by Kavan Peterson, Stateline.org
States are more addicted to gambling revenue than ever as the lure of easy new money for schools, tax relief and public services has led to an explosion of state-sanctioned casinos, slot machines at racetracks and lottery games.
Twenty-five years ago, gambling was legal in only three states. Now every state except Utah and Hawaii relies on gambling to generate revenues to help avoid raising taxes.
Pennsylvania will be the 11th state to offer slot machines at racetracks and other venues when it completes the awarding of contracts to operate 61,000 slot machines – more than any state but Nevada — to raise money for property tax relief. North Carolina in March became the 42nd state to launch a lottery and expects to raise $425 million in its first year, mostly for education.
Bets can be placed in nearly 900 casinos – 455 privately run in 11 states, 406 on Indian reservations in 29 states plus 29 racetrack casinos (known as racinos) in 11 states. And at least nine states (Delaware, Georgia, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Ohio and Texas) are considering opening their doors to casino or racetrack gambling.
The economic downturn early this decade was horrific for state budgets but helped push gambling into a mainstream form of entertainment. Gambling now attracts more than twice as many dollars as Americans spend on movie tickets, CDs, sporting events and concerts, according to the CNHI News Service. And it generates more than $20 billion a year in taxes and lottery revenues for state budgets, according to industry estimates that don’t include fees from Native American-run casinos.
While Americans are spending more money than ever on legal gambling, a new poll shows some softening in public approval for states’ reliance on gambling money.
