Protect Virginia has submitted a position paper to the VA joint subcommittee on Gaming against cruise ship gambling in Virginia waters requesting that ship gambling is studied in the broader context of cruise industry's detrimental impacts on communities and the environment.
The cruise ship practice of gambling puts profits before people. It is estimated that 9 million Americans suffer from gambling addiction with an annual social cost of $14 billion according to the National Council on Problem Gambling. One reference states that “the casino has a 25% edge overall when it comes to slot machines."[1] It is no wonder the cruise industry wants to open its casinos in our waters and has registered five lobbyist in Virginia. Serious questions and concerns about gambling have led Protect Virginia to stand against this practice that will further incentivize this unhealthy industry in Virginia waters.
“Like addictive drugs such as cocaine, heroin, nicotine and alcohol, gambling activates the brain’s reward system, which is powered by dopamine.”[2]
“While the addicted person will definitely suffer during a gambling addiction, that person’s family will also face challenges. The stress that the problem gambler experiences may cause irritable behavior, secrecy, and arguments. Calls from creditors and bill collectors erode relationships.
The children of gambling addicts also suffer in many ways, including:
Most cruise ships fly a foreign (non-US) flag. This greatly reduces their US tax burden on their gambling profits. The article, Economics of Cruise Ships, states that, “According to annual report filings, the major cruise lines pay an average tax rate of 0.8%.”[4] The industry exploits US infrastructure but does not give back its fair share. BTW the Federal corporate tax rate is 21%. The cruise industry has engineered its tax structure to maximize profits while not paying their fair share back into the Virginia and the US economy.
Regulation and enforcement are not straight forward. There is machine certification, minimum age enforcement, addiction intervention, conflict and dispute resolution, and more. According to John Kavanagh of Pacific Maritime Lawyers says: “Pragmatically, the flag state has responsibility for investigating issues with that ship wherever it is, but the further away that ship is from home, the logistics of that make it very difficult.”[5] The cruise industry’s preference is self-regulation but as can be seen from their pollution record, self-regulation is not effective.
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