Russell Moore: Rhode Island Should Go “All In” On Sin
Monday, July 01, 2013
An analysis by Bloomberg News this week found that Rhode Island currently ranks second in the nation with respect to reliance on “sin” taxes. Hate it or love it, gambling and sin are a growth industry in Rhode Island.
And at this point, for the sake of our economy, we can’t afford to reject any economic growth. The time has come for Little Rhody to “double down” on gambling.
The Bloomberg study considered “sin” taxes any revenue derived from “tobacco, alcohol and pari-mutuels (or betting, usually on horse racing, dog racing and jai-alai) provided by the State Government Tax Collections survey of the U.S. Census Bureau.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThose sources of revenue accounted for $144.6 million—roughly 5.1 percent of the state’s budget.
But our compulsion to sin doesn’t stop there. The survey did not take into consideration revenue derived from other gaming such as slot machines or table games, as those sources are accounted for in multiple ways, according to the analysis.
Be that as it may, I’m certain that given Rhode Island’s eye-popping 61 percent takeout for video lottery terminals (AKA slot machines), and recent addition of table games to Twin River (formerly known as Lincoln Greyhound Park and Lincoln Downs), we’d hold our position as one of the nation's states most dependent on sinners per capita.
According to the most recent audited data, compiled as of June 30 of last year (the new data will be available shortly), Rhode Island raked in $321 million in slot machine revenue. That was a 7 percent increase over the previous year.
That means Rhode Island takes in roughly $465 million in sin related revenue, for those scoring at home.
Gambling revenue is growing. And it will only grow larger this year, thanks to the addition of table games at Twin River. The debate as to whether or not gambling revenue is moral or immoral has become inconsequential at this point. Revenue is revenue. And as the General Assembly told us repeatedly last week, we don’t have enough of it.
It may very well be the case that gambling does, in fact, hurt people with lower incomes than their wealthier counterparts. It may end up costing us more in added social services. But our state voters have decided that gambling is a path we should take when they decided to add table games to Twin River. It was an full-fledged affirmation of the sin economy.
So let's do it right
If we’re going to do this, we may as well do it right. There’s no reason for the state to take a half-pregnant approach here. We need to maximize our returns from the sin economy. No stone should be left unturned. If we’re going to compete with Massachusetts’s and Connecticut's casinos, we to do everything they do—and better.
Now that state voters have added table games to Twin River’s arsenal, our gaming revenue will increase further. That’s a good thing. So we should add more table games to the facility, expand it even further, by adding more table games and gaming options.
That means a hotel should be added to the facility in order to make it a destination resort. High end fashion stores should also be located at the premises so that gamblers can spend their winnings right away. Restaurants that cater to every taste should be opened, and nightlife should also become a larger part of the equation.
We need to make sure that we’re not only attracting Rhode Island residents, but people from all over the region if not the nation. We need to be able to feature the largest and most attractive entertainment events. If we’re going to get into the gaming business, we better do it 100-percent, or else we’ll never succeed.
We need to think big
A portion of the new revenue from the facility should be dedicated towards property tax relief for Lincoln residents to compensate for the inconvenience of living near a casino.
But why stop with Twin River and Newport Grand? I’m a firm believer in competition. I don’t think Twin River and Newport Grand need to, or should be allowed to have a monopoly on gaming in our state. On the contrary, the state needs to build more casinos.
For instance, why not consider taking what once was the Rhode Island Mall and inviting Steve Wynn or some other gambling mogul to build a casino there? A second full-scale casino in Rhode Island, which would also be run by the state the same way Newport Grand and Twin River are, would give those facilities competition and make them both more efficient—a combination that would improve things for the customers and the casinos.
I’m sure the not-in-my-back-yard-types who own tourism and entertainment businesses in Rhode Island will be up in arms about my feelings about gambling. The argument they’ll make is that entertainment and restaurants from casinos will hurt the existing businesses in Rhode Island.
But I noticed that New York City, Chicago, Los Angeles, and Las Vegas all have plenty of entertainment and dining options yet all theaters and restaurants seem to have no problems coexisting. In fact, they make those places more of a tourist destination for people to flock to when they’re looking to have fun. Rhode Island would do very well to follow their example.
To quote mobster Hyman Roth in The Godfather Part II: “This is the business we've chosen."
A native Rhode Islander, Russell J. Moore is a graduate of Providence College and St. Raphael Academy. He worked as a news reporter for 7 years (2004-2010), 5 of which with The Warwick Beacon, focusing on government. He continues to keep a close eye on the inner workings of Rhode Islands state and local governments.
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