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A Poverty and Social Impact Analysis of Casino Gaming in Tunica, Ms

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A Poverty and Social Impact Analysis of Casino Gaming in Tunica, Ms The Pennsylvania State University The Graduate School College of Earth and Mineral Sciences THE TUNICA MIRACLE, SIN AND SAVIOR IN AMERICA’S ETHIOPIA: A POVERTY AND SOCIAL IMPACT ANALYSIS OF CASINO GAMING IN TUNICA, MS A Thesis in Geography by Tracey L. Farrigan © 2005 Tracey L. Farrigan Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy May 2005 The thesis of Tracey L. Farrigan has been reviewed and approved* by the following: Amy K. Glasmeier Professor of Geography and Regional Planning Thesis Advisor Chair of Committee Adam Rose Professor of Geography and Environmental Economics Martin Shields Associate Professor of Agricultural and Regional Economics Chris Benner Assistant Professor of Geography Roger Downs Professor of Geography Head of the Department of Geography *Signatures are on file in the Graduate School. ABSTRACT One of the greatest methodological fallacies of the last half century in social research is the belief that science is a particular set of techniques; it is, rather, a state of mind, or attitude, and the organizational condition which allow that attitude to be expressed. (Dingwall 1992: 212, quoted in Lavalli 2000: 114) Realist philosophy reflects the state of mind and realist methodology the organizational condition that allows for an open and sophisticated examination of the complexities of the social world. Yet, realist methodologies are underdeveloped and poorly understood in the field of geography, which limits geographers’ ability to translate their dynamic theories of the social world into as equally dynamic research in practice. This study emphasizes the need for greater investment in the development, communication, and application of realist approaches by demonstrating the value of this approach to the study of persistent poverty. Specifically, the Poverty and Social Impact Analysis (PSIA) framework developed by the World Bank as a means of assessing the distributional impacts of policy reform on vulnerable populations in developing nations is applied to a critical case in the United States––Tunica County, Mississippi, one of the nation’s historically most impoverished counties, previously known as America’s Ethiopia . This comprehensive impact assessment of casino gaming as an economic development strategy in the Tunica area details the questionable politics of class, congruent with the region’s history of race relations, as the primary causal factor in determining the poverty outcome. This is accomplished by using a realist methodology to amass conclusive evidence to argue that despite the success of the casino industry in Tunica County, where much has changed; much has tragically remained the same for the majority of the poor in this region. TABLE OF CONTENTS List of Tables Page v List of Figures viii Acknowledgements x Chapter 1 Introduction 1 Chapter 2 Case Study Overview 21 Chapter 3 Poverty, Economy, and Policy 55 Chapter 4 Understanding Casino Gaming Impacts 76 Chapter 5 Historical Framework 128 Chapter 6 Growth of Gaming 165 Chapter 7 Impacts of Growth in Tunica 208 Chapter 8 Controversies and Contradictions of the Miracle 229 Chapter 9 Beneficiaries 263 Chapter 10 Sin and Savior 284 Chapter 11 Summary Conclusions 314 Appendix A Map Compendium 326 Appendix B Stakeholder Analysis 337 Appendix C Survey Instrument 345 Appendix D Select Frequency Tables 360 iv LIST OF TABLES Table 1.1 Contrasts Between Positivist and Constructivist Page 5 Approaches Table 1.2 Contrast of Realist Philosophy to PSIA Philosophy 13 Table 2.1 Ten Key Elements of Poverty and Social Impact Analysis 28 Table 2.2 Defining Characteristics of Intensive and Extensive 42 Research Table 5.1 Unemployment Rate; United States County Mean, Delta 134 County Mean, Coahoma County (MS), and Tunica County (MS); 1960-1990 Table 5.2 Percent of Persons Below Poverty; United States County 134 Mean, Delta County Mean, Coahoma County (MS), and Tunica County (MS); 1960-1990 Table 5.3 Percent Households by Income Type; Mississippi and 135 Tunica County (MS); 1990 Table 5.4 Percent Race by Sex by Employment Status; Persons 16+ 136 Years Old; Tunica County (MS); 1990 Table 5.5 Percent Race of Householder Income; Black and White 136 Population; Tunica County (MS);1990 Table 5.6 Select Individuals and Household Level Statistics for 153 Comparison; North Tunica CDP (MS) and Town of Tunica (MS); 1990 Table 6.1 Assumptions of the Porter and S&P Models of Competitive 176 Dynamics Table 7.1 Gross Gaming Revenues by Casino Type; 1997 and 2002 210 Table 7.2 Commercial Casino Legalization and Opening Dates, 211 Number in Operation, and Gross Gaming Revenues by State; 2002 Table 7.3 Commercial Casinos; Number Employees, Employee 212 Wages, Gross Gaming Revenue, and Admissions by State; 2003 Table 7.4 Range of Statutory Gaming Tax Rates by State 214 Table 7.5 Casino Employment Comparisons by Number of Casinos 216 per State, 11-State Casino Workforce, State Workforce, and Gaming Industry Workforce; 2003 Table 7.6 Casino