Study Paints Casino Drain on Economy
: November 13, 2000 at 10:45:52 PST
Study says casino would drain cash from region
KENOSHA, Wis. - A proposed casino would drain about $221 million a
year from the regional economy, according to a study commissioned
by the casino's opponents.
The Menominee Nation's casino, planned for the Dairyland Greyhound
Park, will derive only 10 percent of its revenue from people
outside the region, while 90 percent of the money will come from
residents in the surrounding eight-county area, which includes
Kenosha, Racine, Walworth, Milwaukee, Waukesha, Ozaukee,
Washington and Lake (Ill.) counties, according to the study.
The Kenosha Coalition Against Legalized Gambling paid $2,000 to
William N. Thompson, a professor of public administration at the
University of Nevada-Las Vegas, to complete the study.
Earlier this fall, Thompson developed an analysis with similar
findings for opponents of the Ho Chunk tribe's proposed casino in
La Crosse. Thompson's study concludes that given the imbalance of
spending, social costs of compulsive gambling and crime fostered
by the casino and the tribe's plans to remove up to 70 percent of
profits from the region, the project will create a drag on the
regional economy, not the economic boost that casino proponents
The professor's study is based in part on numbers developed by
Crowe Chizek and Co., an Indianapolis consulting firm hired by the
city in 1998 to research the economic and social effects of casino
gambling in Kenosha.
Thompson forecasts an annual draw on the region of $221,967,578.
Thompson also has done research work on behalf of other tribes,
showing the positive economic benefits of casinos where the
majority of revenue would come from outside the region where a
casino was located.
The Menominee want permission from the U.S. Department of the
Interior and the Bureau of Indian Affairs to place the Kenosha
property in trust, a condition necessary to obtain a gambling
license because the casino must be on tribal land. Existing
contracts between the tribe, the city and Kenosha
County will expire if BIA and full state approval is not obtained
by Dec. 31.