« Ind. Courts - More on: Supreme Court adds new Evidence Rule 617 | Main | Environment - California water bottling company to build Plainfield plant »
Wednesday, September 16, 2009
Ind. Gov't - More on: "State no longer holds all cards"
Following up on this ILB entry from Sept. 13th, here is a Sept. 10th story I had missed, by Ian Urbina of the NY Times. Some quotes:
CINCINNATI — Casinos and lotteries in most states are reporting a downturn in revenue for the first time, resulting in a drop in the money collected by state and local governments, according to new state data.The story includes these charts on changes in casino and lottery revenues.The decline comes as states are rapidly expanding gambling in hopes of stemming severe budget shortfalls, and it indicates that gambling is not insulated from broader economic forces like recessions, as has been argued in the past.
The drop has led some gambling experts to wonder whether the industry is reaching market saturation, whereby a limited number of gamblers with a fixed amount of money to bet is being split across a growing number of gambling options.
States that have been invested in gambling the longest have been hit hardest. Illinois reported a $166 million drop in tax revenue in fiscal year 2009, from 2008; Nevada had a $122 million drop, and New Jersey $62 million. * * *
“The data shows that states take a real chance in depending on gambling because this revenue is not likely to keep pace with growing budgetary needs,” said Lucy Dadayan, a senior analyst at the Nelson A. Rockefeller Institute of Government at the State University at Albany, which will release a report on the subject next week. * * * [ILB - here is the Institute - no sign of a report yet]
About 60 percent of people who participate in casino gambling have cut back on spending on the activity, according to a 2008 national survey conducted by the [American Gambling Association].
Despite the downturn, revenue from racinos grew this fiscal year, producing $2.9 billion in taxes and fees in 12 states compared with $2.7 billion the year before, a 6.7 percent increase.
But Ms. Dadayan of the Rockefeller Institute said the racino windfalls might be short-lived because slot profits usually soften with time as their novelty wears off and more states add machines.
If Pennsylvania and Indiana, where slots are new, are excluded, the total slot revenue from the other 10 states with racinos actually fell by $76 million in fiscal year 2009, a 4 percent decline.
Posted by Marcia Oddi on September 16, 2009 08:50 AM
Posted to Indiana Government