Operating History; North River Casino Regions, 220 MS; August 2004 v Table 7.7 Casino Credit, Wager, and Loss Limits by State Page 221 Table 7.8 Casino Number of Employees, Square Footage, and 222 Number of Games; Mississippi Casino Gaming Regions; 2004 Table 7.9 Amenities/Activities in Addition to Gaming; Tunica Co. 223 Casinos, MS; 2004 Table 7.10 Top Five Region/County by Admissions; Adjusted Gross 224 Revenue and AGR per Visitor; Post-1998 Casino Counties; 2001 Table 7.11 State Residence of Casino Visitors by Mississippi Casino 224 Region; 2000 Table 7.12 Top Ten Casino Markets Ranked by Gross Gaming 224 Revenue; 2002 Table 7.13 Yearly Employment Growth Rate and Impact of Casinos; 226 Top Ten Growth Countries out of Total Casino Counties in the U.S. Table 8.1 Growth Rates in Aggregate Industry Base Data; Tunica 233 County IMPLAN Model; 1990-1999 Table 8.2 Growth Rate in Casino Sector Base Data; Tunica County 234 IMPLAN Model; 1990-1999 Table 8.3 Casino Sector Percentage of Total Service Industry; Tunica 234 County IMPLAN Model; Base Data; 1999 Table 8.4 Employment and Income Multipliers; Aggregate Industries; 235 Tunica County IMPLAN Model; 1999 Table 8.5 Economic Diversification by Industry Sectors Gained 1990- 239 1999; Number Employed and Output by Sector 1999; Tunica County, MS Table 8.6 Industry Growth Sectors by Differential Growth Rate in 240 Output; Tunica County, MS; 1990-1999 Table 8.7 Casino Employment by Occupation Comparisons; Casino 244 Workforce, Gaming Industry Workforce, 11-State Casino Workforce, and National Workforce; 2003 Table 8.8 Casino Employment by Occupation Comparisons; Casino 245 Workforce, Gaming Industry Workforce, 11-State Casino Workforce, and National Workforce; White Workforce Population Only; 2003 Table 8.9 Casino Employment by Occupational Comparisons; Casino 246 Workforce, Gaming Industry Workforce, 11-State Casino Workforce, and National Workforce; Black Workforce Population Only; 2003 vi Table 8.10 Per Capita Income by Race/Ethnicity; Tunica Co., Page 250 Mississippi, US; 2000 Table 8.11 Select Distributional Characteristics of Median Household 251 Income and Earnings; Mississippi, Tunica County, North Tunica CDP, and the Town of Tunica; 1989 Table 8.12 County to County Migration Patterns; In-Flow and Out- 253 Flow for Tunica County; 1990-2000 Table 8.13 Commuters from Coahoma, De Soto, and Shelby Counties 255 to Tunica; Total 1970-2000; Average Wage and Workers by Service Industry Table 8.14 Allocation of Gaming Revenue; Tunica County 260 Expenditures; 1992-2001 Table 9.1 New Private Housing Units; Tunica County, MS; 1990, 270 1997, and 2002 Table 9.2 Select Housing Statistics; Tunica County, MS; 2000 270 Table 9.3 Geographic Variation in Median Housing Values; County 273 and Place; Tunica County and Mississippi; 2000 Table 9.4 Types of Crime and Percentages of Total Arrests; Tunica 278 County, MS; 2000 Table 10.1 Descriptives for Work Environment Effects Model 306 Table 10.2 Parameter Estimates for Work Environment Effects Model 307 vii LIST OF FIGURES Figure 2.1 Regional Map of Tunica, Mississippi; Casinos* and Page 24 Vicinity Figure 2.2 Affinity Diagram of Methodological Processes 37 Figure 5.1 Population; Absolute and Cumulative Percent Change; 133 United States, Mississippi, Coahoma County (MS), and Tunica County (MS); 1900-1990 Figure 5.2 Comparative Diversity Index Values and Location 146 Quotients; Tunica County (MS); 1969-1989 Figure 6.1 Porter's Model of Industry Competitive Dynamics and 176 Mahon and McGowan's Social and Political Model of Industry Competitive Political Dynamics Figure 7.1 Cumulative Change in Gross Gaming Revenue; All 210 Gaming and Commercial Casino Gaming; 1993-2003 Figure 7.2 Consumer Spending on Commercial Casino Gaming; 212 U.S.; 1993-2003 Figure 7.3 Per Admission Tax Revenue and Gross Gaming Revenue; 213 State and State Average; 2003 Figure 7.4 Number of Jobs per Million Dollars of Gross Gaming 215 Revenue by Commercial Casino State; 2003 Figure 7.5 Mississippi Delta Casino Counties and Mississippi Casino 219 Regions Figure 7.6 Total Full- and Part-Time Employment; Tunica County, 226 MS; 1990-2000 Figure 8.1 Employment Location Quotients; Farming and 232 Agriculture, Fishing, Forestry Sectors; Tunica County, MS; 1990-1999 Figure 8.2 Employment Location Quotients; Service and All Other 232 Industry Sectors*; Tunica County, MS; 1990-1999 Figure 8.3 Ripple Effect of Service Industry Output; Tunica County; 237 1999 Figure 8.4 Cumulative Percent Change in Labor Force; Tunica 248 County and State of Mississippi; 1990-2001 Figure 8.5 Unemployment Rate; Not Seasonally Adjusted; Tunica 248 County (MS) and State of Mississippi; 1990-2001 Figure 8.6 Mississippi Tax Revenue from Gaming; State Allocation 257 and Local Government Transfers; 1993-2004 viii Figure 8.7 Percentage Distribution of Tunica County Gaming Tax Page 258 Revenue Figure 9.1 Illustrations of Crime, Addiction, and Sexuality 276 ix ACKNOWLEDGEMENTS I express my gratitude to the many individuals who believed in me and my work and in so doing provided intellectual, financial, and personal support during my tenure as a graduate student at Penn State.
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