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 provide an unstable and unsuccessful base for revenue and caution against using them to fix budgetary problems.
Government Revenues from Gambling
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 to the schools.
Better Odds- Money for lottery tickets could be better spent on education
California Lottery provides 1% of education funding
Despite the promises from gambling promoters it would fund public education if passed, this Los Angeles Times story reveals the California Lottery provides only 1.3% of the state’s entire education budget. This shows, once again, that the claims casino supporters routinely trot out are unsubstantiated and are proven falsehoods.
California Lottery funding generally makes up 1.3% of the state education budget
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 of the few states where slot machines are purchased by the state, is now facing tens of millions of dollars in costs that will cut into proceeds for years to come.
Maryland faces millions in costs after paying more for slot devices than expected
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 campaign was approved by voters in 2009. However, the projected estimates of casino revenues fall far short of reality, making many of Ohio’s plans to use the money for education and economic development unrealistic. Ohio has quickly learned that casino revenues are doing far from helping to improve the state.
Uncertain Benefits, Hidden Costs: The Perils of State-Sponsored Gambling
The recent fiscal downturn forced cash-strapped, tax-averse state lawmakers to seek unconventional revenue- raising alternatives, for additional revenue-raising opportunities outside of the income, sales and property taxes that form the backbone of most state tax systems. One of the most popular alternatives to those major revenue sources is state-sponsored gambling. As this policy brief points out, however, gambling revenues are rarely as lucrative, or as long-lasting, as supporters claim.
Schools’ slices of lottery pie small, getting smaller in Oklahoma
With more than 500 Oklahoma school districts vying for their cut of the funds and only 35 percent of gross proceeds going to education, the lottery pie gets sliced hundreds of different times before an individual school district sees its portion. The result: The amount in lottery funds sent to individual school districts in Oklahoma has been relatively small. Read below to learn more how the Oklahoma Lottery has (not surprisingly) failed to fund education in the way proponents had promised citizens.
Casinos in Florida: A Look at Crime and Prison Costs From the Introduction of Casinos into Miami-Dade
This 2012 report authored by Richard Herring and David Beggs analyzes the inextricable link between casinos and crime in surrounding counties. Based on the introduction of casinos into Miami-Dade County, a conservative estimate projects a $3 billion dollar impact on just the state prison system over a 10-year period.
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 dollars per year – the bulk of costs deriving from video slot machines. These costs exceed benefits when “excess” losses by problem gamblers is included. Cost per year per adult translates to $210. $1 U.S. dollar = $1.08 in Australian dollars as of Oct 23, 2009. You can find a longer summary of the report’s findings in the Profits from Gambling Addicts section.
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 the conclusion that, in general, casinos and greyhound racing tend to decrease state revenues overall.