Rockefeller Institute: Gambling Adds To Long-Term Budget Imbalances

Revenues Lag State Spending, Creating Constant Expansion Pressure

 

Gambling revenues dropped by almost 3 percent in the just-closed fiscal year, according to a new report released today by the Rockefeller Institute of Government. Casino, race track casino, and video slots revenue declined by an even greater 6.5 percent, when revenues from new racino openings in Pennsylvania and Indiana are not included.

 

Damning to the notion of gambling as a long-term budget fix is the report's finding that new types of gambling "do not keep pace with traditional tax revenues and government expenditures over time ... [and] may add to, rather than ease, long-term budget imbalances." The report examined gambling in all the states over the period 1998-2009.

 

"This new report proves false the industry's sweet promises of "limited" gambling as a fix for budget problems," said Jim Rubens, chair of Granite State Coalition Against Expanded Gambling. "Gambling dependence is budgetary quicksand, sucking state after state into more types of gambling in more locations."

 

Limited gambling's broken promises in 2009 (so far):

  • Revenue from Illinois' nine casinos plummeted almost 24 percent, forcing the state to permit over 45,000 additional slot machines in bars, restaurants, and social clubs throughout the state.
  •  Connecticut Governor M. Jodi Rell, facing sharp revenue declines from her state's two tribal casinos, earlier this year proposed legalizing 1,000 keno slot machines in bars throughout the state.
  • The Pennsylvania legislature is about to legalize table games at its existing casinos and racinos, though backers of that state's 2004 authorizing legislation promised table games would never be needed.
  •  In Maine, Bangor's Hollywood Slots management recently announced its desire to add table games, even though voters were promised that this would not be necessary when racinos were legalized in 2003.