Saturday, April 20, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, April 13, 2016
State Revenues From Gambling: Short-Term Relief, Long-Term Disappointment
By News Release @ 3:40 PM :: 4763 Views :: Gambling

Rockefeller Institute Blinken Report: Gambling Not a Solution to State Revenue Woes

News Release from the Nelson Rockefeller Institute of Government April 12, 2016

Albany, NY ----States turning to gambling as a possible quick fix for revenue woes have often been disappointed with the results, according to a just released study from the Nelson A. Rockefeller Institute of Government, entitled State Revenues From Gambling: Short-Term Relief, Long-Term Disappointment.

According to Lucy Dadayan, senior policy analyst at the Institute and principal author of the report, despite the steep declines in tax revenues during the "Great Recession" most states were reluctant to raise taxes on income or sales. As an alternative, she reports, officials in many states turned to taxes on gambling, part of what are often called "sin taxes." In the recession's wake, over a dozen of states have legalized and expanded different forms of gambling activities in the hopes of raising more revenues, despite the fact gambling revenue plays a small role in state budgets, ranging between 2.0 and 2.5 percent of state own-source general revenues in the typical state.

The report demonstrates that tax and fee revenues from gambling activities have softened considerably in recent years, due, in part, to market saturation and industry cannibalization. In total, the report indicates that inflation-adjusted tax and fee revenues from major sources of gambling grew by only $0.5 billion or 1.8 percent for the nation as a whole between 2008 and 2015. This growth is largely attributable to the states that had recently legalized and expanded operations of casinos and racinos, while gambling revenues in long-time casino/racino states, at the same time, saw significant declines.

Gambling revenue did not do well in 2015, relative to 2014. Lottery revenue declined by 0.7 percent in real (inflation-adjusted) terms in fiscal year 2015, with twenty-seven states reporting declines. This was the second consecutive decline. Casinos experienced dramatic growth during the 1990s, but that growth slowed over the past decade. In recent years, much of the growth has shifted to racinos ----hybrids of casinos and racetracks ----as more states have approved such facilities. Revenues from casinos and racinos combined increased by 1.1 percent in real terms in 2015, but that growth is mostly attributable to two states, Maryland and Ohio, which legalized casino/racino operations after the Great Recession and opened more facilities in fiscal year 2015.

The Institute's analysis of gambling revenue trends indicates that gambling is not a reliable and sustainable source of revenue for the states and not a significant solution to budgetary problems. Additionally, Dadayan notes, gambling is associated with tangible and intangible economic and social costs that are hard to quantify and measure. The study warns that "State officials considering expansion of existing gambling activities or legalization of new activities should weigh the pros and cons carefully."

The study is the third in a series of "Blinken Reports" funded by former U.S. Ambassador to Hungary Donald Blinken and his wife, Vera. For a copy of the report, go to www.rockinst.org/pdf/government_finance/2016-04-12- Blinken_Report_Three.pdf.

# # #

About the Rockefeller Institute of Government The Nelson A. Rockefeller Institute of Government is the public policy research arm of the State University of New York. The Institute conducts fiscal and programmatic research on American state and local governments. Journalists can find useful information on the Newsroom page of our Web site, www.rockinst.org. In addition, you can sign up to follow us on Facebook or Twitter.

Report: State Revenues From Gambling: Short-Term Relief, Long-Term Disappointment

BT: Gambling only a short-term fix for cash-starved states: study

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT