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L. S. GOVERNMENT PRINTING OFFICE 1978-253-162

Mr. HYDE. I thank you very much, Mr. Fahrenkopf.

We have a quorum call to be followed by a 10-minute closing speech by the Speaker on the defense appropriation conference committee bill, then there will be a vote, and then we are free to return. Is that correct?

So after the vote, which will come 10 minutes after this quorum call is over-and that takes 15 minutes-we will be back.

I really apologize. It is an institutional hazard here that when we have hearings on the days we meet on the floor, and you have been terribly patient. An important subject. What you have to say will get attention, is getting attention. So if I may impose on you further, we will be back after the vote, the second vote the next vote, which will come in 15 minutes.

[Recess.]

Mr. HYDE. The committee will come to order.

I apologize to the panel. We have had some very important votes just previously on the defense appropriation conference report, and they are we are waiting now for the Senate to do something on the continuing resolution as it affects Bosnia and sending troops. So we are scattered to the winds.

But I just want to assure the panel that their statements will be made a part of the record and they will be studied by staff and certainly myself and other Members. So in the spirit of trying to liberate you as quickly as I can, Mr. Fahrenkopf, did you have anything more you wanted to add?

Mr. FAHRENKOPF. I finished, Mr. Chairman. Thank you very much.

Mr. HYDE. Thank you very much.

Tom Grey, executive director of the National Coalition Against Legalized Gambling.

Mr. Grey.

STATEMENT OF TOM GREY, EXECUTIVE DIRECTOR, NATIONAL COALITION AGAINST LEGALIZED GAMBLING

Mr. GREY. Chairman Hyde, members of the Judiciary Committee, it is really ironic that I am going to get more time speaking here than I got in my own county, Jo Daviess County, IL, prior to placing of a riverboat into that county. So I appreciate being here.

It is really my honor and privilege to speak on behalf of the National Coalition Against Legalized Gambling. We are a relatively new player in this high-stakes poker game that is going on here in America. We are people who I would like to introduce. First and foremost, we are concerned citizens. We are a coalition of concerned citizens. And I would like to introduce that coalition somewhat by saying, in Illinois, we have the Americans for Democratic Action, the Christian Coalition, and the State NAACP. And if you can see the ADA and the Christian Coalition together at a press conference, you know you can stick anyone from any political persuasion between them.

We also cross what I call a values construct. In Bridgeport, CT, we had gays and lesbians meeting with James Dobson's Focus on the Family people trying to figure out a way to keep Steve Wynn out of Bridgeport, and I thought that was a very interesting combination of people that were talking about quality of life.

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Finally, we are a combat-tested coalition of citizens. We have won 18 States and lost 2 in 1994 and 1995. We have won eight States at the ballot box, three by court case and seven by legislatively stopping expansion of gambling bills coming up. We have done that.

I want to put a face on who we are. Laura Rosse, with her son on her back, won the battle of Bennington, VT. Arlene Hersher and Tori on rollerblades won the battle of Pomona, CA, against a card room coming in. We had the Fighting Dominicans in Illinois that worked on lobbying the legislature. They have been fighting gambling since 1496.

We have senior citizens, who include Beth Paschall in Palos Heights; and my own father, Bud Grey who stood up in Arlington Heights and fought. JoDean Joy had a showdown with Kevin Costner in South Dakota, and outdrew him.

I got Don Mottley down in Evansville, IN, a single person that tied up Aztar Corp. for 8 months, trying to save a park, and they haven't been able to open that riverboat.

These are the people that I am here speaking for. They are the credibility that I try to convey to you. These are citizens that have said our communities have been attacked. And the Economist magazine called us picket fence activists. We meet them at the picket fences. That is truly the story of the national coalition.

Now let me say that we have won these not because we have said to people thou shalt not gamble, because we know 8 out of 10 people gamble in some form or another, whether it be the pennyante poker game, or a lottery ticket when the jackpot is over $40 million. We have won by saying it is not good economics, it is not good politics, and it is not good for the quality of life. Whether you gamble or not is your choice.

If we could trust local and State government, then perhaps we would not have had to be here. I am pleased that you heard us and that you are allowing this debate to begin, and we welcome the debate. I think this is truly the first round, and we will welcome debating Mr. Fahrenkopf in the future over the future of America. Thank you.

[The prepared statement of Mr. Grey follows:]

PREPARED STATEMENT OF TOM GREY, EXECUTIVE DIRECTOR,
NATIONAL COALITION AGAINST LEGALIZED GAMBLING

Chairman Hyde and distinguished Members of the Committee:

A battle is raging across our country. Ambitious gambling promoters have been invited into our communities by some state and local officials under the guise of prosperity, economic development, jobs, and a painless new source of govemment

revenue.

Armed with unlimited capital and hidden political connections, these gambling promoters insist that gambling is productive, that it meets the desires of the public, and that the growth of gambling throughout America is inevitable. They pledge that by the year 2000, every American will live within a two-hour drive of a gambling casino.

Ladies and gentlemen, these gambling interests are wrong.

The recent, rapid spread of gambling was never the result of a popular movement. Rather, it was driven by self-interested gambling pitchmen with money, high-priced lobbyists, and pie-in-the-sky promises. Cash-starved municipalities and legislatures, eager for a way to increase revenue while avoiding voter backlash, were vulnerable to the prospect of something-for-nothing.

Individual citizens questioned whether this "free lunch" program could rationally achieve its promise. And as the guarantees of economic prosperity evaporated, state and local groups spontaneously sprang up across the nation to oppose the further spread of gambling. In 1994, these varied citizen groups created the National Coalition Against Legalized Gambling (NCALG).

2376 Lakeside Drive, Birmingham, AL 35244

National Information Center 800-664-2680

Testimony of Tom Grey
Page 2

What is the National Coalition Against Legalized Gambling

NCALG is a grassroots movement. Our members span the entire political spectrum from conservative to liberal. Our coalition encompasses both business and labor, both religious and secular, with concemed citizens in every state.

Our arguments against the expansion of legalized gambling are based on public policy, sound economics, and quality of life within our communities, not on personal morality.

I have attached to my written testimony references to objective, academic studies showing that the expansion of gambling is bad for families and businesses. These studies show that:

gambling enterprises cost more jobs than they create;

gambling misdirects prudent govemment investment away from sound economic development strategies;

gambling sucks revenues from local economies;

gambling establishments tend to attract crime; and

gambling addiction destroys individuals, undermines families, and weakens our business community.

If the members of NCALG were to base our opposition to gambling on personal morality, we would lose in the political arena. After all, a majority of Americans gamble. But because our arguments are based on cold, hard facts, our organization and its affiliates have consistently beaten the gambling interests on ballot questions and in state legislatures over the past year – winning fifteen major battles and only narrowly losing the remaining two.

Turning the political tide

In November 1994, the issue of gambling was on more state ballots than any other issue. Of ten statewide referenda, NCALG won six at the ballot box (Colorado, Florida, Minnesota, Oklahoma, Rhode Island and Wyoming) and two in the courts (Arkansas and New Mexico). Most of our victories were by landslide margins.

After their November debacle, the casino companies targeted legislatures in seven states. But this year we completely shut them out. The casinos lost major battles in Alabama, Illinois, Maryland, Pennsylvania, Texas, Virginia and West Virginia.

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