Category Archives: Soaking the Taxpayers

Las Vegas tightens its belt, and yours too

And you thought that just those playing the daily sports fantasy games, or the lottery’s new Keno games, or the new casinos in Massachusetts, or the casinos at the racetracks were the only ones being hurt. Not so. Las Vegas …

Learn More

Evidence shows property tax relief for PA homeowners is a “charade”

Ten years after PA gambling proponents predicted casinos would relieve the tax burden, homeowners are underwhelmed.  “Proposal written in invisible ink”, “tax relief a charade” and “insult to every property owner in the state” were just some of the state …

Learn More

Schools in Maryland aren’t seeing the funding promised from casinos

In 2012, faced with a referendum on gambling on which voters would decide the fate of gambling in Maryland, Governor Martin O’Malley promised his constituents that casinos would bring in necessary revenue for education funding. He equated gambling with a …

Learn More

Taxpayers being swindled out of millions by casino licensing fees

This article by The Capital Gazette documents two think tanks’ research that explains how casinos have gotten their licensing fees much lower than one might expect, taking hundreds of millions of dollars from the state for which taxpayers have to …

Learn More

NC lottery does not provide promised education funds

This article by the North Carolina Justice Center explains how the North Carolina lottery is not living up to its promises of education funding. After providing an initial bump in funds for education, the level of education funding has now …

Learn More

Report shows staggering costs of problem gambling

This report, by The Victorian Competition and Efficiency Commission, estimates the cost of problem gambling to be as high as $2.8 billion in Victoria, Australia. Excess gambling by problem gamblers accounts for up to $1.4 billion of this, with the …

Learn More

Tax break for Atlantic City casinos means more struggles for the city

According to this article by NorthJersey.com, Atlantic City may have to take on an additional tax burden after casinos in the city won a large property tax reduction in court. The reduction is due to declining property values of casinos …

Learn More

NY schools see stagnant aid in face of rising lottery revenue

Below is an article that details the growing gap between lottery profits and aid for education in New York state. While the revenues for the New York lottery have soared in recent years, the percentage that is allotted to the …

Learn More

Homeowners see less-than-expected tax relief from casinos

Homeowners in Pennsylvania were hopeful, after a law was passed in 2006 that dictated the distribution of fund from casinos, that they would finally see a sizable reduction in their property taxes. It was break they needed, however, it was …

Learn More

Mega Failure: Why Lotteries Are A Bad Bet For State Budgets

Below is a great, concise piece by Think Progress, a political blog of the Center for American Progress, about how lotteries have been a major policy failure because they are highly regressive and are an unsustainable revenue source, ultimately worsening …

Learn More

Casinos do not provide budgetary stability they promise

Casinos fail to increase revenue even though casino leaders continue to promise to the contrary, according to an article in the Lexington Herald-Leader in Kentucky. Instead of generating new income to provide for education and other services, experts say casinos …

Learn More

Money for lottery tickets could be better spent on education

This story in The Chicago Reporter chronicles the funding problems that have plagued the city’s education system. The article proposes that instead of buying lottery tickets, that give only 30 cents per dollar to the school system, Chicago’s children would be better served with contributions directly …

Learn More

Maryland faces millions in costs after paying more for slot devices than expected

When Maryland voted to legalize slot machines, officials opted to acquire the games of chance themselves so that the state would be responsible for the integrity of the gambling. This however is causing more problems than expected. Maryland, being one …

Learn More

Caesars casinos skips out on local property tax burden in Missouri

Ohio Broken Revenue Promises

Casinos often hand out empty promises during their beginning stages to gain citizen approval, as is the case with the state of Ohio. Ohio was promised new textbooks, increased funding for the arts, and economic development when the casino development …

Learn More

Australian Government Study Shows Predatory Gambling Costing Citizens $4.5 Billion Dollars Per Year, the Bulk of Costs Deriving from Video Slot Machines

According to the 2010 Australian Productivity Commission report (their government’s independent research and advisory body) which provides an in-depth analysis of the effects of the predatory gambling business on the nation, predatory gambling now costs Australian society about $4.5 billion …

Learn More

Public Agency Acts as Casino Debt Collector in Nevada

The taxpayers of Nevada are funding efforts to collect debts for the state’s casino industry. According to the Las Vegas Sun, this is the only state in the country where this occurs. Casinos make a practice of giving out loans, …

Learn More

Economists Find That Gambling Revenue Comes At the Expense of Sales Tax Revenue

Economists John Jackson and Douglas Walker published an article in Contemporary Economic Policy in early 2011 that showed that the increased revenue that comes from gambling often comes at the expense of sales tax revenue. The two also came to …

Learn More

New Government Study Reveals the Massive Cost of Problem Gambling

While government-sponsored gambling is often trumpeted as a new source of revenue, a 2013 study shows that is not the case. The study shows the staggering cost of problem gambling in Australia. It proves that the social and economic cost …

Learn More

Lotteries Generate More Revenue Than Corporate Income Taxes in Some States

In this Reuters opinion piece, David Cay Johnston examines the shift in 11 states that shows, lotteries, the most heavily taxed consumer product in America, generate more revenue than state corporate income taxes. For example, the Rhode Island Lottery netted …

Learn More

The Relationship Between State Lotteries and Government Assistance Payments

This paper examines United States lottery revenues and finds an increase in lottery activity during weeks in which transfer payments (i.e. Aid to Families with Dependent Children, Social Security, disability, etc.) are distributed. Revenues from state lotteries are  also shown to …

Learn More

Philadelphia Federal Reserve Bank: Costs of Predatory Gambling Outweigh Any Benefits

This report from the Federal Reserve Bank of Philadelphia concludes that the local benefits of casinos would be outweighed by costs such as increases in pathological gambling, crime and personal bankruptcy. Economic and Social Impact of Introducing Casino Gambling

Casinos Failed to Bring Prosperity to Connecticut

Despite developing two of the largest casinos on the planet in the 1990s, the state of Connecticut is in dire fiscal shape. The New York Times piece below states that “Connecticut’s finances are among the most troubled in the nation: …

Learn More

Lottery Revenue Comes Largely From People Already Receiving Government Support

Studies of lottery spending, including this study from the Federal Reserve Bank of St. Louis in 2008, show lottery revenue comes largely from Social Security, unemployment and other forms of government support. Government, in other words, is paying government — …

Learn More

California Taxpayers Pay Even If They Don’t Play

Predatory gambling operators are fond of framing their scheme as a “voluntary tax.” Yet according to the California Attorney General’s 2006 study titled “Gambling in the Golden State”, problem and pathological gamblers cost California $1 billion per year, more than …

Learn More

Predatory Gambling Means Higher Taxes For All and Less Services for All

The 2010 New Hampshire Gambling Commission report showed one casino would raise $219 million in state revenue but the total social cost would be $287.7 million: a net loss of $68.7 million. The casino takes its profits off the top …

Learn More

Government Revenues from Predatory Gambling

A 2009 report by the Rockefeller Institute of Government concluded that predatory gambling worsens long term budgetary problems for states. Read the report below to see why states that institute predatory gambling as a means to stabilize the budget are …

Learn More