In the face of slow economic recovery, states are beginning to look to legalizing more forms of gambling as a means of generating revenue. But this approach is utterly misguided, since gambling has often disappointed as a fiscal tool and as an economic development strategy, according to Steven Malanga, a senior fellow at the Manhattan Institute.
Gambling has been an integral part of the nation’s economic history.
In 1894, the last state-sanctioned lottery ended.
In 1964, New Hampshire reintroduced the lottery.
Today, 43 states have a lottery system that net an average of $18 billion a year.
In 1976, Atlantic City approved the first state-sanctioned casino as a means of fixing the budget.
Today, there are 15 state-operated casinos that make $4.5 billion in annual government revenue.
Despite the promised economic benefits, legalized gambling has fallen short of its promise to ease tax burdens and help fix the economy.
New Jersey was the fifth most heavily taxed when its first casino opened. Today, it is the second most taxed state.
Most states overestimate the revenue brought in by gambling. Oklahoma, for instance, predicted their lottery would raise $150 million. The actual revenue raised was $70 million.
Moreover, gambling creates a tradeoff with other forms of consumer spending. In one study, after a state instituted a lottery, consumer spending went down $42 per household.
Please share this post with your friends and comment below. If you haven’t already, take a moment to sign up for our free newsletter above and friend us on Twitter and Facebook to get real time updates.
Follow @WestJournalism
Loading ...
The economy is down. gambling proceeds are also down. When Louisiana first opened the gambling boats, milk came almost to a standstill. people did not have the money to buy food. at a later date it level off some. I know one man personally who was a good christian man, married, owned his home, good health, etc. he was addicted to the gambling. he lost his wife, his home, his health in a very short period of time. it is a lot of stories out their, but this is one i personally knew.
The state of MI is currently trying to amend it’s constitution to allow 8 more casinos to be built. There are already a half dozen that I know of, probably more. And yet they are still broke. Stupid is as stupid does.