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9 November 2011
The South Carolina Budget for 2012 includes funding for various state agencies such as
The Department of Education, Health and Human Services, Department of Corrections, and The
Arts Commission. The budget will experience a $700 million shortfall. Where will the missing
revenue come from? Will we have to dig into the South Carolina Education Lottery? Will we
have to cut spending on roads, public safety, or maybe cut funding to various social services
programs such as Medicaid or Head Start? As of this writing, South Carolina Governor, Nikki
Haley has already vetoed $2 million that was slated for the State Arts Commission, $80 million
for public education, and another $6 million for educational television. How can we even begin
to imagine a child growing up without experiencing “Sesame Street” or “Mr. Rogers”? The need
for a viable revenue and employment generator is obvious. The solution may be as simple as
Gambling is nothing new to South Carolina. The state government currently has a
gambling monopoly: the lottery. Video poker machines are all over the state, hidden in bars and
restaurants. Big poker games are played throughout the state. Bingo parlors are everywhere.
Casino boats take tourists three miles out to sea where they can gamble their vacation money.
With the exception of a seven dollar per passenger port tax for casino boats, South Carolina
receives no tax revenue from these gambling venues; it’s time to put an end to that. Let’s play
There are several benefits to opening a casino in the Grand Strand area. One of the key
benefits will amount to more tax revenue from tourists. Building a casino in Horry County will
limit the amount of money state residents spend on gambling, while maximizing the amount of
money tourists spend on gambling entertainment. Tourism is what our local economy is
dependent on. The need for year round visitors to our area is evident by the numbers of people
that have been laid off from restaurants, hotels, and golf courses due to the “slow season” which
typically runs from October to March. Aside from gambling, casinos provide additional
entertainment in the form of restaurants, concerts and fine dining. While some people would
argue that a casino would lessen the revenue generated from the South Carolina State Education
Lottery, keep in mind that the lottery revenue is almost solely generated by the residents of South
Carolina themselves. A casino would cater to tourists, not the local residents. My twenty years
of experience in the casino industry leads me to agree with renowned casino industry expert Dr.
Von Hermann’s assertion that “[c]asinos are the latest and best example [of a way to rejuvenate
the local economy]…especially in poor or economically depressed areas…the new jobs they will
create…the new tourists they will attract” (Von Herrmann 6). In making this statement, Dr. Von
Hermann urges policy makers as well as the general public to consider the amount of revenue
and tourism that a proposed casino will generate. Tourism is the heartbeat of Horry County. We
Additional tourism revenue is not the only upside to the casino proposition. Additional
tax revenue is a big plus. Currently, when a person hits a slot jackpot on a casino boat, the state
gets no part of the action, the winner pays not one dime in taxes to the federal or state
government. Also, the state gets no part of the revenue generated from these slot machines. At
the time of this writing; every state that has a casino or casinos operating in its jurisdiction
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receives both a share of the slot revenue from the casino and revenue from the slot player in the
form of a tax on his or her winnings. Revenue will also be generated from the many jobs a
casino will create in the form of state income tax. In a study conducted by Peter D. Hart
Research Associates, Inc. of over 200 community leaders where casinos are operating,
community leaders agreed that casino tax revenue had helped to fund key projects without
Those opposed to casinos argue that social decline in casino communities is almost a
guarantee. “Does America need another… so badly that it is willing to add another social
problem to the list that it already deals with, such as crime, alcoholism, teen pregnancy, illegal
drug use, and so on?” (Grinols 51). Facts found in an unbiased study commissioned by the US
Senate and House of Representatives dispute the opposition. Crime increases as the population
increases, just as crime increased in Orlando, Florida, after Walt Disney World opened its gates
to the public. One way to help with this potential problem is to require the casino operator to pay
a public safety tax which would pay the salary for additional police officers. The opposition to
casinos also argues that betting on games of chance and skill is immoral. If the opposition
wishes to play the morality card, we can trump them with the lottery card. Aside from slot
machines, most casino games are games of skill not chance. The state lottery is a game of
chance, a game geared towards the wallets of our residents, not the wallets of our tourists.
During the month of September 2011 there were 14,255 unemployed Horry County
residents, some of which are part of the 25,395 households receiving food stamp benefits
(Insights 3). The need for more employment opportunities in Horry County is evidenced by the
number of people who applied for unemployment during the month of September 2011 alone.
Bringing a casino into Horry County would create many jobs within the casino and also with
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area merchants and manufacturers. With an economic development contract between the state
and county and whoever builds and operates a casino here, the casino would be required to hire
from the area and utilize local and state merchants for their day to day needs. Those needs would
include items such as: uniforms; fresh food; printing needs; banking; beverages; cups; etc. There
will be a need for these products and services from local merchants, suppliers, and vendors.
Subsequently, there will also be a need for more employees to manufacture these items and fill
these orders.
It is my personal experience that the casino industry offers many benefits: above average
wages; above average medical benefits; tuition reimbursement; 401k retirement plans; industry
training; and paid vacations. The opportunity to learn new employment skills would be available
to local residents who become employed at the casino. Since most casinos use an industry
standard approach; should an employee choose to relocate, these new skills can be used at
virtually any casino in the United States. The jobs created by the casino alone would help to
increase consumer spending, which would benefit area merchants. The quality of life would also
improve for many residents. With the added job security of working for a casino, employees
may feel more comfortable buying big ticket items such as homes and cars. There may even be
fewer home foreclosures. From January to September of 2011 there have been 26,677 home
foreclosures in South Carolina. We need to put an end to or at least lessen the number of families
that are forced to give up their homes because they can’t find a job, or because they have to
choose between paying a mortgage and buying food. With these new employment opportunities,
there would be fewer area residents filing unemployment claims, needing food assistance, and
Perhaps we should study the casino impact analysis which was commissioned by the
United States Senate and House of Representatives. This study found that in areas where a
casino operated, there was a significant drop in welfare, food stamp, and unemployment
payments. There was also a significant drop in the number of people needing public housing
assistance. This same study showed a forty three percent rise in earnings in the lodging and hotel
sectors. “Casinos are an important source of entertainment, jobs, and income” (National
Gambling Impact Study Commission Act 2.6). Strong words coming from a commission that
employment and tourism generator. A casino would stimulate our economy in so many different
ways. A casino would create jobs, revenue, and increase tourism not only for Horry County but
Works Cited
<http://dew.sc.gov/news/Insights_September_2011.pdf>.
“National Gambling Impact Study Commission Act”. Pub. L. 104-169. Stat. 3 Aug. 1996. The
National Gambling Impact Study Commission. U.S Government Printing Office, 18 June
Grinols, Earl. "Testimony before the House Committee on Small Business," Gambling: Who
Wins? Grinols Testimony Opposing the Gambling Industry. Ed. Rita Runchock. Detroit:
Von Herrmann, Denise. Big Gamble: The Politics of Lottery and Casino Expansion. Greenwood
whitepapers/community_leaders_perceptions_white_paper.pdf>.