Area casinos creating dramatic ripple effects in local economy, problems
By Denise Allabaugh (Staff Writer) from the times-tribune
Dramatic ripple effects have resulted from Mohegan Sun at Pocono Downs and Mount Airy Casino Resort opening and bringing table games to Northeast Pennsylvania.
Casinos are directly linked to many positive impacts: They have created more than 12,700 jobs statewide, including more than 4,460 for table games; reduced property taxes; generated money for community projects; and spurred economic development. They serve as a tourist and entertainment destination, increasing traffic that benefits nearby businesses.
Casinos also caused negative ripple effects, such as bankruptcies, divorces and mental health problems, according to critics and statistics from the Council on Compulsive Gambling of Pennsylvania. The more money people spend at casinos also leaves less discretionary income for other business, critics argue.
The helpline for the Council on Compulsive Gambling of Pennsylvania has received 2,295 calls this year about gambling problems related to casinos, according to a report provided by executive director Jim Pappas. Statewide, callers reported gambling an average of 55.7 hours a week.
Sun rises
Mohegan Sun at Pocono Downs has been a boon for nearby businesses since the casino opened in 2006 on Route 315 in Plains Twp. with about 2,500 slot machines. It has since added 82 table games, a harness racetrack, 10 restaurants and two bars.
“Traffic has certainly picked up on Route 315,” said Robert Tamburro, whose family owns Isabella Restaurant less than a half-mile away. “We’re seeing new faces.”
Mr. Tamburro, a trustee and partner with real estate business TFP Ltd., which developed Arena Hub and other shopping plazas, said as a result of the increased traffic, his company is moving forward with developments on nearby parcels.
He is seeking tenants for a proposed three-story office building on the 8.5-acre parcel known as Richland 315 next to Isabella Restaurant. A retailer, which Mr. Tamburro declined to identify, and possibly a bank might locate in front of that parcel, he said.
Plans for another parcel known as Richland North, less than a quarter-mile from Mohegan Sun, could include a hotel, banks or restaurants, Mr. Tamburro said. His family’s real estate business also manages Arena Hub and other parcels.
Since table games were added at Mohegan Sun, Jeff Woytowich, owner of the Cafe on Route 315, said business at his restaurant has increased about 15 percent.
More people are staying at the nearby Woodlands Inn and Resort as a result of the casino, said general manager Rick Kornfeld. A shuttle is offered between the casino and the Woodlands during the week until 11 p.m. and on weekends until 2 a.m.
Mohegan Sun plans to build a 300-room hotel on its property, but Mr. Kornfeld sees the casino as an attraction, not competition.
“We have a great rapport with them (Mohegan Sun),” he said. “People from Connecticut stay here. They refer customers to our hotel. It’s a partnership that will continue. They have contractors who have stayed here as well as slot technicians, so it’s a wonderful thing.”
Golden Plains
As the host community for Mohegan Sun, Plains Twp. receives about $2.3 million in gaming money a year, said Ron Filippini, Plains Twp. commissioner chairman.
Thanks to the additional funds, Plains Twp. has increased its Police Department from 14 officers to 19. East Mountain Drive was rebuilt at a cost of $1 million. About 40 other streets were resurfaced and storm sewers were repaired. About $100,000 was spent purchasing new equipment for four playgrounds and $250,000 on a new pumper firetruck. The township also was able to pay off some of its debt and did not have to raise taxes, Mr. Filippini said.
The Commonwealth Financing Authority, created when table games were legalized, is scheduled to announce additional awards to local communities with gaming money later this month.
Mount Airy raises stakes
Like Mohegan Sun, Mount Airy Casino Resort also has led to increased traffic and tourism since it opened in 2007 and recently added 72 table games to its more than 2,500 slot machines, 188 hotel rooms, five restaurants, a spa, salon, nightclub and an 18-hole golf course in Monroe County.
“We have definitely seen an increase in traffic,” said Christina Rodis-Durst, director of public relations for the nearby Desaki hibachi/sushi restaurant and nightclub in Swiftwater. “I think we will continue to see that with the coming of table games and the changing demographic at Mount Airy. I think the table games are drawing more of a fun-loving crowd that may be staying for a longer duration as opposed to short bus trips.”
In anticipation of the launch of table games at Mount Airy in July, Desaki invested in about 10 billboards in Monroe County welcoming casino gamblers.
“What the casino does for all of the businesses in the area is it provides yet another anchor solidifying this area in Monroe County as a true entertainment destination,” Ms. Rodis-Durst said.
Business also has increased at Comfort Inn & Suites in Mount Pocono, about 4 miles away from Mount Airy, said manager Anthony Regan. When Mount Airy fills its hotel rooms, the casino refers customers to stay at the hotel, he said.
