This coming November there will be a referendum on the ballot about whether or not to allow slots machines at horse racing tracks around the state of Maryland. I'll just state from the beginning that I'm opposed to the idea. It seems like there are a couple of arguments one might use against slots.
Social Cost Argument
There are all kinds of studies about what gambling does to a community. Gambling addiction overwhelmingly affects the lower income brackets. In other words, those who can least afford to gamble do it the most, and do it to excess. Apparently there are provisions in the Maryland proposal to use some of the income for increased policing around the slots areas. Its like they're admitting that it'll create problems.
I'm also annoyed by the "stupidity tax" argument for slots. If its true that those who can't afford to gamble do it more then that just increases the future costs for unemployment, food stamps, and any number of other social programs to support those people. So the tax is actually on those who advocate letting poor people gamble their money away. In a way I guess it is a "stupidity tax", but on who?
Money for EducationThe way a lot of slots proponents advocate their goal is to sell it as income for education. Well, that's obviously ignoring the fact that a lot of companies are going to first turn a profit on the gambling before turning over some of the money to the state.
The fact of the matter is that if we really do need more money for education, which usually seems to be the case, then the cheaper and more equitable solution is to increase taxes. Taxes can be tailored to spread the financial cost across the economic spectrum. Creating companies that are creating profits for themselves first doesn't seem to be the most efficient solution.
Save the HorsiesApparently the horse racing industry is falling on hard times. Allowing slot machines on the premises will increase the income to these establishments and allow racing to continue.
So, let me get this straight... There's a failing industry, and we're all supposed to chip in to help it survive? That smacks more of socialism than capitalism. Ayn Rand would give a big, "I told you so," to that.
Losing Money to Those "Other" StatesThere are slot machines in neighboring West Virginia and Delaware. Some people think that we're "losing" money to these states, and that somehow by having our own slot machines we'll be able to keep it local.
This goes back to the social cost argument. The richest people are playing slot machines, so really how much money are we losing out on? And the, "everyone else is doing it argument," is morally dubious at best, and flat out juvenile at worst.
