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WHY VLT'S ARE NOT ENOUGH
Why casino-anchored destination resorts and downtown redevelopment projects would better serve all Texans.
The state's leadership could focus on what benefits the largest number of Texans. As good as the projected revenues from video lottery terminals (VLTs) might be, real estate development projects with limited gaming-anchored attractions adequately distributed across Texas would produce significantly more benefits:
- at least twenty (20) times more permanent new jobs!
- at least twenty (20) times more economic development and construction projects!
- significantly greater state and local government revenues!
- casino-anchored destination attractions would bring new tourists to Texas who are not just interested in gaming!
- generous funding to address problem gambling (Currently, Texas exports all of the economic and tax revenue benefits of gaming to other states, while keeping all of the so-called social costs)
Experts agree that not all forms of gambling are created equal.
Economic Impacts
Comparison of VLTs and
Planned Casino-anchored Development |
| |
VLTs |
Limited Casino Gambling |
|
(40,000 VLTs) |
(12-15 casinos: (at race tracks, Indian reservations & destination cities) |
| New JOBS: |
10,000-15,000
(primarily at race tracks & Indian reservations) |
over 300,000
(statewide) |
| New Government Tax & Other REVENUES: |
$173 - 402 million per year (immediately)
$712 mil-$1 billion per year (2008)
(primarily for the state) |
$1-2 billion per year (immediately)
$3-4 billion per year (2009)
(for state and local governments) |
| New Construction & Economic DEVELOPMENT Costs: |
maybe $100-300 million |
$7 billion + |
|
TOURISM $$ |
minimal
 |
very significant
(also protects/ enhances convention center business)
 |
Sources: Texas Comptroller of Public Accounts; Legislative Budget Board; the Perryman Group
Video Lottery Terminals ("slot machines") at racetracks and Indian reservations
VLTs vs Casino-anchored development
- Unlike casinos, which create jobs and foster businesses that cater to tourists and local patrons, VLTs alone at our racetracks and Native American reservations are not likely to create many jobs in the community or generate other positive economic effects.
- Local economies will not see significant benefits from VLTs---"Not coincidentally, VLTs can be taxed at extraordinarily high rates, meaning they are extremely efficient revenue collectors from the point of view of state governments, as opposed to local economies."
- VLTs at our racetracks and Native American reservations would not offer the full service destination amenities that attract tourists who are not just interested in gaming. Casinos offer many more diverse entertainment options, such as shopping, dining, concert-going, etc.
- The big-entertainment, casino-anchored development projects would present a different face to the community. They would attract different kinds of consumers.
Sources: Christiansen Capital Advisors; Economist Don Phares (University of Missouri); Gemini Research; American Gaming Association
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