Gambling News by Gambling Headquarters

The Rendell administration and a leading financial forecasting company it
hired disagree on the degree to which casino gambling will be an economic
boost for Pennsylvania. James Diffley, the group managing director for
multinational forecasting company Global Insight, said casino gambling's
impact would be "muted," despite an estimated 12,000 jobs the industry is
expected to produce. Diffley told lawmakers at a House Appropriations budget
hearing that state residents who gamble will probably spend less on other
leisure and entertainment activities, including the state lottery, which is
the major source of income for senior citizen programs. "The net economic
impact will be somewhat muted," said Diffley. "The casino spending of state
residents, and gambling losses, serve as a substitute for other leisure and
entertainment, including the state lottery. That displaced spending will
reduce demand at other Pennsylvania businesses." Global Insight is hired by
the Rendell Administration to do yearly economic forecasting. But the
newly-appointed secretary of revenue, Thomas Wolf, contradicted that
analysis saying gamblers and lottery players are "two different types of
customers" and competition with gambling dollars are likely to come from out
of state. He said gamblers are destination customers, while lottery players
buy at point of sale. "We really believe most competition in gaming comes
from outside Pennsylvania," Wolf said. "And to the extent the people who
really lose out to Pennsylvania gaming will be those venues in West
Virginia, New Jersey and other states surrounding Pennsylvania."
Pennsylvania is the only state in the nation that diverts all its lottery
proceeds to programs for seniors.