Gambling Revenues Fall In America

A new report from the Nelson A Rockefeller Institute Of Government has revealed that state and local government revenues from authorised gambling operations in America fell by 2.8 percent in fiscal year 2009.

The report was released as more states examine casinos, video lottery terminals and other gambling operations as a potential source of new revenues.

Although more than 25 states have considering such proposals over the past year, the authors of the study revealed that, while gambling activities often provide a quick boost to revenues, these generally do not keep pace with traditional tax revenues and government expenditures over time.

“The historical tendency for revenues from existing gambling operations to grow at a significantly slower pace than other state revenues may hold important lessons for states as policymakers consider further expansion of casinos, racinos and other gambling activities,” wrote Lucy Dadayan, Senior Policy Analyst for the Nelson A Rockefeller Institute Of Government and the report’s co-author.

Although this was the largest year-on-year decline in 30 years, Pennsylvania and North Carolina both reported increases due to recently authorised new gambling operations. Racino revenues grew in New York over the past twelve months with seven of the state’s eight racetrack casinos reporting boosts. The report stated that patrons bet twelve billion dollars at racinos across the state and lawmakers are poised to name an operator for Aqueduct’s proposed racino, which would add an additional 4,500 machines.

According to Robert Ward, Deputy Director for the Nelson A Rockefeller Institute Of Government and the report’s other co-author, states generate revenues from four major types of gambling operations; state lotteries, casinos, racinos and parimutuel betting.

The report found that gambling revenues from lotteries fell by 2.6 percent year-on-year nationwide while those from casinos dropped by 8.5 percent.

Revenues from parimutuel wagering operations decreased by 14.8 percent from the same period in 2008 while those from racinos increased by 6.7 year-on-year largely due to new racinos in Indiana and Pennsylvania.