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GAMBLING: Who's Really at Risk?

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GAMBLING: Who's Really at Risk? GAMBLING: Who's really at risk? The connection between gambling and crime CONSTANTINE & ABORN ADVISORY SERVICES 450 Lexington Avenue New York, NY 10017 212-350-2781 www.caasny.com Richard M. Aborn, principal author John V. Bennett, researcher May 19, 2005 TABLE OF CONTENTS EXECUTIVE SUMMARY . 1 PART ONE: . 10 INTRODUCTION PART TWO: . 11 NATIONAL STUDIES AND OVERVIEW OF TRENDS PART THREE: . 21 EXAMINATION OF CRIME TRENDS IN COMMUNITIES WHERE CASINOS HAVE BEEN ESTABLISHED CONCLUSION: . 32 BIOGRAPHY: RICHARD ABORN . 34 ENDNOTES: . 35 BIBLIOGRAPHY: . 40 EXECUTIVE SUMMARY New York State is considering permitting introducing gambling and offers that as gambling in Sullivan County. The process of guidance as to what Sullivan County - and making this decision requires consideration its neighboring communities - can of the many factors that will have an impact anticipate. on the quality of life if gambling is permitted. The connection between casino gambling and crime is an important public policy issue No one would deny that this is a decision not just for a community considering that will have wide and deep ramifications allowing casinos to operate locally, but for lasting for decades – with an impact not adjoining communities as well. As this confined to Sullivan County, but affecting report discusses, while a few studies have adjoining communities as well. One of the opined that there is too little or too many factors that must be considered is the inconclusive data to reach specific impact that permitting casino gambling will conclusions as to the impact of gambling on have on crime. Is it predictable that crime crime in a community, many respected will increase in Sullivan County should scholars, researchers and law enforcement casino gambling be permitted? If there is an officials have determined that the increase, what sorts of crime or crimes will introduction of casino gambling into a rise? Will only Sullivan County be affected community has a significant impact on or will adjoining communities also crime and not just locally, but in the experience an increase in criminal activity? surrounding region as well. Will any rise in crime be merely the result of the inevitable increase in tourism or are Incidents of Violent Crime in Mississippi Increased-- Will the same happen in Sullivan County? there characteristics uniquely associated with gambling that will trigger particular types of crime? What has been the 8,887 experience of other communities that have 7,413 permitted gambling? 5,072 5,416 Specifically, this report examines the impact on crime experienced by other communities Gulfport Biloxi during the first decade or so after they have 1993 1994 permitted gambling. It does not, at this stage, make projections about what Sullivan County should anticipate. It does, however, examine what has occurred in other This report will examine the experience of communities within the first years after communities where gambling has been Gambling: Who’s Really at Risk? 1 introduced to illustrate the expected impact 1994. The number of violent crimes in and extent of casino-related crime in Biloxi went from 5,072 in 1993 to 7,413 communities considering introducing in 1994, while rising in Gulfport from gambling. 5,416 to 8,887.2 One of the best ways to anticipate what <> Bank robberies occurred in 16 banks might happen in Sullivan County, should along "casino row" in 1993, a 300% casino gambling be permitted, is to review increase over the previous year and the experience of other communities that breaking an all-time record. 3 allowed gambling to be introduced. <> Notably, between 1988 and 1993, Gulfport's overall crime rate had fallen 1) Crime in Local Communities: the 42%. Gulfport's first casino opened in Track Record May, 1993. 4 Gulfport and Biloxi, Mississippi <> Alcohol-related crime, from DUI’s to Riverboat casino gambling was introduced family violence, became a major to the Mississippi Gulf Coast in 1992. A problem. A police official explained look at what happened in two of the cities - "what people don't realize is that casinos Gulfport and Biloxi - that are essentially nothing permitted gambling must more than huge bars . be considered before Crime rates .gamblers get as much to deciding to proceed with including bank drink as they want free of gambling in Sullivan robberies, alcohol charge, 24-hours a day, County. related accidents, and then they leave, get in cars, and get on the road . The impact of casinos in prostitution and . the casinos admit they Biloxi and Gulfport drug arrests all use alcohol as a tool." 5 produced the following increased. results on crime rates, <> The Chief of Police according to a report reported that "every crime issued by the Maryland that is fueled by alcohol Attorney General: and drugs is way up." 6 <> By 1994, crime <> Alcohol-related increases were seen in accidents rose 101% every category, with murder, rape, between the first seven months of 1993 robbery and car theft at least doubling.1 and the same period the year before. 