Mississippi gambles: the carpetbaggers are back

National Review, April 7, 1997 by Ben C. Toledano

In February, the House of the Mississippi Legislature passed a bill amending the statute which sets forth the qualifications of competent jurors. The amendment deletes the disqualification of "common gamblers or habitual drunkards." One legislator explained the bill's passage this way: ". . . the legalization of casinos in Mississippi makes the gambling requirement unfair. You know now we encourage common gambling."

Mississippi didn't always encourage common gambling. In 1951, the Preparedness Subcommittee of the U.S. Senate Committee on Armed Services held a hearing in Biloxi on the subject of "Illegal Gambling Activities near Keesler Air Force Base." Parents of young servicemen had complained to their congressmen that gambling on the Gulf Coast was adversely affecting their sons. Indeed, two young lieutenants who owed large sums of money to the gamblers had tragically committed suicide. Senator Lester C. Hunt of Wyoming presided over the hearing.

At that time in Harrison County there were 1,257 illegal slot machines. Witnesses testified that servicemen lost between $500,000 and $750,000 a month (the air base's monthly payroll was $4 million). Major Alexander, the base's air police officer, testified regarding the two suicides and the general ill effects of gambling upon the boys, whose average age was 18. When asked if gambling was harmful to the personnel at Keesler, he replied: "Gambling is no good for anyone, airmen or civilians."

After 46 years, the 1,257 illegal slot machines have been replaced by 11,624 legal ones. And a former commanding officer of Keesler Air Force Base, Major General Paul Harvey, is now the executive director of the Mississippi Gaming Commission (MGC). Where honky-tonks once bordered the shoreline, towering tasteless hotels and massive garish casinos now stand. For generations, it was believed that illegal gambling could never be eliminated on the Gulf Coast. The solution was actually very simple. Legalize it.

Unfortunately, when Mississippi comes to mind, so does the word poor. Poor people, black and white; poor schools on every level; poor economic opportunities; poor leadership, political, business, and civic. Though unprepared for constructive changes, Mississippi was ripe for legalized gambling: so cheap to buy; so easy to influence; so predisposed to a quick fix. The Carpetbaggers have returned to Mississippi, and they are aided and abetted by local politicians, lawyers, developers, landowners, and speculators --Scalawags, so to speak. Poor comes to mind once more.

In Mississippi, few things happen quickly. But gambling was legalized so quickly that most people still don't know how it happened.

In March 1989, the Mississippi Legislature approved "Cruise Vessel" gambling. Only a year later, the Legislature greatly reduced the requirements for Cruise Vessels and defined a new category, Vessels. Vessels did not have to be under way but could simply be "on the Mississippi River or navigable waters within any county bordering on the Mississippi River." Dockside casino gambling was thus legalized.

The battle over the bill was fought in the 52-member state Senate. After extensive wheeling, dealing, trading, and pleading, the vote was 22 to 20 in favor of the bill. Ten senators took a walk. Thus, by a margin of 2 votes, with only 80 per cent of the Senate voting, the economic, political, and cultural makeup of the state was radically altered.

Shortly thereafter, the Legislature, in what was in name and fact an Extraordinary Session, passed the Mississippi Gaming Control Act (MGCA), which, among other things, approved dockside gambling "in the waters . . . which lie adjacent to the State of Mississippi south of the three most southern counties."

The entire scenario was carefully crafted. Since "Christian" legislators were a problem, they had to receive concessions. Of Mississippi's 82 counties, only 14 were permitted to exercise local options on "dockside" gambling. Presumably, that would leave 68 uninfected. It was exactly what the casino operators wanted; they knew they would lose a statewide referendum by a large margin.

So the high hurdle had been cleared, leaving only the low hurdles of obtaining voter approval in the 14 counties directly affected. When someone applies for a casino license, if the required number of registered voters in the county do not sign a petition in a timely manner, the governing board of the county must approve dockside casino gambling. If a petition is filed and a referendum is held, a vote in favor of gambling is final and definitive. Once the people vote yes, they can never again vote on the issue. But, if the people vote no the first time, they can vote again, an unlimited number of times, presumably until they vote yes. To date, 7 of 11 Mississippi River counties and 2 of 3 Gulf Coast counties allow casino gambling.

One legislator explained the economic Reconstruction of Mississippi this way: "It all happened so fast, we hardly had time to vote on the bill, much less read it." There had been no public hearing or study of the issues involved. No efforts were made to determine if casino taxes would be regressive in nature; no social-impact study was conducted regarding the costs owing to increased crime, compulsive gambling, demands upon highway and sanitation systems, or adverse effects upon existing businesses. The prevailing legislative attitude was: Vote for casino gambling and consider the problems after the fact.