GAMBLING IN CONNECTICUT: Analyzing the Economic and Social Impacts, Spectrum Gaming Group, June 22, 2009, a 390-page report prepared for and funded by the State of Connecticut. Below are selected quotations from the report.

 

The reality is that impacts on the individual do not occur without impacts on the family, the workplace and society as a whole. Many of the same impacts that society sees on the individual, it also sees on others, especially loved ones. (page 56)

 

Attorney David F. Falvey, who has one of the largest consumer bankruptcy law practices in eastern Connecticut, said while it was rare for gambling to have played a factor in bankruptcy petitions prior to casinos, it is commonplace today. (page 59)

 

Problem and pathological gambling are associated with interpersonal problems, including arguments with family, friends and co-workers.  Clinicians noted that only a minority of problem gamblers seeking therapy have supportive relationships that survive problems associated with their disorder. Many times, families are not equipped to cope with financial and social strains that problem gambling creates. This frustration is compounded by a lack of understanding of the nature of the disorder. Failing to recognize it as a disorder, significant others become frustrated, believing that the gambler could choose to stop gambling. By taking such a position, they often fail to assist the problem gambler in identifying the disorder and seeking assistance. (page 71)

 

Much of the scientific literature on the effects of problem gambling on the family focus on domestic violence, but this is just a small proportion of the harm being done to families. As summarized by one of the clinicians in our round-table session:  “What people don‘t understand is the degree of preoccupation in the family. Normal activities around the house stop happening. People aren‘t eating together. People aren‘t talking to each other. People aren‘t nurturing each other, children not doing homework. These are chronic, high stress effects – diminished social family functioning that destroys the kids. As for the kids, they then start doing their own things to cope; they drink and do drugs.” (page 72)

 

Because of the emotional strain, it is likely that a child of a pathological gambler will end up doing poorly in school, manifesting behavioral problems in the classroom or failing to graduate. A supervisor at the Norwich Department of Social Services, speaking as a representative of the department, told us about a number of children misbehaving as a result of a parent‘s gambling problem. (page 75)

 

There were 43 embezzlement arrests in 1992, the year the first Indian casino opened. In 2007, there were 214. No other state that reported 40 or more embezzlements in 1992 has had a higher percentage increase than Connecticut. The state‘s increase is nearly 10 times that of the national average. (page 78) Gambling-related embezzlements continue to be such a problem in southeastern Connecticut that a newspaper columnist in 2007 called the region the “embezzlement capital of the world.” (page 141)  The FBI and state crime reports do not indicate how many of the embezzlements were casino- or gambling-related, but our research and discussions with law enforcement personnel indicate that many of those who stole from their employer used either part or all of the money to gamble at the two Indian casinos. (page 143)

 

[F]or both Foxwoods and Mohegan Sun, we assumed 40 percent of the jobs would come from the displacement of other area businesses.  (page 107) [Note that Foxwoods and Mohegan Sun are world-class destination casinos, drawing more out of region tourists than convenience casinos and minimizing placing job displacement.]

 

[Using the generally accepted Grinols/Mustard methodology, and using Connecticut pathologic gambling prevalence data] The losses of the pathological gamblers could therefore range from $435 million to $543 million. It would be imprudent to take our estimate as anything more than a ballpark figure. A full cost-benefit study would have to be undertaken to obtain a more accurate estimate of the impact on the state. (page 79)

 

The above pathologic-only gambling-related costs can be compared with $556 million in state and local direct, indirect, and induced taxes from both casinos in 2007. (page 120)

 

Members of our focus groups who self-excluded themselves say they often returned to gamble. One said a casino host berated her for self-excluding herself. Another said she continued to receive promotional materials. A study of Mohegan Sun self-excluded patrons indicated that 20 percent returned to the casino. And of those that did return, one-in-five returned nine or more times. (page 86)

 

The casino generated economic growth produced unintended consequences. The Eastern Connecticut Workforce Investment Board, for example, noted that the “big picture” is missed if the focus is only on job creation.  Many of the region‘s laid-off defense and manufacturing workers shifted careers to take jobs in the service sector. Many became underemployed or worked two jobs to keep pace with the rising cost of living and the widening gap between wages and housing. This has led to a steady outmigration of the region‘s educated and technically skilled workers. (pages 126-127)

