Niagara Falls, New York is a world famous town and it’s broke. Allowing the Seneca Indian Nation to build and operate a casino was supposed to make the city prosper. At east this is what gambling proponents argued back in 2002. Local state officials were told that the Casino would bring in millions of tourists eager to spend their money, but it hasn’t worked out that way.

There is no question the Seneca Casino has prospered. It pulls in over $350 million each year in profits from gambling alone. No one is sure how much money is made from its other businesses – a buffet, a pub, a “high-end” steakhouse, an Italian restaurant, an Asian restaurant, a glamour spa, a conference center, a bistro, a coffee shop, a nightclub, a clothing store, numerous souvenir and gift shops, and a 26 story, 604-room hotel. And more stores are coming – a smoke shop, a gas station, and a mall are all being planned. Since the Casino is owned and operated by the Seneca Indian Nation it is all tax free.

There is no question the Seneca Casino has prospered, but what about the surrounding community? Why is the rest of the city a shadow of what it once was? It comes down to simple economics – people who spend millions in the Casino do not have any money to spend elsewhere in the city. Over two dozen businesses have closed since the casino’s opening, and the area surrounding the Casino has plunged deeper into desolation.

It is true that the Seneca Nation pays a portion of their gambling profits from slot machines to Albany with 25% of the drop going to the local community as the “host city.” But the city pays 100% for the privilege – for roads that lead to the Casino, increased police and fire protection, and social welfare costs. And the social costs have been high – increased crime, divorce, suicide, and bankruptcies.

The City of Niagara Falls has learned the hard way that the gambling industry’s promises are lies. When elected officials gamble on a city’s future with casinos, they always lose.