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Too hard to welcome good guy, bad slots

Jack Markowitz
| Sunday, December 24, 2006 5:00 a.m.
It is regrettable that Don Barden's new business coming to Pittsburgh cannot be wished well. Barden is an African-American entrepreneur from humble beginnings in Detroit. It would be a pleasure to welcome him as a role model on many levels. But he is up against an iron law of his business. Gambling is a zero-sum transfer of wealth. To the extent that Barden's slot machine casino becomes a winner when it opens in March 2008, his customers will be losers. And as losers, you have to wish there will be a minimum of them. Mainly they will be ourselves, the people of Pittsburgh. And on average, our lower- and middle-income people. They will lose at Barden's computerized coin-eating machinery and "the house" will win. That's how this industry thrives. In fact, only because the Majestic Star Casino is practically guaranteed to win so much, a projected $484 million a year -- while the lower- and middle-income among us lose exactly that much -- will the casino be able to pay taxes and contribute funds to selected public urgencies. Chiefly, it seems, $7.5 million a year for a new hockey arena. It could be you think a hockey place is what Pittsburgh needs most. And that taking disposable income from a segment of the population is the best or only way to get it. If so, setting 5,000 slot machines programmed to "tax" the customers is sound public policy, never mind that they will be predominantly people who aren't rolling in it. Because it's a cinch the rich won't be building the Penguins a new ice palace. Nor the politicians or news media. Nor frankly, practically anyone very well educated. Because to put it bluntly, those people are too smart to play the slots. Too sophisticated. They realize they would lose and that, after all, plenty of others who don't know any better will play; the same who stand in lines to buy lottery tickets. "People will find a way to gamble," they philosophize. Yes, the politicians will contribute a ceremonial quarter or two for picture-taking, and they'll act as if this glittering candle-cake on the North Shore spells new hope for Pittsburgh. In past eras, the agents of government tried, even if misguidedly at times, to "improve" the citizenry. Public schools stemmed from that impulse. Today, government is obsessed with a new revenue source. "Gaming" fits the bill. Never mind the out-of-sight bleeding of family savings and revenues to competing businesses. In time, throughout Barden's new operating territory, after the initial hoopla shamelessly detailed by news media, parents will be hoping their kids do not grow up to patronize his place of business. Teachers in classrooms will be warning students of another just-say-no. Industries might never start here, or move away, because it's a gambling town. How much more agreeable it would be to welcome Don Barden to town with a whole heart. Just can't do it. Nice man, bad business.


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