7 <> Ten categories of violent crime rose by <> Prostitution arrests increased 85% 64% in Gulfport and 46% in Biloxi in Gambling: Who’s Really at Risk? 2 between 1992 and 1994 and the Gulfport crimes per 100,000 residents of Biloxi and Police Department investigated six escort 8,102 crimes per 100,000 residents in services on prostitution charges. 8 Gulfport. 12b <> Drug arrests jumped by 152% between This phenomenon of rapidly climbing crime 1992 and 1994. Police Department subsequent to the introduction of gambling officials identified heroin, LSD, cocaine, has not been limited to Biloxi and Gulfport. ecstasy, and other drugs as growing more Virtually every other community that has prevalent. 9 permitted gambling has seen a similar increase. <> Insurance fraud rose, with gamblers "falsely report[ing] that they were abducted, robbed or both." 10 Introducing <> Fraud and embezzlement increased gambling in sharply. The Chief of Police stated that Atlantic City led to "[i]n one week we had 15 cases of internal theft and embezzlement, 90% of major increases in it gambling related . they're getting in crime. trouble, and they're trying to win it back." 11 <> Pawn shops doubled in size and tripled in number. They are open 24 hours, and some are "Car Hocks" where a gambler can "hock [his] car for a few hundred dollars in a hurry." 12 Atlantic City, New Jersey It is well-known that the introduction of After the release of the Attorney General’s gambling in Atlantic City led to major report, crime rose still further in Gulfport increases in crime. A report by the Maryland and Biloxi, reaching 18,500 major crimes Attorney General notes that “In the first ten reported in 1999. 12a years the city had casinos, the total crime index rose a staggering 258%. Non-violent By 2002, the number of major crimes index crimes increased 272%. Between 1978 reported in Biloxi and Gulfport had fallen and 1993, violent crime rose by 199%, and from the peak seen in 1999, to 9,670, larceny skyrocketed 481%.”13 according to FBI data. However, both Biloxi and Gulfport’s crime rates exceed the state And this increase in crime was not contained average for Mississippi. In the state as a within Atlantic City; rather, it effected whole, there were 4,159 crimes per 100,000 neighboring communities as well. population. Meanwhile, there were 7,534 Gambling: Who’s Really at Risk? 3 Crime Rates in Atlantic City Compared to Cities with no Gambling Atlantic City's high crime level also persists despite the fact that it has three times as White Plains 2033 many police officers per capita compared New York City 3100 with the average for Northeastern U.S. cities. Atlantic City's police force has 10.12 Boston 5986 officers per thousand population, compared Philadelphia 6583 to the average of 2.7 officers per thousand population in the Northeast. By further Rochester 7622 comparison, there are 4.65 officers per Atlantic City 12,924 thousand in New York City and 3.66 officers per thousand in Orlando. 14b Nat'l Average 4,119 Connecticut In 1992, Foxwoods Resort Casino began operations in Ledyard, Connecticut, a town NOTE – All figures are per 100,000 population with roughly 15,000 residents in a rural and (Source: FBI UCR data, 2002) isolated area. A 2000 study by the Connecticut Center for Economic Analysis Another study looking at the “spillover” provided statistics on crime in the town of effect of crime on adjoining communities Ledyard since the casino opened. The found that Atlantic City’s “increases in incidence of crime in the community crime extended outward at least 30 miles to increased 532.2 percent between 1990 and suburban areas and to areas along highways 1998, going from 214 in 1990, peaking at that extended toward New York and 1773 in 1995 and then declining to 1353 in Philadelphia.” 14 1998.15 Current Crime Rates in Atlantic City Moreover, crime, much like with Atlantic Compared to Cities without Gambling: City and its neighboring communities, has also increased in neighboring communities Although crime rates in Atlantic City did both in Connecticut and across the border in eventually fall off after the dramatic nearby Rhode Island.16 increases seen in the first ten years after gambling was introduced, the current crime By 2002, the total number of crimes had rate per 100,000 residents is still far above fallen in Ledyard compared to the 1995 the national average. In 2002, the city peak, with 637 major crimes reported, but recorded 12,924 crimes per 100,000 the crime rate was still far above the population. 14a That compares with 4,119 statewide average.
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