Hold-Ups in Gaming Expansion

As a response to budget crises, many governors have looked to gaming/gambling. There has been lots of talk about the subject, but gambling remains a concern in many places. So, how are things going?

Voters' concerns and elected officials' doubts have dashed hopes for expanded gambling as a solution to fiscal crises, even as state budget deficits mount.

Last year, pro-gaming candidates for governor were elected in 23 states, and industry insiders and Wall Street analysts said the expansion of gaming options was more likely than at any time in the past decade because of mounting fiscal deficits.

But while deficits have continued to mount, the proliferation of gaming has been routed.

In the 20 states that have most seriously considered expanding slot machines at racetracks and new casinos as potential solutions to fiscal crises, aggregate estimates of budget deficits have ballooned to $85.6 billion in 2003.

In 14 of the states, however, proposals to expand gaming have already been crushed in the state Legislatures, said gaming critic Tom Grey, executive director the National Coalition Against Legalized Gambling.

Lotteries were considered and defeated in another 10 states.

So are gaming taxes likely to play much of a role in relieving public fiscal pressure in the short run? Not likely. Have some states moved into position with new gambling laws? Yes, Indiana for example did. The impact? Nearly $650 million in new revenues to the state treasury last year. That’s significant.

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