11 May CasinosThe question of economic development continues t
Casinos
The question of economic development continues to receive attention, as officials recognize the need to generate revenue and employment in Wisconsin. Some studies suggest that building additional casinos improves the economy, while others argue that the presence of casinos leads to an increase in crime. Assume for the sake of this assignment that the Wisconsin Economic Development Board has been approached by two groups:
1) A Wisconsin Native American tribe, in partnership with private development organizations, seeks to open a new casino in the greater Milwaukee area, along with a 1,000 room hotel (which includes restaurants, retail shops, and entertainment).
2) A Wisconsin Native American tribe seeks permission to install slot machines in local gas stations/restaurants throughout Wisconsin, where revenue would be shared between the tribal group and the owners of each establishment where the machine(s) are located.
For the sake of this assignment, assume that the Wisconsin Economic Development Board wishes to approve one of these options. The first option involves a single large facility, and while it could compete with other larger existing casinos, the Wisconsin Economic Development Board can limit the construction of this facility to a certain geographic region (you can also recommend a certain geographic area restriction to the Board). The second option would involve facilities that are smaller in scale at any one location, but could bring legal slot machines to towns throughout Wisconsin (which would also compete, to some degree, with larger casinos).
Your group has been asked to evaluate which of these two requests the Board should approve. Which option is likely to bring more to Wisconsin with respect to economic development? Which option is less likely to result in excess crime and/or habitual gambling problems? In other words, what might the socioeconomic impact of these two choices be, based on the experience of other cities? Information about this topic can be found in various online newspapers, and in reports from other government and private agencies dealing with economic development and casino gambling.
Assuming the role of a consultant asked to write a proposal for the State of Wisconsin Economic Development Board, your team will conduct necessary research and prepare a written proposal that includes your recommendation as well as implementation considerations for the alternative you recommend.
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