Schools in the Pocono Mountain School District abut Mount Airy, and the increased traffic has not created any problems with transportation, said Wendy Frable, spokeswoman for Pocono Mountain. Despite some initial concerns, the casino has been a “good neighbor” to the school district, she said.
Negative impacts
While some businesses are benefiting from the increased traffic casinos are drawing, casinos are taking business away from others.
Jeff Stewart, owner of Alden Manor in Nanticoke, about 14 miles away from Mohegan Sun at Pocono Downs, said some customers have told him they are now eating more often at Mohegan Sun, where they can get free buffets when they earn enough points from the slot machines as well as mail and bus programs.
Jo Jo’s Travelers in Taylor has seen a decrease in travelers to Atlantic City as a result of more people going to Pennsylvania casinos, said manager Gordon Grant. Jo Jo’s Travelers now only offers bus trips to Atlantic City on specific dates. The bus company formerly offered trips to Atlantic City every day.
Casinos also have led to other problems.
In Bucks County, for example, at least five instances were reported of parents leaving their children in cars while they gamble at Parx Casino in Bensalem.
At a news conference Thursday in Bensalem, state Sen. Tommy Tomlinson and state Rep. Gene DiGirolamo, both Republicans from Bucks County, introduced legislation to crack down on adults who leave children unattended while gambling.
The lawmakers said they will introduce bills in the Senate and House to make it a third-degree felony to leave a child under 13 in a motor vehicle without adult supervision. A third-degree felony can result in a prison term of 3½ to seven years and a fine of up to $15,000. Under current law, leaving a child unattended is a misdemeanor of the first degree. They said the measure is needed to serve as a deterrent for gamblers who visit casinos and leave children behind in the parking lot.
The helpline for the Council on Compulsive Gambling of Pennsylvania has received 12,575 calls about gambling problems so far this year, and 2,295 were related to casinos. Of the calls, 642 have reported financial problems, 45 said they have filed for bankruptcy, 354 reported having credit problems, 608 have reported debts, 83 said they were divorced and 97 reported mental health problems.
Dianne M. Berlin of Casino Free PA, a statewide coalition of people and groups opposing casinos in Pennsylvania, said she believes casinos cause more harm than good.
“Gambling does not create new wealth. They continue to extract money from people without giving them any products or services in return like a regular business,” Ms. Berlin said. “When you legalize something this harmful, the legislators knew this would create addicts.”
Ms. Berlin said she believes casinos are leading to more bankruptcies and debts as more people deplete their earnings, savings, retirement funds and their children’s college funds gambling. Offering free drinks is another way casinos bring in more money, she added.
“Alcohol most certainly affects judgment of people. Casino operators know that,” Ms. Berlin said. “They know their judgment is impaired and under those circumstances, the influence of alcohol keeps them gambling longer.”
Casinos are not creating the kind of ripple effects for the economy as people would by buying goods or services that require production, Ms. Berlin said.
“When people put money into the economy, that actually grows a sound economy,” Ms. Berlin said. “Instead we’re growing a scam, and it’s unfortunate.”
Losing it all
For one local resident, problems that resulted from gambling are serious.
The woman, who asked to remain anonymous, is still struggling with debt from gambling at Mohegan Sun.
“As soon as I got a paycheck, I was at the casino,” she said. “Even if I didn’t have a paycheck, I was putting it on a credit card.”
She and a friend once went to a Gamblers Anonymous meeting and since no one else showed up, they went to Mohegan Sun, instead.
“You think you’re going to get ahead but you don’t, and you go the next day to try to make it up and you find yourself further in the hole,” she said. “It’s a cycle. It’s just like being an alcoholic.” Her gambling problem led her to sign up for the Pennsylvania Gaming Control Board’s self-exclusion program, which allows a person to request to be banned from all legalized gaming activities and to be prohibited from collecting winnings, recovering losses or accepting free gifts.
Two years ago, she violated the program, and state police charged her with defiant trespass after she went back to Mohegan Sun to play the slots. Now, she stays away from the casino.
“I would rather keep my husband and my kids,” she said. “He would try to get me out of there. I was bouncing checks and I never did that before.”
A total of 1,639 people statewide have signed up for a self-exclusion program banning themselves from gambling, said Richard McGarvey, spokesman for the state Gaming Control Board.
Casino officials say they take responsible gaming seriously. In addition to participating in the self-exclusion program, responsible gaming brochures are available throughout casinos. Tax dollars the casinos pay to the state help fund compulsive gambling programs. Outside of tax dollars, casinos contribute to the Council on Compulsive Gambling of Pennsylvania each year.
This year, operating casinos throughout the state are required by law to contribute $2 million or 0.002 multiplied by their total gross terminal revenue, whichever is greater, to the Compulsive and Problem Gambling Treatment Fund, said Holli Senior, spokeswoman for the state Health Department.
Gamblers who need help can call the Council on Compulsive Gambling of Pennsylvania’s helpline at 800-GAMBLER.
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