Cost Benefit Analysis of Legalized Gambling

Client: Leadville Coalition

Site: Leadville, Colorado

The Collaborative’s project team, including Coley/Forrest, Inc. and BRW, Inc., completed an analysis of costs and benefits that would result in Leadville if the initiative to legalize gaming passed in November 1992. The team had extensive experience with and knowledge of the limited gaming industry, and had knowledge of rural communities and the impact evaluation process. Time was of the essence for this project because the community of Leadville was planning to conduct a non-binding citizen preference vote on gaming. The project team scheduled and completed this project in a little more than two months, and results were used to assist voters in making an educated decision. To enhance understanding, the project team reviewed the development of limited gaming in the four Rocky Mountain communities where gaming was currently legalized. Twelve key variables were used, the magnitude of impact of these variables compared in each town, and the manner in which local government and the private sector responded was outlined. This allowed Leadville citizens to see how their counterparts had dealt with the issues. Existing conditions in Leadville were analyzed and compared with conditions in other communities to project the expected outcome of legalized gaming in Leadville. The overall demand for gaming was measured against the existing facilities statewide and analyzed to determine the impacts associated with varying intensities of gambling in Leadville. Leadville was also provided with options that would enable the community to manage gaming impacts to lessen negative impacts and heighten positive impacts.