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Amidst heated debate about legalizing slot machines at
Guam Greyhound, many are confused about just what the proposal means, and
what affect will the slot machines have on Guam’s economy and community.
Below is a breakdown of what precisely proposal B says about slot machine as
well as what each side feels is their strongest debate on the issue.
What does Proposal B propose?
Proposal B, also known as “Initiative to Revitalize Tourism in
Guam and Generate Revenue for Health Care and Public Education by Allowing
Slot Machine Gaming” will legalize slot machines at the Guam Greyhound
racetrack where a pari-mutuel betting system is already in place. Guam
Greyhound is a racetrack that will expand its operations to include a slot
machine parlor if the proposal is approved. As stated in the proposal, the
largest denomination token that can be used in the slot machine will be $5.
Additionally, the proposal states that 10 percent of the gross income from
the slot machines will go the local government in the form of an annual tax
on the slot machine revenue. This tax is then used to “subsidize (1) health
care costs, including prescription drugs for Guam residents, (2) education,
including improvements to the physical condition of Guam schools, and (3)
other programs for the general well-being of the territory.”
Slot Machine Proponents
The Guam Greyhound will contain 200 hundred slot machines and an anticipated
500 new jobs. In addition to the jobs, the economy will see a boost from the
increase in tourism as more visitors will extend their stay in Guam because
of the revitalized dog racetrack and slot machines. The proposed 10 percent
annual tax on the gross revenue from the slot machines goes directly back
into the community to pay for education and health care, and many believe
the tax on the slot machine revenue will even allow Guam luxuries like a
center for performing arts.
Slot Machine Opponents
Guam already suffers from gambling addiction problems and the addition of
slot machines will only compound that problem. Additionally, though slot
machines will create more job opportunities, Guam will also contend with the
joblessness of the slot machine addicts. The social cost of paying for the
gambling addiction treatment, the increase in crime and other social
problems associated with slot machine gambling will not be covered by the
slot machine revenue taxes. Additionally, other businesses, like restaurants
and shops, will lose the revenue local consumers instead spend on slot
machines. Also the 10 percent the slot machines will be taxed by the
government is comparably low to what other governments tax on slot
machines—often as high as 40 percent.
Currently the statistics show that there is a close number of supporters and
opponents at the polls, though the opponents lead by a small margin. This
just goes to show that Guam really wont know which way the voters will sway
on slot machine Proposal B.
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