Christopher Chadbourne, Philip Walker, and Mark Wolfe
Lincoln Institute of Land Policy
113 Brattle Street, Cambridge, MA 02138-3400
(617) 661-3016
1997. 32 PP. $14.00

   In Gambling, Economic Development, and Historic Preservation, the authors focus on the experiences of five towns in order to illustrate how to use legalized gambling both to improve the local economy and to protect historic resources. This is a relatively unstudied field, and the dearth of research is surprising when one considers that factions in both industry and government are actively promoting legalized gambling - like waterfront development and festival marketplaces before it - as a tool to revitalize communities. This book attempts to fulfill the policy maker's need for independent research and advice.

   The authors found that direct employment by casinos did not have a significant impact on unemployment rates and that most gambling-related economic development is due to leverage. The sectors that grow the most because of the introduction of casinos are lodging, retail, restaurants, and entertainment.

   The amount of leveraged growth in a community is heavily influenced by how much control a community retains over its casinos. Because casinos rely on their real estate for profitability, however, they are more likely than other industries to reject attempts to control their design. For example, the Empress casino in Joliet, Illinois has an Egyptian theme. The casino uses an exotic motif that is purposefully inconsistent with the region's historic design to immerse visitors in "another world". This theme park approach attempts to entice patrons into spending with little restraint. In a similar vein, casinos are traditionally built with limited views of the outside and no clocks. Because casinos try to retain customers until they spend all their disposable income, there is no incentive for them to design a plan that will encourage visitors to patronize other establishments. When one also considers that the Empress is located five miles from downtown Joliet, it is understandable that the authors find that this particular casino has little leverage that benefits the community.

   Other casinos, such as Deadwood in South Dakota, do not take a theme park approach to design, however. The state-enabling law permits gambling only in commercial areas that existed prior to the legalization of gambling, encouraging gambling establishments to locate in downtown commercial buildings. Forced to compete, the small casinos are designed with windows that are open to the street to encourage patronage. This design encourages visitors to wander the town, and as a result it has fostered economic development.

   Regardless of design concerns, there is one thing that can always be said for gambling: it generates an immense amount of revenue. In 1989, Black Hawk, Colorado had revenues of $138,671 and expenses of $77,162. In 1994, after legalizing gambling, the town had revenues of $10 million and expenses to $8.2 million. This influx of capital, combined with the notoriety gained from gambling can put small towns "on the map", giving them the legitimacy they desire. It can provide them with the funds to pursue larger projects and create a presence that encourages redevelopment by private entities. In Davenport, Indiana, the legalization of gambling encouraged the expansion of the convention center and the construction of a high-rise office building and a Radisson Quad City Plaza hotel.

   While the authors offer insights into economic development, their strength lies in their discussion of the impact of gambling on historic preservation. Gambling encourages historic preservation as an inexpensive form of industry advertising. Small towns - such as Deadwood, which has only 2,000 inhabitants - that legalized gambling now are one industry towns. The gambling industry realizes that a small town cannot compete with national gambling centers like Las Vegas and Atlantic City. Instead, the industry capitalizes on the small-town character to draw patrons. In the best of cases, the town and the gambling industry work together in restoring the town and supporting community events. The authors note that in some towns, gambling hall owners contribute more in financial and in-kind contributions than the traditional main street merchants that preceded them.

   The authors have designed and executed an effective study that demonstrates the impact of legalized gambling on small towns. The book is a capable combination of policy paper and how-to guide for city officials and civic boosters who are struggling with how they can best use gambling to protect historical resources and encourage economic development.