Gambling: More money or more problems

By Kevin Coffey
Assistant News Editor

Everyone agrees that expanded gambling in Nebraska will bring with it gambling problems for college students. The disagreement lies in the degree of this problem.

Nebraskans will have the opportunity to vote on two proposals to bring casinos to Nebraska on Election Day.
Amendment 3 would allow two casinos in Nebraska and Initiatives 417-420 would allow two casinos and up to 4,900 slot and video poker machines in the state.

“ The two highest [gambling] addiction categories are seniors and young people,” said Pat Loontjer, director of Gambling With the Good Life, which is against any expanded gambling in Nebraska.

In reference to choosing between the two proposals, Loontjer said, “ It’s like offering two glasses of poison — one fast-acting, one slow — and they’ll both kill you.”

Sen. DiAnna Schimek of Nebraska, a supporter of Amendment 3, said that gambling addictions are a reality for college students. Schimek said states typically have between 3 and 4 percent problem gamblers, and Nebraska is already at that rate.

Dr. Ernie Goss, professor of Economics, said that students already have access to casinos in Council Bluffs, Iowa. But he also said, “The closer they are, the more impact they will have.”

Loontjer told the story of a University of Nebraska-Lincoln student who volunteered to help Gambling With the Good Life. When she asked him why he wanted to help, he replied that he went to the riverboat casinos on his 21st birthday. Since that day, he had accumulated $200,000 in debt.

“ It’s an addiction, and the last thing your campus needs is another addiction,” Loontjer said.

Studies listed on Gambling With the Good Life’s Web site show that legalized gambling brings with it increases in divorce, abuse, embezzlement, insurance fraud, bankruptcy, welfare costs, police costs and crime.

The Gambling With the Good Life’s Web site lists about 150 names of people who support their cause and are against expanded gambling in Nebraska. The list includes Elden Curtiss, Archbishop of Omaha; Hal Daub, former Omaha mayor; Tim Dunning, Douglas County Sheriff; Stephani Johanns, first lady of Nebraska; Peter Kotsiopulos, former mayor of Kearney, Neb.; Kay Orr, former Nebraska governor and Chuck Sigerson, president of the Omaha City Council.

“ We are neither for or against expanded gambling,” said Jerry Bauerkemper, the executive director of the Nebraska Council on Compulsive Gambling. His main concern was receiving the funding necessary to treat problem gamblers.

Placing a casino in Omaha would probably mean it would go on the riverfront near the Qwest Center Omaha, only blocks east of Creighton’s campus. Initiative 420 effectively puts the casino in Omaha and east of 24th street.

One common argument supporting expanding gambling in Nebraska is that it would retain the money that otherwise would go to Iowa casinos. A study for the Iowa Racing and Gaming Commission estimated that about $335.7 million was spent on gambling in Iowa by non-Iowans.

“ There are so many forms of gambling in Nebraska,” Schimek said. “If they already want to gamble, they already have the opportunity.”

Besides gambling problems, some cite the proliferation of tribal casinos as another issue. “There will be tribal casinos in Nebraska if either statute is passed,” Goss said.
Schimek and Loontjer agree that there would be tribal casinos in Nebraska. Loontjer is concerned that those casinos would be unregulated and untaxed, and allow 18-year-olds to gamble. Schimek thinks that there should be a state law against allowing anyone under 21 into a casino.

“ There are seven tribes in Michigan and 17 casinos, and more are being built,” Schimek said.

Goss and law professor Ed Morse have created their own proposal as an alternative to the amendment and initiatives. Goss and Morse’s proposal would give tribes in Nebraska exclusive rights to build and operate casinos. The state of Connecticut has similar.

Goss believes that both the amendment and the initiatives will increase tax collections and tax payments. He also said that the cost of crime would go up.
“ There is potential for positive and negative economic growth,” Goss said.

“ It’s such an important issue for college students,” Loontjer said. “Once we change the constitution, we’ll open up a can of worms that we’ll never shut again.”
Bauerkemper said that for assistance with a gambling problem, people can call 800-522-4700, 24 hours per day, and get help.