Can Gambling Really Create Economic Development

1
Can Gambling Really Create Economic Development?

• Randy Childs
• Economist
• Bureau of Business and Economic Research

2
Can Gambling Really Create Economic Development?

• WVU Bureau of Business and Economic Research
• What is an economic impact?
• Mountaineer on the WV economy
• Presque Isle Downs on the Erie economy
• Crime
• Questions

3
Bureau of Business and Economic Research

• Economic Forecasts
• Public Policy
• Economic Development
• Economic Impacts
• Mountaineer
• The Greenbrier
• Tourism

4
What is an economic impact?

• Converts activity to jobs and output
• Compares different activities
• Impact vs. Benefit
• Net Impact vs. Gross Impact

5
Impact of Mountaineer on the West Virginia Economy

• Race track
• Casino
• The Harv
• Spa and Fitness Center
• Conference and Convention Center
• Hotel
• Dining
• Golf

6
Impact of Mountaineer on the West Virginia Economy

• 1998 Impact
• Gross impact
• 1,400 employment impact
• 129 million business volume impact
• 22 million in employee compensation

7
Impact of Presque Isle Downs on the Erie County
Economy

• What will they have?
• Race track, casino, lodging, restaurants, etc.?
• What region are you interested in?
• Erie County? Region? State?
• Where will the visitors come from?
• Will the money being generated be new money for
  the economy?
• What is the multiplier?
• What additional effects will it have on the
  region?
• Social costs and benefits?
• Crime?

8
Will you see an increase in Crime? What have we
seen in West Virginia?
9
Thank You!