 

State‘s Attorneys prosecute criminal cases in Connecticut. The New London area is one of 13 jurisdictions with a State‘s Attorney. The office has been struggling to process casino-related cases … [T]he New London office spends much of its time prosecuting casino-related cases, from simple trespass cases to armed robberies. (page 193)

 

Jane Dauphinais, executive director of the Southeastern Connecticut Housing Alliance, noted there has always been an affordable-housing problem in the state as well as the region. The addition of so many low-paying jobs has made the problem that much worse in southeastern Connecticut. (page 198)

 

The lack of affordable housing has created, in large part, a substandard housing problem in southeastern Connecticut. Area housing officials such as Vernon Vessey of Montville acknowledge they have been waging an unsuccessful battle to curb illegal conversions of single-family homes into rooming houses. (page 203)

 

Norwich Public Schools, a district with 3,992 students, experienced a 1.3 percent enrollment decline from 2003 to 2008. Despite the decrease, a dramatic shift in demographics related to casino development created severe problems for the district, according to Schools Superintendent Pamela Aubin. It spends close to $2 million each year to operate an English for Speakers of Other Language program (ESOL) that became necessary after the casinos opened. (pages 210-211)  The dramatic increases in ESOL students occurred after casinos were unable to fill positions with area residents. They recruited non-English speaking workers from New York City and Boston as well as from other countries in late 2001. Such students are not proficient enough in English language to be educated in English-language classrooms. The students come from Haiti, Peru, the Dominican Republic and Eastern Europe. In addition, many students speak only Chinese. In the 2007-2008 school year, 289 students, or more than 7 percent of the enrollment, were Asian-Americans. That is four times the figure from the 1993-1994 school year. In 1999, the district had just 40 ESOL students and one teacher. In the 2007-2008, it had 380 such students who spoke at least 26 different languages. As of October 1, 2008, the four largest language groups were Spanish, Chinese (including Mandarin and Cantonese), Haitian Creole and Cape Verdean Creole … The district succeeds in making a number of students proficient in English, only to have them replaced by a set of new non-English speaking students, according to Aubin … Fifty-five percent of Norwich students were eligible for free or reduced-price meals.  (page 212-213)

 

Norwich Free Academy, [the regional public] high school has sustained its own set of casino impacts. James Landherr, the school‘s director of curriculum and development, has been with the district for 15 years. He estimates the cost of casino-related impacts at nearly $600,000 a year. Like Norwich, the NFA has had to cope with a significant increase in ESOL students. There were nearly 200 such students in the 2008-2009 school year, compared to just 30 in 1993-1994, when students spoke three languages. Today, they speak 30 languages. The academy spends $100,000 for an ESOL director, $350,000 for five full-time teachers and $120,000 for four tutors. In addition, it spends money for translation and extra training. Landherr said most, but not all, of the Spanish-, Haitian Creole- and Chinese-speaking students are children of casino workers. The experience at NFA is similar to that of the Norwich School District: ESOL students become proficient in English and then new learners replace those that have become proficient. “It is like a revolving door,” Landherr said. (page 216)

 

In a 2001 study,404 local officials called casino-related impacts "overwhelming." First Selectman Nicholas Mullane said the impacts continue to affect the town‘s nearly 5,000 residents. (page 224)

 

Former Norwich, CT City Manager Robert Zarnetske, now a city councilman, told the General Assembly in April 2005: “We have the makings of a perfect public policy storm: Inexpensive, old-stock housing and a massive influx of low and moderate wage earners who need local services such as schools, social services, police and fire protection.” (page 225) [Read pages 220-229 for a summary of the many costly impacts on municipalities and schools in the region surrounding the casinos]

 

[Preston] First Selectman Robert Congdon said his community continues to struggle with the impacts generated from the two casinos. Preston formerly was able to provide police protection with just one resident state trooper and several part-time constables. The cost in 1992 was less than $100,000. The police budget for the current fiscal year is more than $200,000. The fire department budget has more than tripled to $143,000. Congdon attributes much of the increase to casino development and increased casino traffic. (page 239)

 

More than 6,500 Connecticut residents sought help through the [Gambling] Helpline from 1998 to 2007. Nearly 20 percent contemplated suicide as a result of their gambling problems; 3.5 percent reported they attempted suicide. (page 258)