The recent Supreme Court decision on sports gambling has been hailed by many politicians, including our own Gov. Gary Herbert, as a victory for states’ rights, by opinion writers such as George Will as a way to decriminalize gambling, by such luminaries as NBA Commissioner Adam Silver as a godsend for professional sports and by many in the gambling industry as a great revenue stream for states and Native American casinos. Some observers suggest the number of states offering sports gambling will be close to 40 in the next two years. Utah, we are told, will not be in that group — at least not in the near future. But the real question is whether Utah should ever even toy with the idea.
One of the major arguments for Utah legalizing gambling is that if it does not, Utahns will simply head to neighboring states, meaning that Utah is unnecessarily turning away gambling revenues. Utah needs to resist that siren song.
Let us focus the argument on economics. Anyone who has looked at state-sponsored or regulated gambling (lotteries or casinos) with a clear eye will quickly learn that gambling is a losing proposition for most states. Which state is among the best run and fiscally responsible? Utah. Which states have some of the most state-sponsored or regulated gambling? New Jersey, Illinois and Pennsylvania. Which states are in the most trouble economically today? New Jersey, Illinois and Pennsylvania. (New Jersey ranks No. 50 and Utah ranks in the top five economically.)
Is that a coincidence? I would suggest it is not. Remember that it is the poor who use a disproportionate part of their income for gambling, looking upon winning as their retirement program. What a delusion. And the studies further show that many of those who do hit the jackpot end up in a much worse state for having done so, losing everything within one or two years. Gambling is not a model for helping those struggling economically to work their way out of poverty.
One might also do a little review of the economic benefits enjoyed by Native Americans who have casinos on their reservations. Studies suggest most communities are no better and often are worse off than they were before they permitted casinos to come on their lands.
A good question to ask a casino owner is whether he or she ever engages in gambling. The most frequent response is “no.” One owner emphatically said, “Gambling is for losers.” The house always wins. But the lure of the bright lights and loud sounds of slot machines and other forms of gambling can be enticing. Utah should not be blinded by the urge for sudden wealth. It is not reality. It is a path in the wrong direction. Utah has led the way as a vibrant and well-run state. Let’s keep it that way. To continue to be economically strong and socially responsible, Utah needs to remain gambling free.