering the lowest estimated social costs of
problem gambling, the rest of
[Wisconsin] loses $318.61 million to gambling." This
report also concluded that without casino gambling, many local citizens would have
increased participation in other "outside" activities. "More than 10% of the locals would
spend more on groceries if it were not for the casino, while nearly one-fourth would
spend more on clothes. Thirty-seven percent said that their savings had been reduced
since the casino had opened
" WILLIAM THOMPSON, RICARDO GAZEL, & DAN
RICKMAN, THE ECONOMIC IMPACT OF NATIVE AMERICAN GAMBLING IN WISCONSIN (Wis.
Policy Res. Inst. 1995).
.............From the business perspective, businesses are not naïve. For example, "in a rare
public stand on a controversial political issue, the Greater Washington Board of Trade's
85-member board voted unanimously against" Mayor Sharon Pratt Kelly's initiative to
bring casino-style gambling to Washington, D.C. Liz Spayd & Yolanda Woodlee, Trade
Board Rejects D.C. Casino Plan, WASH. POST, Sept, 25, 1993, at A1, A8. With the
exception of the cluster services associated with gambling, new businesses tend not to
locate in areas allowing legalized gambling because of one or more of the
aforementioned costs. In areas saturated with legalized gambling activities, pre-existing
businesses face added pressures that push them toward illiquidity and even bankruptcy.
4. Tribal Gambling Activities: The Issues Involving Market Saturation
.............In his classic book entitled Economics, Nobel-Prize laureate Paul Samuelson
summarized the economics involved in gambling activities as follows: "There is
substantial economic case to be made against gambling. First, it involves simply sterile
transfers of money or goods between individuals, creating no new money or goods.