New casinos proposed for Kenosha, Sheboygan, Beloit and Shullsburg would mostly pull gamblers away from other parts of Wisconsin and be of no significant overall benefit to state coffers, according to a new study by a University of Wisconsin-Green Bay professor for the Wisconsin Policy Research Institute (WPRI).
Additional casinos would be unlikely to increase the overall amount of gambling, payments to the state, or jobs, according to the analysis by professor Daniel Alesch.
“It’s essentially a saturated market,” said Alesch. “So any revenue for a new casino is likely to come from another tribe and community. There would be no net gain for the people of the state – just a transfer of jobs and money from one place to another.”
There are currently Native American casinos in 17 of Wisconsin’s 72 counties, and the tribes that run them contribute approximately $100 million per year to the state. Payments are generally tied to tribal casino profits.
The gross handle – or total amount wagered – in Wisconsin decreased from $16.18 billion in 2007 to $15.31 billion in 2011, according to the study.
“The decrease is partly due to the recession,” said Alesch. “But the analysis shows that there are already enough casinos in Wisconsin and along the border in other states to satisfy demand.”
Virtually everyone in Wisconsin is currently within a two-hour drive of a casino, according to the study. In addition to casinos in Wisconsin, there are a dozen casinos along the border in Michigan, Illinois, Iowa and Minnesota.
Proposals for new casinos in Wisconsin must be reviewed by the Department of Interior’s Bureau of Indian Affairs, but the state’s governor has final authority.
