News: Gambling on College

If you want your child to go to college but think the cost is prohibitive, no worries. Passing Issue 3, known by its shorthand Learn and Earn, could ensure that your kindergartener has all the money she needs by the time she gets out of high school — as long as she doesn’t graduate before 2012, chooses a state college in Ohio and gambling takes off in the state.

There are a few other details voters need to know in order to make an informed decision Nov. 7.

Some argue the Ohio Legacy Fund, a coalition of racetrack and other business interests, used shady tactics to collect signatures for a proposed constitutional amendment legalizing gambling. Many of those circulating ballot petitions merely asked people if they wanted to set up college scholarships for Ohio children. Even though the language of the amendment contains a lot of information about gambling, it begins with an emphasis on promoting education.

“For the purpose of inspiring students to aspire to college at an early age, to improve students’ academic preparation and to make college affordable for students and their families, the Ohio Board of Regents shall award undergraduate higher education scholarships and tuition grants for United States citizens who are residents of this state commencing with the first high school class graduating two years following the approval of this amendment.”

Beware the details
The amendment aims to make higher education affordable, according to Robin Hepler, spokeswoman for Vote Yes on Issue 3.

“What it does is removes the number one barrier to a college education, which is the finance,” she says. “In higher ed, we’re ranked 49th out of 50 states in affordability.

I think that it is the best solution on the table right now to handle the education crisis. I think most people instinctively say, ‘We shouldn’t have to turn to gambling to fund education.’ In a perfect world, we wouldn’t. The Statehouse would have taken care of this. But they haven’t.”

Backers claim Issue 3 is about making college accessible to all. But the language of the amendment makes that claim suspect, according to Rob Walgate, outreach director for Ohio Policy Roundtable. He says the poorly written requirements mean every child won’t get college money.

“You have no idea how it’s going to play out,” Walgate says. “Every time we ask a question or propose a scenario, they say, ‘The Board of Regents will iron that out.’ Well, the Board of Regents can only work within the parameters of the language they’re given.

“A perfect example is the part where it says the top five percent will get scholarships and tuition grants for the first 12 years, two years after the amendments passed. We’re saying, ‘The top 5 percent are already getting college scholarships.’ Learn and Earn says, ‘We’ll move it down to 5.1, 5.2 .’ According to the language of the constitution, you can’t do that. It says the top 5 percent. If you don’t give it to the top 5 percent only, there’s gonna be litigation.”

The Learn and Earn Web site (www.ohiolearnandearn.com) boasts, “A Lot of Good Will Come of This” and focuses on education; only one sentence on the first page mentions gambling. Hepler notes that the fact book shows how much money the state would reap in new jobs, real estate taxes and payroll taxes.

The amendment would allow seven existing racetracks and two Cleveland gaming facilities, yet to be constructed, to add slot machine gambling up to 24 hours a day, seven days a week. The projected annual revenue for these sites, once fully operational, is more than $2.8 billion, with 45 percent going “to the people of Ohio” in the form of tuition and scholarship contributions, taxes for local municipalities for economic development and capital improvements and gambling addiction services. The rest goes to the companies who will operate the gaming establishments.

The biggest beneficiaries, however, will be a small group of companies that own and operate the existing racetracks in the state.

“This creates a gambling monopoly for nine people,” Walgate says. “Even pro-gambling business owners across this state are against this proposal because of the way it sets up a monopoly that’s unfair. There’s gonna be absolutely no competition. In other states, the bidding process to obtain the licenses — people say they’re worth hundreds of millions of dollars.”

Like smoking crack
While supporters of gambling say slots will help recapture local money lost to other states and spur economic development, they fail to mention that the majority of the new jobs created are low-skill. Moreover, problems related to casinos cost communities money: Increased crime translates into more police, public defenders and support services while gambling addiction increases the needs for social services.

Walgate points to the study, Casinos, Crime, and Community Costs by Earl L. Grinols and David B. Mustard.

“The Grinols and Mustard study … gives some startling statistics and the costs communities bear,” Walgate says. “They said crime increased from three to 30 percent in various categories.”

Where casinos open, rape, aggravated assaults, burglary, robbery, larceny and auto theft increase; only the murder rate is unaffected, according to the study.

Opponents of Issue 3 (www.ohiolearnandearn.org) want people to consider the real impact of gambling. When he talks to people, Walgate says they worry about the human cost.

“Its ramifications on the 109,000 lives that they (supporters) conceded will be destroyed, that scares people to know the addiction aspect is the real thing,” he says. “This form of gambling is typically referred to as the crack cocaine of gambling by the experts in the business because it’s the most addictive form. There’s not really any thought process. It’s random luck.”

Money is the common thread throughout these arguments.

Does removing the financial barrier to higher education inspire kids?

“Most of research tells us, in an urban setting, kids opt out of college before grade four,” Hepler says. “Knowing the financial barrier is not there, how will that affect every elementary teacher in the state? How will that affect every hardworking parent? I think it’s going to be a significant impact. I think they’ll go into it with, ‘My kid’s going to college. Now what do I need to do from age 3 or 4 to help them get ready?’ ”

The potential payoff from legalized gambling won’t offset the problems it causes, Walgate says.

“This is putting 31,500 slot machines in the state of Ohio,” he says. “Socially, when you take a look at what happens to other communities, it’s not worth it. We’re talking about 109,000 addicts. That’s lives destroyed, families ruined, communities devastated.

“Look at all the things the gambling industry has promised and not delivered. It’s a bad investment.”

This article appears in Oct 4-10, 2006.