Casinos
The question of economic development continues to receive
attention, as officials recognize the need to generate revenue and employment
in Wisconsin. Some studies suggest that building additional casinos improves
the economy, while others argue that the presence of casinos leads to an
increase in crime. Assume for the sake of this assignment that the Wisconsin
Economic Development Board has been approached by two groups:
1) A Wisconsin Native American
tribe, in partnership with private development organizations, seeks to open a
new casino in the greater Milwaukee area, along with a 1,000 room hotel (which
includes restaurants, retail shops, and entertainment).
2) A Wisconsin Native American
tribe seeks permission to install slot machines in local gas
stations/restaurants throughout Wisconsin, where revenue would be shared
between the tribal group and the owners of each establishment where the
machine(s) are located.
For the sake of this assignment, assume that the Wisconsin
Economic Development Board wishes to approve one of these options. The first
option involves a single large facility, and while it could compete with other
larger existing casinos, the Wisconsin Economic Development Board can limit the
construction of this facility to a certain geographic region (you can also
recommend a certain geographic area restriction to the Board). The second
option would involve facilities that are smaller in scale at any one location,
but could bring legal slot machines to towns throughout Wisconsin (which would
also compete, to some degree, with larger casinos).
Your group has been asked to evaluate which of these two
requests the Board should approve. Which option is likely to bring more to
Wisconsin with respect to economic development? Which option is less likely to
result in excess crime and/or habitual gambling problems? In other words, what
might the socioeconomic impact of these two choices be, based on the experience
of other cities? Information about this topic can be found in various online
newspapers, and in reports from other government and private agencies dealing
with economic development and casino gambling.
Assuming the role of a consultant asked to write a proposal for
the State of Wisconsin Economic Development Board, your team will conduct
necessary research and prepare a written proposal that includes your
recommendation as well as implementation considerations for the alternative you
recommend.
