“The evils of racism, economic exploitation and militarism are all tied together. … You can’t get rid of one without getting rid of the others.” — the Rev. Martin Luther King Jr.
In 2022, as new casinos came online, there was a 57% increase of reported calls to the Virginia Gambling Helpline. Callers reported casino slot machines and casino games as primary causes. Seventy-eight percent reported gambling away their housing funds, savings and taking on excessive credit card debt.
This Tuesday, Richmond votes on a casino — a business that profits by turning community members’ dollars into pennies and crippling debt. Despite the divisive narratives, the difference between yes-voters and no-voters is not melanin, or even means. It is a difference of model.
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According to projections from a consultant hired by the city in 2021, the proposed casino would require $72 million of gambling losses per year — from Richmonders, specifically — to generate the promised $30 million in tax revenues. This is a predatory model of robbing Peter to pay Paul. And it is a net loss.
A study by National Gambling Impact Study Commission found 80% of casino revenues come from households earning less than $50,000 per year. Do we believe we can heal South Side by luring the economically disadvantaged with the false hope of a jackpot?
A majority already voted no on this referendum, and here is why we will do so again next week:
Net loss economics
A 2011 Baylor University study calculated each problem gambler generates an annual cost of $9,393. Considering that some experts predict between 5% and 10% of Virginians may be at risk for problem gambling, and you multiply 7.5% of Richmonders who may be at risk for problem gambling (17,204 total citizens), the municipal cost would be $161,597,172 annually. If you include surrounding counties (1,341,227 citizens), it balloons to $944,860,656. These dizzying, bleak numbers — approaching an annual cost to the Greater Richmond region of $1 billion — may explain why the casino owners are hiding their financials.
Unjust revenue generation
In 2016, The Atlantic cited nine independent studies that showed 30% to 60% of casino revenue comes from problem gamblers at casinos. Casinos are designed to prey on addiction, economic instability and those in need of mental health services.
A study from the University of Massachusetts found people who identify as Black were four times more likely to experience gambling harms. Those with depression, and those served alcohol while gambling, were at increased risk. Individuals with high school diplomas were three times more likely to experience harm than those with college degrees.
Within two years of a casino opening in Plainville, Massachusetts, researchers found a 50% reduction in citizens who perceived the casino as beneficial.
Unhealthy outcomes
Recently, the American Psychiatric Association listed gambling addiction as a substance abuse. Historically, crack, heroin and other substances were used to disrupt Black communities, weaken Black families and sabotage long-term economic uplift. Gambling now sits alongside them.
As Del. Dawn Adams, D-Richmond, said recently, these referendums were not designed for casino-funded politicians to run them until their desired result. We must remember the historical destruction of Jackson Ward was opposed by two referendums that Richmond leadership refused to acknowledge. Legal doesn’t mean just.
Unnecessary for investing in South Side
Richmond City Council received $154 million in federal funds to address issues such as access to child care. These funds can be spent until December 2026, but so far only 1% has been allocated to child care and, of that 1%, there’s been no sign of it in South Side. Why is this?
Recently approved state legislation requiring Airbnb rentals to pay hotel taxes can also be used to fund child care and the education trust fund in perpetuity.
The city could also allocate incoming revenues from previously uncollected real estate taxes from the historic tax abatement program — which are expected to generate more than $20 million over the next five years — to pay for child care and investment in South Side.
If you want to find jobs and opportunities for South Side, we would start with the $700 million worth of city contracts the mayor and City Council award that still go to 95% white-owned businesses.
If Urban One wants to bring a sound stage, hotel, park, gardens and jobs to South Side, it doesn’t need a casino. The law doesn’t require us to vote for resorts or gardens.
The notion that this casino is the only or best solution for South Side is false. Richmond and South Side don’t need a Grand Casino. We need a grand commitment to a just and equitable revenue allocation process. Richmond can develop South Side by invoking Maggie Walker’s empowering model of deposits, instead of this casino’s exploitative model of withdrawals. It’s time to upgrade South Side from the blackjack table to the bargaining table. We don’t need vices to do what’s virtuous for South Richmond, but we do need new values.
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Allan-Charles Chipman, former 6th District City Council candidate and executive director of Initiatives of Change USA. Contact Chipman at [email protected].
David Dominique is a writer, musician and concerned community member living in Richmond. Contact Dominique at [email protected].