But while a $400 million
new casino may sound like a dream to those who want flashy entertainment and
modernization in Sacramento’s backyard, there is growing concern it could end
up being a nightmare for homeowners, who may see their property values decline.
That was the conclusion of
several studies that measured the effect of casinos on local economies, and
specifically residential housing prices.
But there are great hopes
that the ambitious Wilton Rancheria project, slated for a 35.9-acre lot at
Highway 99 and Kammerer Road, will do just the opposite, by providing hundreds
or even thousands of jobs and boost the local tax base. They’re definitely
aiming for a Vegas-like state of the art entertainment complex, as the plans
laid out July 6 included a facility with 2,000 slot machines, 84 gaming tables,
a 12-story hotel with 302 rooms, fitness club, luxury spa, outdoor pool, a
30,000-square-foot convention space/banquet area, and plenty of upscale restaurants.
There is even talk of an outdoor concert amphitheater and plenty of retail
shops being added to the plans.
No matter how high the
hopes of Elk Grove residents, there is evidence to the contrary – that in the
long term, the presence of a casino hurts communities, and property values.
One of the most conclusive
studies was based on data collected by the National Association of Realtors in
a 2015 report. Their conclusion? The presence of a casino has an
"unambiguously negative” impact on local property values. In fact,
neighborhoods within 10 miles of a casino register higher rates of home
foreclosures and other community erosion.
Part of the blame is due
to the shifting face of gambling in the United States. Instead of luxury, free
spending meccas like Las Vegas, the modern gaming industry relies on a far
different demographic. Instead of high rollers and weekend warriors, casinos
actually garner a significant amount of business (losses) from a small portion
of returning customers, who are, unfortunately, trending older and poorer than
ever before.
In fact, the fastest
growing demographic of “problem gamblers” is older women who are on low fixed
incomes. Far from our perception of the tuxedo and cocktail dress crowd,
low-income workers and retirees provide the vast majority of customers for the
modern casino industry. A Canadian study found that 75% of casino customers who
play only occasionally provide only 4% of casino revenues. And further studies
estimate that 40 to 60% of casino revenues are earned from problem gamblers.
These same studies point
to a clear effect on their surrounding communities, furthering income
inequality and bringing higher rates of crime, economic distress, alcohol and
drug dependency, domestic violence, and yes, a general decrease in home prices.
But Wilton Rancheria
Tribal Chair Raymond “Chuckie” Hitchcock addressed those concerns in the July 6
meeting, sharing his vision for a more sophisticated, well-planned casino that
will levy those issues.
Hitchcock spoke about
positive impact of jobs in Elk Grove, with the project expecting to bring in
1,500 – 2,000 construction jobs during the two-year build out, and then an
additional 1,750 – 2,000 workers.
“It’s going to bring many jobs to our tribal
members,” said Hitchcock. “It’s going to bring jobs to Elk Grove residents,
south Sacramento residents and to other outlying businesses, as well.”
As for crime, Hitchcock
believes there is a plan to thwart ay increases due to the presence of the
casino. “This is going to be a very high profile place,” said Hitchcock. “We’re
going to have high-tech surveillance, we’re going to have tribal-trained law
enforcement officials that have law enforcement experience and a military
background. They’re going to work cohesively with the city of Elk Grove Police
Department to make sure that patrons are safe.”
Hitchcock even addressed
the concern of increased traffic congestion, explaining that casino business
usually runs busiest on nights and weekends – not peak commute hours.
While those talking points
are well-thought and probably well-intentioned, we can’t help but look to
gambling hotbeds like Atlantic City that are virtually ghost towns and
near-slums now, and the fact that nationally, casino revenues have been down an
average of 7.5% per annum since 2014.
Hitchcock and advocates
for the Wilton Rancheria project say that a presence of high-end retail shops,
restaurants, concerts, etc. will offset that, but studies show that regular
casino patrons spend only paltry sums at neighboring businesses, shops, and
restaurants. Surely, Elk Grove can’t rely on hopes of out-of-town visitors or
significant tourism for an influx into the local economy.
Apparently, not everyone
is caught up in the excitement of a new casino in Elk Grove, as an anonymous
party is flooding the city with fliers that criticize Elk Grove Mayor Gray
Davis for unilaterally supporting the tribe’s plan, as well as voicing
opposition against the casino.
But Davis, in attendance at
the July 6 meeting and at one point asked where he stands on the issue,
responded diplomatically.
“At this point, I’m not
taking a position,” said Davis. “I’m here to listen like you all.” Hopefully,
he will listen to the right people – and studies – that show the short burst of
prosperity new casinos bring are usually met with prolonged community decline –
and dropping home values.
