Cruise Ship Gambling
Say NO to Cruise Gambling in Virginia
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.
Gambling hurts Families
“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:
- Emotional neglect and abandonment (and even physical abandonment) when one parent is consumed in an addiction.
- Stressed and irritable parents may lash out at children angrily, and even if they do not, these children can sense their parents’ tension.
- Children of people with gambling addiction are at higher risk of experiencing their own addictions later in life.”[3]
Lost Revenue
The arguments for cruise ship tourism often revolve around perceived economic benefit. Cruise ship gambling will reduce dollars spent in the Commonwealth. Most cruise ship passengers have a limited amount of expendable income. Money spent on gambling directly reduces expendable income and thus impacts the tourist’s ability to spend money on shore. This ripples: fewer tourist paying for excursions, fewer items purchased in stores, fewer meals served, fewer tourism service personnel hired, and so on. These Virginia based businesses and workers then pay less tax compounding the lost opportunity due to gambling.
Regulation and Enforcement
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.
Foreign-Flags & Taxes
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%.” 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. On ship gambling maximize their profits with little to no benefit to the Commonwealth.